Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 243375 times)

Offline yossig

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2200 on: July 31, 2020, 01:07:19 PM »
800th person in line and then it hangs up on me after 30 minutes.
try again.

I was once the 2800th person and waited about 45 minutes

Offline helpusout

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2201 on: July 31, 2020, 01:35:13 PM »
try again.

I was once the 2800th person and waited about 45 minutes

i got thru. seems they approved and then denied my loan at the last second. should i try and appeal?! 
« Last Edit: July 31, 2020, 02:45:46 PM by helpusout »

Offline ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2202 on: August 02, 2020, 03:45:41 PM »
Not sure if this is the right thread for this, but the following is a very interesting and eye opening thread:

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I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2203 on: August 02, 2020, 04:12:11 PM »
Not sure if this is the right thread for this, but the following is a very interesting and eye opening thread:

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Very interesting. So basically you can only get a CARES loan (PPP, EIDL, Main Street) right now, or go private.

I'm seeing an interesting trend on the personal side too. It's become incredibly hard (if not impossible) to consolidate credit across multiple banks or open a personal line of credit.

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2204 on: August 02, 2020, 08:58:30 PM »
I know this is a complex topic, but hoping to get some insight here.
I was a sole prop in 2019, opened entity in 2020. Didn't realize until recently that I might actually be eligible for PPP (thought payroll was required).
If business did not lose any money at all from Covid, I shouldn't apply? What exactly must be signed?

Offline yossig

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2205 on: August 02, 2020, 08:59:38 PM »
i got thru. seems they approved and then denied my loan at the last second. should i try and appeal?!
Definitely nothing to loss,

Offline skv

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2206 on: August 03, 2020, 02:45:14 PM »
Where to apply for PPP loan for an LLC that files taxes as a partnership (K-1)?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2207 on: August 03, 2020, 02:52:10 PM »
I know this is a complex topic, but hoping to get some insight here.
I was a sole prop in 2019, opened entity in 2020. Didn't realize until recently that I might actually be eligible for PPP (thought payroll was required).
If business did not lose any money at all from Covid, I shouldn't apply? What exactly must be signed?

The prevailing sentiment here is that if your loan is less than 2MM (which as a sole prop it will be) you can apply with no financial hardship.
This part depends on the bank but you'll most likely need to do a draft Schedule C based on Jan and Feb of 2020, and then divide by 2 to get your average monthly "payroll".

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2208 on: August 03, 2020, 02:52:34 PM »
Where to apply for PPP loan for an LLC that files taxes as a partnership (K-1)?
BlueVine is a hit or miss with a K-1.
Kabbage should be good.

Offline skv

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2209 on: August 03, 2020, 02:58:11 PM »
BlueVine is a hit or miss with a K-1.
Kabbage should be good.

Not sure why Kabbage is giving me an error when it tries to calculate loan amount

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2210 on: August 03, 2020, 03:11:40 PM »
Not sure why Kabbage is giving me an error when it tries to calculate loan amount
How is the question phrased exactly?

Offline skv

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2211 on: August 03, 2020, 03:14:53 PM »
How is the question phrased exactly?

It asks if I file a form w3. I don't have payroll so I think the answer is no. Then it tells me that there was an error calculating my loan amount and if the error persists I should call the support line

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2212 on: August 03, 2020, 03:27:44 PM »
It asks if I file a form w3. I don't have payroll so I think the answer is no. Then it tells me that there was an error calculating my loan amount and if the error persists I should call the support line

Not sure then.
I was thinking maybe you had an issue with the "monthly payroll" question. Lots of applicants seem unsure what that amount should be if they don't have monthly payroll (it should be 2019 owner net income divided by 12) but doesn't look like that's your issue.

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2213 on: August 03, 2020, 03:39:07 PM »
The prevailing sentiment here is that if your loan is less than 2MM (which as a sole prop it will be) you can apply with no financial hardship.
This part depends on the bank but you'll most likely need to do a draft Schedule C based on Jan and Feb of 2020, and then divide by 2 to get your average monthly "payroll".

