Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 329027 times)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2120 on: July 20, 2020, 11:41:50 PM »
you can do both?
how much $$ profit can be made for my business?

I wouldn't quite phrase it like that, but yes you can get both PPP and EIDL loan (EIDL grant is no longer available).

If your Schedule C line 31 is showing 10k you'll get ~2k in PPP- fully forgivable.

EIDL is a 30 year loan with 3.75% interest. How much you get depends on gross income and COGS (if any).

Offline ilherman

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2121 on: July 21, 2020, 10:26:43 AM »
How long does it take for the SBA to approve new EIDL applications? Submitted for processing yesterday?
You can say what you think when you think what you say.

Offline bubkiz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2122 on: July 21, 2020, 11:50:27 AM »
Submitted several applications in mid-June for different businesses. I got loan offers and was funded on one but only got one $1k deposit. Will the SBA still process and deposit the advance on previous applications?
To clarify: Will accepting the EIDL loan effect any potential EIDL advance? Meaning, once the loan is funded, is there still a concept of $1k being forgivable? Makes a difference if the loans should be accepted or to wait is the advance will still be deposited. (If the the announcement that they are no longer processing advances applies to mid-June applications, the question is moot)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2123 on: July 21, 2020, 12:36:21 PM »
To clarify: Will accepting the EIDL loan effect any potential EIDL advance? Meaning, once the loan is funded, is there still a concept of $1k being forgivable? Makes a difference if the loans should be accepted or to wait is the advance will still be deposited. (If the the announcement that they are no longer processing advances applies to mid-June applications, the question is moot)

No, accepting the loan has no bearing on the advance, and they will not forgive 1k of your loan if you didn't get the advance. It's two separate buckets that don't mix.

Offline zh cohen

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2124 on: July 21, 2020, 01:28:32 PM »
PPP I'd say Bluevine even with zh's experience- he seems to be the exception. If you don't want Bluevine I'd say next up is Kabbage.

Or you can go to Crossriver directly at https://crossriversba.com/

That way there is someone to talk to if it doesn't get automatically approved.

Offline bubkiz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2125 on: July 21, 2020, 01:34:39 PM »
No, accepting the loan has no bearing on the advance, and they will not forgive 1k of your loan if you didn't get the advance. It's two separate buckets that don't mix.
Thank you. Any reports of EIDL advance deposits (on June applications) still getting deposited or is it over for now?

Offline Deal Guy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2126 on: July 22, 2020, 01:01:12 AM »
Let's say your self employed income for 2.5 months is 5k.
Have people been getting ppp for the full 5k, or is there some deduction, which brings it down to around 5k x .93%?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2127 on: July 22, 2020, 08:35:51 AM »
Let's say your self employed income for 2.5 months is 5k.
Have people been getting ppp for the full 5k, or is there some deduction, which brings it down to around 5k x .93%?
If it's a 1065 partnership there's that 7% deduction. Schedule C and C/S Corp owner employees don't have that.

Offline talmid chuchem

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2128 on: July 23, 2020, 02:14:53 AM »
I wouldn't quite phrase it like that, but yes you can get both PPP and EIDL loan (EIDL grant is no longer available).

If your Schedule C line 31 is showing 10k you'll get ~2k in PPP- fully forgivable.

EIDL is a 30 year loan with 3.75% interest. How much you get depends on gross income and COGS (if any).

I'm applying for a non-profit, Gross revenue is around $600k, what should COGS be? The more cost the better odds of getting a full $150k, or the less cogs?
Does COGS mean only overhead etc, or all excess money that was distributed to tzedukah also count as COGS? If yes, then COGS is same amount as revenue
Anything else I need to be aware of?

Offline Deal Guy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2129 on: July 23, 2020, 03:53:19 AM »
If it's a 1065 partnership there's that 7% deduction. Schedule C and C/S Corp owner employees don't have that.
Interesting. Do you know why a 1065 has the 7% deduction, and a regular schedule c doesn't?

Offline joeberg

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2130 on: July 23, 2020, 09:00:24 AM »
On the EIDL has anyone been declined due to ineligible business activity? What activities are deemed ineligble?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2131 on: July 23, 2020, 09:06:32 AM »
I'm applying for a non-profit, Gross revenue is around $600k, what should COGS be? The more cost the better odds of getting a full $150k, or the less cogs?
Does COGS mean only overhead etc, or all excess money that was distributed to tzedukah also count as COGS? If yes, then COGS is same amount as revenue
Anything else I need to be aware of?

As a non-profit if you write in $0 costs or leave it blank, they'll reach out to you to get your operating costs- they won't let it slide.
COGS should be overhead only, not the distributions.
Don't put in an amount in the economic injury field, or else you'll only get that instead of the full potential amount.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2132 on: July 23, 2020, 09:11:05 AM »
Interesting. Do you know why a 1065 has the 7% deduction, and a regular schedule c doesn't?

It's actually more than 7%...
https://home.treasury.gov/system/files/136/PPP-IFR-Loan-Forgiveness.pdf
General partners are capped by the amount of their 2019 net earnings from self-employment (reduced by claimed section 179 expense deduction, unreimbursed partnership expenses, and depletion from oil and gas properties) multiplied by 0.9235.
This is done to remove the “employer” share of self-employment tax.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2133 on: July 23, 2020, 09:12:28 AM »
On the EIDL has anyone been declined due to ineligible business activity? What activities are deemed ineligble?

Anything illegal or of deviant nature.
There was talk up-thread of a rejection when choosing RE Developer as the business activity, although I know that RE- Other was approved so I guess it's all in the detail.

Offline joeberg

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2134 on: July 23, 2020, 09:15:58 AM »
I put in RE other. They finally emailed me to send more details. My business does many different things I wanted to know if anyone knows what activities may be ineligble.

Offline talmid chuchem

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2135 on: July 23, 2020, 09:49:55 AM »
As a non-profit if you write in $0 costs or leave it blank, they'll reach out to you to get your operating costs- they won't let it slide.
COGS should be overhead only, not the distributions.
Don't put in an amount in the economic injury field, or else you'll only get that instead of the full potential amount.
How can I make sure to get the full potential amount?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2136 on: July 23, 2020, 11:02:11 AM »
How can I make sure to get the full potential amount?

Like I said:
Enter Gross Revenue
Overhead costs as COGS
Don't enter any amount as economic injury

Offline talmid chuchem

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2137 on: July 23, 2020, 11:57:13 AM »
Like I said:
Enter Gross Revenue
Overhead costs as COGS
Don't enter any amount as economic injury
The less cogs the better, or the more the better?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2138 on: July 23, 2020, 03:36:27 PM »
The less cogs the better, or the more the better?
Accuracy is best.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2139 on: July 23, 2020, 03:46:38 PM »
The less cogs the better, or the more the better?
It's a difficult question honestly, because some non-profits get approved for 50% of Gross Profit less COGS, while some get approved for 50% of COGS only. You might need to submit your application and if it comes in too low talk it out with an agent to explain how the day to day works.