Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 197569 times)

Online ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2360 on: August 28, 2020, 12:40:42 PM »
Client got an EIDL Decline due to not showing a economic injury.

How did they come up with that? the application is only asking for Sales and COGS?

Indeed. I only saw Sales and COGS questions there. Didn't notice anything about economic injury. Did I miss something?
I've been waiting over 5 years with bated breath for someone to say that!
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2361 on: August 28, 2020, 12:46:32 PM »
Indeed. I only saw Sales and COGS questions there. Didn't notice anything about economic injury. Did I miss something?
There is an Economic Injury question for lost rents but those who filled it in shot themselves in the foot because the SBA gave them that amount only as their loan.

Offline Abe100

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2362 on: August 29, 2020, 11:52:55 PM »
If his credit is below 570 don't bother because they won't approve him anyway.

Is there a way to add a partner to the business with good credit?

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2363 on: September 06, 2020, 03:21:21 PM »
Any advice when a sole prop should apply for forgiveness?
Just wait it out for now?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2364 on: September 06, 2020, 03:31:36 PM »
Any advice when a sole prop should apply for forgiveness?
Just wait it out for now?
It might depend on the bank.
From what I've seen from BofA, they only allow you to apply once your covered period is over even if you used up all the funds before that (per SBA rules you can apply once you've used up the funds).

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2365 on: September 07, 2020, 09:45:03 PM »
It might depend on the bank.
From what I've seen from BofA, they only allow you to apply once your covered period is over even if you used up all the funds before that (per SBA rules you can apply once you've used up the funds).
Kabbage.
Even if applying for forgiveness is allowed, might be worth waiting since they might pass law auto-forgiving e/t under $250k I think.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2366 on: September 08, 2020, 12:11:12 AM »
@Exgingi if you didnt enter correct your total revenue and COGS it could result in getting a denial of Economic injury not enough

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2367 on: September 08, 2020, 12:46:53 PM »
We got denied for EIDL, due to entering the wrong "nature of business" in the application. We appealed the decision. Anyone know how long it takes, I get vague answers when I call. I have info/ documents to back it up, but it seems theres noone to talk to. Its been over a month..

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2368 on: September 08, 2020, 12:51:05 PM »
Kabbage.
Even if applying for forgiveness is allowed, might be worth waiting since they might pass law auto-forgiving e/t under $250k I think.
150k, but looking less and less likely- talks of stimulus have pretty much ceased.

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2369 on: September 08, 2020, 01:42:43 PM »
talks of stimulus have pretty much ceased.
Seems like there was a bit of news on that front today, but I'm not following so closely.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2370 on: September 08, 2020, 01:48:42 PM »
Seems like there was a bit of news on that front today, but I'm not following so closely.
Republicans put together a mini package but the Dems swore they won't even look at it.
The saving grace might be forced negotiations to prevent a shutdown where the Rs might use it to negotiate for something the Ds want.

Offline justaregularguy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2371 on: September 23, 2020, 12:23:56 PM »
this is insane. I must have gotten 10 phone calls regarding completing my application which I already told to close! they even said they'll put a note on the case and not to call. I'm going to be hearing from them on my death bed at 120.  >:(
nothings impossible- the word itself says Im possible

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2372 on: October 12, 2020, 02:50:51 PM »
The SBA released a simplified forgiveness application with easier forgiveness rules for loans of 50k or less.

https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S.pdf
https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S-Instructions.pdf

Writeup in my signature block below.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2373 on: October 12, 2020, 03:32:13 PM »
Stupidity plus bad mazal makes for an hilarious EIDL fraud case...
https://www.justice.gov/usao-edny/press-release/file/1326036/download

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2374 on: October 12, 2020, 03:43:26 PM »
Stupidity plus bad mazal makes for an hilarious EIDL fraud case...
https://www.justice.gov/usao-edny/press-release/file/1326036/download

Not that I think there wasn't any fraud, but what would stop one from (possibly illegally) operating a car wash business with a "corporate" or "business address" as the residential address, and actually washing cars on the street at client locations? If he claims to have had 10 employees, his biggest issue would be not paying WC!!!!
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2375 on: October 12, 2020, 03:46:27 PM »
Not that I think there wasn't any fraud, but what would stop one from (possibly illegally) operating a car wash business with a "corporate" or "business address" as the residential address, and actually washing cars on the street at client locations?
This is not the real issue. The real issue is that if you have employees you also have paystubs, W2s, W4s, 940s, 941s, and so on. That's what's missing here.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2376 on: October 12, 2020, 04:06:53 PM »
This is not the real issue. The real issue is that if you have employees you also have paystubs, W2s, W4s, 940s, 941s, and so on. That's what's missing here.

What if you ran a cash car wash business and didnít have any of those filings? Thatís probably a different crime but it doesnít make your car wash business EIDL claim fraudulent.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2377 on: October 12, 2020, 04:27:14 PM »
What if you ran a cash car wash business and didnít have any of those filings? Thatís probably a different crime but it doesnít make your car wash business EIDL claim fraudulent.

That's not an option with W2 employees... you still have to withhold taxes and file all forms... if you claimed on your EIDL application that you have 10 employees and you didn't file these docs, you don't have W2 employees.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2378 on: October 12, 2020, 04:41:57 PM »
That's not an option with W2 employees... you still have to withhold taxes and file all forms... if you claimed on your EIDL application that you have 10 employees and you didn't file these docs, you don't have W2 employees.

You are right, but one can file late, pay penalties etc. etc., none of those come close to the penalties for not having WC in place. So in theory if he would retrospectively try to recreate everything, file late, pay penalties for late filing and late payment, those things might save his skin, but once you bring in the fact that he didn't pay WC (especially on a manual labor type of business like this), the fines will be so astronomical that I think he would choose any other alternative.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2379 on: October 13, 2020, 12:00:43 AM »
The SBA released a simplified forgiveness application with easier forgiveness rules for loans of 50k or less.

https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S.pdf
https://home.treasury.gov/system/files/136/PPP-Loan-Forgiveness-Application-Form-3508S-Instructions.pdf

Writeup in my signature block below.

At this point is it worth applying for forgiveness as a sole prop under 50k (or might they still pass law automatically forgiving)? And, is Kabbage supposed to have some sort of built-in forgiveness application? (Their website has always said "Loan forgiveness next steps are coming soon")
Also, why are they showing the loan balance creeping up (interest is being charged it seems), when first few months were supposed to be 0% interest?