SBA PPP and EIDL Small Business Loans (some money is forgivable)

[JMHO]

Yes, but as per forum rules I can't share- in fact this conversation in itself might be a violation of the rules .

Booo

You earned every person who uses your affiliate. Your cheerful assistance and selfless sharing of your knowledge of Covid-19 program information has been invaluable to so many DDFers.

[Yehudaa]

Booo

and...

BANNED! 

[cgr]

Was there guidance released today by sba regarding ppp and eidl?
Is there a link to the guidance?

Only in relation to PPP.
https://home.treasury.gov/system/files/136/PPP-IFR-Second-Draw-Loans.pdf
https://home.treasury.gov/system/files/136/PPP-IFR-Paycheck-Protection-Program-as-Amended-by-Economic-Aid-Act.pdf

[ShimshonK]

Here's a screenshot from LinkedIn

[cgr]

Here's a screenshot from LinkedIn

I disagree with #7

[shapsam]

Here's a screenshot from LinkedIn

For #3, how can you use your 2019 payroll costs if in #2 it's either 2020 calendar year or 12 months before date of application?

#7 I think he's wrong, it means that PPP loan is not counted in gross receipts even if it was already forgiven, if it's not forgiven then it's a loan which is not revenue.

[cgr]

For #3, how can you use your 2019 payroll costs if in #2 it's either 2020 calendar year or 12 months before date of application?

#7 I think he's wrong, it means that PPP loan is not counted in gross receipts even if it was already forgiven, if it's not forgiven then it's a loan which is not revenue.

#2 is supposed to say 2019, 2020, or 12 months prior
Re #7 correct- loans are never gross receipts

[oldguy]

How would I prove revenue loss when getting PPP on my schedule C?
If my 1099 in 2020 is 25% less than 2019, would that be enough?

[Deal Guy]

Most notably, the SBA said it will accept PPP loan applications only from community financial institutions for at least the first two days when the PPP loan portal reopens.


What are examples of a community financial institution?

What is Cross River bank considered?

[cgr]

How would I prove revenue loss when getting PPP on my schedule C?
If my 1099 in 2020 is 25% less than 2019, would that be enough?

Either that, or if it's only less in one quarter but not as a whole you can provde a financial statement (p&l or sales report) or bank statement as proof.

[oldguy]

Either that, or if it's only less in one quarter but not as a whole you can provde a financial statement (p&l or sales report) or bank statement as proof.

TY very much, what if there is no 1099 in 2020 from that business and no schedule C, should be the same. no?

[cgr]

TY very much, what if there is no 1099 in 2020 from that business and no schedule C, should be the same. no?

You must have been in operation as of 2/15/20. "In operation" is defined as something that could be proven like invoices, bank statements, etc. (Which in turn should generate a Schedule C)

[cgr]

You must have been in operation as of 2/15/20. "In operation" is defined as something that could be proven like invoices, bank statements, etc. (Which in turn should generate a Schedule C)

Let me expand on this- obviously if you have a 2019 Schedule C you were in operation prior to Feb 15 2020. Now the question becomes are you still in operation? Businesses that have permanently closed are not eligible for PPP.

[oldguy]

Let me expand on this- obviously if you have a 2019 Schedule C you were in operation prior to Feb 15 2020. Now the question becomes are you still in operation? Businesses that have permanently closed are not eligible for PPP.

My wife got paid for the year 2019 from a business that she's not employed anymore. For the year 2020 she will get a 1099 from another business that's much less than 2019. would that work?

Also somebody that didn't claim PPP in round 1, can they claim now twice? I would think not, just making sure...

Thank you for all your answers!

[cgr]

My wife got paid for the year 2019 from a business that she's not employed anymore. For the year 2020 she will get a 1099 from another business that's much less than 2019. would that work?

Also somebody that didn't claim PPP in round 1, can they claim now twice? I would think not, just making sure...

Thank you for all your answers!

Yes, that counts. Both 1099s generate a Schedule C in her name, so she good to go.

For First Draw and then Second it's not 100% clear yet, but banks are of the opinion that you can go for First Draw, then spend all the funds over 8 weeks (minimum covered period) and then go for Second Draw.
Remember: to be eligible for Second Draw you must have used all First Draw funds (even if it's not yet forgiven).

[oldguy]

Yes, that counts. Both 1099s generate a Schedule C in her name, so she good to go.

For First Draw and then Second it's not 100% clear yet, but banks are of the opinion that you can go for First Draw, then spend all the funds over 8 weeks (minimum covered period) and then go for Second Draw.
Remember: to be eligible for Second Draw you must have used all First Draw funds (even if it's not yet forgiven).

Thank you for your answers!

[skv]

Yes, that counts. Both 1099s generate a Schedule C in her name, so she good to go.

For First Draw and then Second it's not 100% clear yet, but banks are of the opinion that you can go for First Draw, then spend all the funds over 8 weeks (minimum covered period) and then go for Second Draw.
Remember: to be eligible for Second Draw you must have used all First Draw funds (even if it's not yet forgiven).

For self-employed, what is considered having "used" the funds? When you pay yourself is that considered using it, or you have to pay yourself and actually spend the money?

[cgr]

For self-employed, what is considered having "used" the funds? When you pay yourself is that considered using it, or you have to pay yourself and actually spend the money?

Getting it is pretty much considered having used it- remember it's the one entity where there's no differentiation between business and personal so even if you do "pay" yourself (which is not an SBA requirement) it still makes no material difference, unlike all other entity types.
Note: That does not mean that the SBA will recognize a Covered Period of less than 8 weeks- they won't.

[cgr]

Most notably, the SBA said it will accept PPP loan applications only from community financial institutions for at least the first two days when the PPP loan portal reopens.


What are examples of a community financial institution?

What is Cross River bank considered?

Community development financial institutions (CDFIs) are private financial institutions that are 100% dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream.
https://ofn.org/cdfi-locator

[Deal Guy]

Community development financial institutions (CDFIs) are private financial institutions that are 100% dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream.
https://ofn.org/cdfi-locator

So is it saying that let's say ppp loans open on Monday, most banks like Cross River, will need to wait until Wednesday to start approving applications?