Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 232627 times)

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2800 on: January 11, 2021, 09:34:46 PM »
There's 0 risk on this.
Dealing with the government includes a lot of risk, if in 6 years from now they will decide to review how a bank processed their loans and that the bank between all those crazy deadlines failed to do the minimal due diligence required, the bank will be fully on the hook + interest and penalties,
Wouldn't be surprised down the road to hear that xxxx bank reached a settlement with federal government for $100,000,000 for PPP failures (without admitting wrongdoing :-*}

Offline lakewood34

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2801 on: January 11, 2021, 09:44:35 PM »
Heard that some banks don't plan to participate at all in PPP2 since it was such a hassle for them especially the forgiveness part. They had to reassign loan officers to deal with this, instead of focusing to bring in new business. It's just not worth for them.

why is the forgiveness more of a hassle then the loan itself?

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2802 on: January 11, 2021, 11:10:37 PM »
but there is hours and hours of work for this.
I mean I'm not offending anyone hopefully, but the clientele on this forum is not from where Chase, is reporting 35 Billion dollars in profit a year, when you have to suddenly shift employees working on those businesses to deal with $20,000 PPP loan, for some banks its just not worth. (And NO! I don't know if Chase will or will not process just an example)
Offending this forum? What does this forum have to do with anything?
Many PPP loans are being taken out in the hundreds of thousands and millions of dollars. And even for the smaller loans, there's massive volume on this. Banks don't only deal with multi-million dollar loans.

In any case, why can't you provide more info and/or provide the source?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2803 on: January 11, 2021, 11:16:02 PM »
When you have limited staff due to covid and you have to assign senior loan officers who usually work on 6-7 digit loans to deal with this, $2,500 is not worth the hassle

About 75% of PPP loans are automated. Loan officers only deal with "problem" loans.
I don't know too much of how this was done in the first round on the backend but I know that for this round many banks built out their system so that it can recognize document uploads and match it up with the loan application. They're not doing this manually.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2804 on: January 12, 2021, 01:56:12 PM »
I have a bank that will process PPP loans for under $1k.
If anyone needs the info, feel free to email me at chaiplus1@gmail.com.

Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2805 on: January 12, 2021, 05:13:44 PM »
Kabbage tweeted out that if you did not get your first PPP loan from them, you should apply elsewhere for your second loan.
Monkeys don't fly unless you put them on airplanes

Offline Hjay

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2806 on: January 12, 2021, 05:18:55 PM »
Assuming you mean that parsonage is recorded on your W2, then it shouldn't be taken into account in relation with PPP, because that's employee compensation and not self-employment compensation.

Now, back to your question:
You need to calculate the 25% reduction on a cash or accrual basis- your Schedule C should have either box checked off on Line F, and based on that you need to make your calculations.
Line 7 on your Schedule C is your gross income, which can be used to calculate your 25% reduction on an annualized basis. If your wife, in aggregate with your income on that line, or on a quarterly basis, meets the 25% reduction, go for it.
If you do not meet the 25% reduction in aggregate, but your wife does meet it separately, then it's a bit harder for me to answer... I'm still waiting for an answer but have received so much conflicting information as to the definition of "affiliate" that I'm reluctant to say anything on the matter.

Any update about husband & wife being considered affiliates in regard to the 25% reduction?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2807 on: January 12, 2021, 05:52:25 PM »
Kabbage tweeted out that if you did not get your first PPP loan from them, you should apply elsewhere for your second loan.

What this means is they might have a streamlined process for 2nd draw (for people using 2019 revenue), I hope this becomes a trend.

Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2808 on: January 12, 2021, 05:54:34 PM »
What this means is they might have a streamlined process for 2nd draw (for people using 2019 revenue), I hope this becomes a trend.
What this also may mean is that banks are not really interested in doing PPP loans if it will take time and effort, as @TBD said.
Monkeys don't fly unless you put them on airplanes

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2809 on: January 12, 2021, 07:25:24 PM »
What this also may mean is that banks are not really interested in doing PPP loans if it will take time and effort, as @TBD said.

Maybe Kabbage can’t scale further, they processed a bleepton of loans the first two rounds.

Offline dovy2

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2810 on: January 12, 2021, 10:32:07 PM »
My loss is 23.5%... should I apply anyways and hope they ease it a bit?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2811 on: January 12, 2021, 10:37:30 PM »
My loss is 23.5%... should I apply anyways and hope they ease it a bit?

Wait for the 22nd/23rd when the Ds are in power.

Offline shapsam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2812 on: January 12, 2021, 10:39:15 PM »
My loss is 23.5%... should I apply anyways and hope they ease it a bit?
1) what matters is gross receipts, not necessarily a "loss".
2) The 25% reduction can be either in a specific quarter in 2020 vs the same quarter in 2019 or the entire year of 2020 vs 2019.

Not sure what you calculated, but many people don't realize this.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2813 on: January 12, 2021, 10:45:06 PM »
1) what matters is gross receipts, not necessarily a "loss".
2) The 25% reduction can be either in a specific quarter in 2020 vs the same quarter in 2019 or the entire year of 2020 vs 2019.

Not sure what you calculated, but many people don't realize this.

Just want to point out that the reason why the annual sales decline is allowed is because you can't have a 25% drop annually if you didn't have at least that (or much more) in a single quarter.

Offline shapsam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2814 on: January 12, 2021, 10:53:55 PM »
Just want to point out that the reason why the annual sales decline is allowed is because you can't have a 25% drop annually if you didn't have at least that (or much more) in a single quarter.
But if the 23.5% reduction is for the year, it is very likely that he hit -25% in one quarter.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2815 on: January 12, 2021, 10:59:27 PM »
But if the 23.5% reduction is for the year, it is very likely that he hit -25% in one quarter.
Correct

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2816 on: January 13, 2021, 12:38:38 AM »
BlueVine says they’ll be accepting PPP applications from existing customers by 1/20 and will have a streamlined technology-driven simplified PPP second-draw application for those who received their first draw from BlueVine.

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2817 on: January 13, 2021, 01:26:04 AM »
What this means is they might have a streamlined process for 2nd draw (for people using 2019 revenue), I hope this becomes a trend.
BlueVine says they’ll be accepting PPP applications from existing customers by 1/20 and will have a streamlined technology-driven simplified PPP second-draw application for those who received their first draw from BlueVine.
Would you mind expounding on what these streamlined applications accomplish?
Is it just that it'll save the borrower some time answering questions and uploading docs that were already answered/uploaded the first time around?
Does it raise the chance of securing the loan?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2818 on: January 13, 2021, 09:05:28 AM »
Would you mind expounding on what these streamlined applications accomplish?
Is it just that it'll save the borrower some time answering questions and uploading docs that were already answered/uploaded the first time around?
Does it raise the chance of securing the loan?

As long as you qualify I can’t see why you’re concerned about securing a loan.

Yes. If they can rely on data/documentation from last time, then it’s less work for you and less work for them.

Offline 123-Rosh

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2819 on: January 13, 2021, 10:53:19 AM »
Why shouldn't we be concerned that there won't be enough funds for everyone who is eligible to get PPP?