Interesting, I didn't realize that.
Isn't the simple way to go off of 2019 numbers?
I actually averaged quite a bit more in Jan-Feb 2020 than my monthly average in 2019, but I thought that complicates things, especially since I opened entity in 2020. I'm worried about risking something more complicated, because if I get denied, I'll miss the deadline and won't be able to apply again.
What do you say? And which bank would you recommend I use?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2214 on: August 03, 2020, 04:20:56 PM »
Interesting, I didn't realize that.
Isn't the simple way to go off of 2019 numbers?
I actually averaged quite a bit more in Jan-Feb 2020 than my monthly average in 2019, but I thought that complicates things, especially since I opened entity in 2020. I'm worried about risking something more complicated, because if I get denied, I'll miss the deadline and won't be able to apply again.
What do you say? And which bank would you recommend I use?

Sorry I misread your post... thought you opened your businesses in late 2019.
If it's different entities and the one in 2019 is no longer in operation, and only the one in 2020 is you might need to apply based on 2020 (I'm not sure about a sole prop that is technically always in operation). If they're the same entity (same EIN) you should apply using 2019.

My go-to bank rec is BlueVine (other than K-1 1065) and Kabbage.
Note that BlueVine will give you an answer within an hour or two so no need to worry about getting any closer to the deadline.

Wondering about the legality/possibility of applying for both entities (if they are indeed separate entities).
If you receive the max $20,833 from one entity there's no point in going for both, but if you don't receive the max perhaps it might be accepted practice (just like if someone had two separate Schedule Cs in 2019 for different entities). Not 100% sure on this...

Offline Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2215 on: August 03, 2020, 04:27:47 PM »
any way to get eidl loan docs available? been approved for 1.5 weeks but no docs yet
#TYH

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2216 on: August 03, 2020, 04:31:02 PM »
any way to get eidl loan docs available? been approved for 1.5 weeks but no docs yet
Average current wait time from approval to loan docs currently seems to be about 3 weeks.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2217 on: August 03, 2020, 05:15:02 PM »
Can someone with Household income HSH apply for a PPP loan without schedule C, only tax return? Anyone with actual approval?

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2218 on: August 03, 2020, 05:23:46 PM »
Sorry I misread your post... thought you opened your businesses in late 2019.
If it's different entities and the one in 2019 is no longer in operation, and only the one in 2020 is you might need to apply based on 2020 (I'm not sure about a sole prop that is technically always in operation). If they're the same entity (same EIN) you should apply using 2019.

My go-to bank rec is BlueVine (other than K-1 1065) and Kabbage.
Note that BlueVine will give you an answer within an hour or two so no need to worry about getting any closer to the deadline.

Wondering about the legality/possibility of applying for both entities (if they are indeed separate entities).
If you receive the max $20,833 from one entity there's no point in going for both, but if you don't receive the max perhaps it might be accepted practice (just like if someone had two separate Schedule Cs in 2019 for different entities). Not 100% sure on this...

Happy to hear BlueVine is so quick, I'll definitely try that first.
It's really the same business I'm operating, I just went from operating it as a sole prop in 2019 to running it through an entity in 2020.
What makes this question even more complicated is that:
  • I chose to be taxed as an s corp, and I have not yet done any payroll (so I technically wasn't paid in January or February)
  • I actually only opened the entity in March, though I am reimbursing the business for January and February income, and planning to just count all 2020 income through the business

What you say?
(BTW, are you an accountant? Something else? Clearly very knowledgeable in this :))

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2219 on: August 03, 2020, 05:31:46 PM »
Happy to hear BlueVine is so quick, I'll definitely try that first.
It's really the same business I'm operating, I just went from operating it as a sole prop in 2019 to running it through an entity in 2020.
What makes this question even more complicated is that:
  • I chose to be taxed as an s corp, and I have not yet done any payroll (so I technically wasn't paid in January or February)
  • I actually only opened the entity in March, though I am reimbursing the business for January and February income, and planning to just count all 2020 income through the business

What you say?
(BTW, are you an accountant? Something else? Clearly very knowledgeable in this :))

S corp owners are not eligible for PPP if they do not pay themselves a payroll (and don't have your accountant call up and yell at me but legally you must take a 'reasonable' payroll...), this simplifies matters because you can only apply as a sole prop based on your 2019 Schedule C without worrying about the new entity.
It's also best if you fund it into whatever bank account you used for the sole prop and not into the S corp bank account if it has its own. Best not to create confusion and links between the two entities.

I'm not an accountant- my background is in finance. Thanks for the kind words :).