Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 532726 times)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2500 on: December 28, 2020, 12:42:53 PM »
C-corp was incorporated in December 2019, first payroll was in March 2020.

How does that work out?

You're eligible, but if you apply in Jan or Feb your loan will only have 10 or 11 months of payroll divided over 12 months, which will result in a lower monthly average, thereby lowering your eligible loan.
If you wait til March to apply you should have 12 months of payroll and thereby suffer no decrease when dividing by 12.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2501 on: December 28, 2020, 01:40:31 PM »
You're eligible, but if you apply in Jan or Feb your loan will only have 10 or 11 months of payroll divided over 12 months, which will result in a lower monthly average, thereby lowering your eligible loan.
If you wait til March to apply you should have 12 months of payroll and thereby suffer no decrease when dividing by 12.

Just published a preliminary loan calculator- available in my signature block below.
It will help with determining eligibly and loan amounts, and is especially good for scenarios as asked above.

Offline est

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2502 on: December 28, 2020, 02:53:56 PM »
If I did not apply for an EIDL before because the PPP made more sense it it worthwhile now to apply? If I remember correctly some of the money is a grant not a loan?

Offline est

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2503 on: December 28, 2020, 02:54:43 PM »
And thanks @cgr for the calculator! Your services have been invaluable!!

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2504 on: December 28, 2020, 03:03:54 PM »
If I did not apply for an EIDL before because the PPP made more sense it it worthwhile now to apply? If I remember correctly some of the money is a grant not a loan?
The grant program isn't open yet, but once it is if you're eligible (low income community and 30% income reduction in any 8 weeks), you can get a $10k grant- this round won't be based on # of employees (the SBA is also required to reach out to those who got less than $10k, or who applied after the grant was depleted, to see if they are eligible for the new round).

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2505 on: December 28, 2020, 03:05:04 PM »
The grant program isn't open yet, but once it is if you're eligible (low income community and 30% income reduction in any 8 weeks), you can get a $10k grant- this round won't be based on # of employees (the SBA is also required to reach out to those who got less than $10k, or who applied after the grant was depleted, to see if they are eligible for the new round).

Sweet. Hope my community counts as low income...
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Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2506 on: December 28, 2020, 04:38:16 PM »
And thanks @cgr for the calculator! Your services have been invaluable!!

Thanks so much for the calculator.

My 2020 income is much lower than my 2019 income, yet the calculator is recommending ~2020 as my ideal period. Shouldn't it be telling me that average 2019 monthly payroll x2.5 is my ideal period/amount?
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2507 on: December 28, 2020, 04:52:25 PM »
Thanks so much for the calculator.

My 2020 income is much lower than my 2019 income, yet the calculator is recommending ~2020 as my ideal period. Shouldn't it be telling me that average 2019 monthly payroll x2.5 is my ideal period/amount?
There's 2 calculations:
2019 vs 2020 quarterly income to establish eligibility
2019 or 12 month payroll prior to loan application to establish ideal payroll period to use in loan calculation. If your payroll for 12 months prior to your loan application is higher than your 2019 payroll, you want your loan based off that, and not based on 2019 payroll.

Offline oldguy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2508 on: December 28, 2020, 06:41:18 PM »
Sweet. Hope my community counts as low income...
How can I check if it in fact is?

Offline Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2509 on: December 28, 2020, 06:45:37 PM »
Any guidance on ppp for self employed that got last time based off 2019 schedule c?
#TYH

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2510 on: December 28, 2020, 07:18:06 PM »
There's 2 calculations:
2019 vs 2020 quarterly income to establish eligibility
2019 or 12 month payroll prior to loan application to establish ideal payroll period to use in loan calculation. If your payroll for 12 months prior to your loan application is higher than your 2019 payroll, you want your loan based off that, and not based on 2019 payroll.

My 2019 was higher but the calculator recommended my lower 2020 (12 months) number.
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Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2511 on: December 28, 2020, 07:22:04 PM »
Any guidance on ppp for self employed that got last time based off 2019 schedule c?

How is your 2020 schedule C looking? If it’s much worse than 2019 (like mine) and you expect 1st quarter of 2021 to be similar to avg of 2020 quarters, then you can borrow the same as the first round based on your 2019 schedule C. Unless they come out with some other formula for trailing 12-months that’ll make that a better option for you.
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Offline oldguy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2512 on: December 28, 2020, 07:27:06 PM »
How is your 2020 schedule C looking? If it’s much worse than 2019 (like mine) and you expect 1st quarter of 2021 to be similar to avg of 2020 quarters, then you can borrow the same as the first round based on your 2019 schedule C. Unless they come out with some other formula for trailing 12-months that’ll make that a better option for you.
What if 2020 is $0?

Offline Deal Guy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2513 on: December 28, 2020, 07:28:06 PM »
Will you be able to get another 2.5 months of ppp, based on the same 2019 schedule c?
(2020 income will be lower)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2514 on: December 28, 2020, 07:34:23 PM »
My 2019 was higher but the calculator recommended my lower 2020 (12 months) number.
Mind PMing me a screenshot?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2515 on: December 28, 2020, 07:34:35 PM »
What if 2020 is $0?

That’s an easy one, 2019 it is.

Unless you bring in more than the entire 2019 in the first two months of 2021, then your trailing 12 months ending 2/28/21 is the higher option.
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Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2516 on: December 28, 2020, 07:34:56 PM »
Mind PMing me a screenshot?

Will do.
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2517 on: December 28, 2020, 07:37:37 PM »
What if 2020 is $0?
Then you definitely meet the income reduction, and you can get your loan based off 2019 payroll.
The question is though were you "in operation" on 2/15/20?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2519 on: December 28, 2020, 07:44:22 PM »
Does unemployment money count towards income when calculating eligibility?