Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 532764 times)

Offline LAX_Esq

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2440 on: December 21, 2020, 05:40:09 PM »
The new bill allows for complete forgiveness of PPP loans without subtraction of the EIDL amount. Why do the forgiveness now, right? Might as well wait until the new bill goes through and banks revise their processes.

Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2441 on: December 21, 2020, 06:44:19 PM »
Can someone clarify this for me. If I already got PPP, can I get it again after this bill? Or is this bill just for those who didn't get it the last time around?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2442 on: December 21, 2020, 06:47:01 PM »
Can someone clarify this for me. If I already got PPP, can I get it again after this bill? Or is this bill just for those who didn't get it the last time around?

You are eligible for another round if you can show losses of 25% YoY for any quarter of 2020, and maybe some other qualifiers.
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Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2443 on: December 21, 2020, 06:50:09 PM »
You are eligible for another round if you can show losses of 25% YoY for any quarter of 2020, and maybe some other qualifiers.
Okay, thanks!

So basically, if I'm a sole props, and I tally my invoices for one quarter of 2020 and it's 25 percent less than my invoices for the same quarter a year earlier, I can apply for round 2?

Offline LAX_Esq

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2444 on: December 21, 2020, 06:53:26 PM »
You are eligible for another round if you can show losses of 25% YoY for any quarter of 2020, and maybe some other qualifiers.

I've read the same in media reports, but I tried looking and haven't seen any article where the details are spelled out beyond what you said.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2445 on: December 21, 2020, 06:56:54 PM »
I've read the same in media reports, but I tried looking and haven't seen any article where the details are spelled out beyond what you said.
I read through the bill ;)

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2446 on: December 21, 2020, 07:06:00 PM »
I've read the same in media reports, but I tried looking and haven't seen any article where the details are spelled out beyond what you said.

Username doesn’t check out.... :P
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Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2447 on: December 21, 2020, 07:13:39 PM »
Okay, thanks!

So basically, if I'm a sole props, and I tally my invoices for one quarter of 2020 and it's 25 percent less than my invoices for the same quarter a year earlier, I can apply for round 2?

I’m not sure how the 25% will be determined, but based on the first round(s) of PPP:
1. SBA will issue guidelines that’ll direct how it’ll be determined
2. Your PPP lender will interpret those guidelines and actual requirements/process will vary from one lender to another.
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Offline LAX_Esq

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2448 on: December 21, 2020, 07:38:25 PM »
Username doesn’t check out.... :P

I read through the bill ;)

You couldn't pay me enough to read the bill ;) Seriously, I've been around law long enough to know to not reinvent the wheel and to wait for the big firms to prepare their analyses / client guidance. They understand all the intricacies and nuances of this stuff.

I’m not sure how the 25% will be determined, but based on the first round(s) of PPP:
1. SBA will issue guidelines that’ll direct how it’ll be determined
2. Your PPP lender will interpret those guidelines and actual requirements/process will vary from one lender to another.

So, the bill doesn't specify how the 25% drop is determined? I guess this is just as "wild west" as in May and we'll have to wait for 10 different drafts of regs to get a handle on this.

Will companies who meet the 25% drop in revenues be eligible for the exact same amount of a PPP loan as they were the first time based on same the eligibility criteria that was used last time? That part isn't clear to me, either.

Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2449 on: December 21, 2020, 07:41:37 PM »
I read through the bill ;)
People may think you are crazy, but if J.K. Rowling would print a Harry Potter that is that long, there would be millions of people reading it faster than you are reading that stimulus bill.

Offline Deal Guy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2450 on: December 21, 2020, 07:43:30 PM »
Do you need to get forgiveness in the first loan before applying for the 2nd?

Offline LAX_Esq

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2451 on: December 21, 2020, 07:47:58 PM »
Do you need to get forgiveness in the first loan before applying for the 2nd?

I don't think so. For the first loan, forgiveness and loan eligibility were different criteria. You're not obligated to apply for forgiveness at all.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2452 on: December 21, 2020, 07:55:51 PM »
Do you need to get forgiveness in the first loan before applying for the 2nd?

Actually certain things in the new bill are only available to those that did not receive forgiveness:
Additions to 'covered costs' definition (not relevant if you received 100% forgiveness)
Increase to previous loan if the full amount was not received previously (not relevant if you received the full amount you were eligible for)

Offline rookie27

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2453 on: December 21, 2020, 08:31:51 PM »
Im trying to apply for PPP forgiveness through "Scratch"
Anyone have any experience with this?
It says im eligible for form 35083 but doesnt take me to the form...
Also its asking for documents? (im a sole prop)
Any help is appreciated!!

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2454 on: December 21, 2020, 10:17:11 PM »
For those interested in Round 2 or Round 1 changes, details in my signature block below.

Offline helpusout

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2455 on: December 22, 2020, 12:10:26 PM »
Actually certain things in the new bill are only available to those that did not receive forgiveness:
Additions to 'covered costs' definition (not relevant if you received 100% forgiveness)
Increase to previous loan if the full amount was not received previously (not relevant if you received the full amount you were eligible for)

I just received the loan forgiveness documents from my first round PPP.
Are you suggesting that I wait to submit for forgiveness until after some of the dust settles on this bill?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2456 on: December 22, 2020, 12:20:23 PM »
I just received the loan forgiveness documents from my first round PPP.
Are you suggesting that I wait to submit for forgiveness until after some of the dust settles on this bill?
Only if the two points above pertain to you, or if you prefer the simplified form that won't require documentation submissions.

Offline helpusout

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2457 on: December 22, 2020, 12:34:04 PM »
Only if the two points above pertain to you, or if you prefer the simplified form that won't require documentation submissions.

Can I use the simpler form for round 1 PPP forgiveness? Under 150K?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2458 on: December 22, 2020, 12:39:32 PM »
Can I use the simpler form for round 1 PPP forgiveness? Under 150K?

Correct, if your first round is under $150k you can have it forgiven using a one-page form. It’s gonna take a bit for the SBA to interpret the law into a procedure and guidance for single-page simplified forgiveness.
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Offline LAX_Esq

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2459 on: December 22, 2020, 02:35:34 PM »
Correct, if your first round is under $150k you can have it forgiven using a one-page form. It’s gonna take a bit for the SBA to interpret the law into a procedure and guidance for single-page simplified forgiveness.

If your first round is under $50K, is anything changing other than the EDIL not being deducted? Under $50K, you can already use the one-page form. Is there any change in the documentation required?