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

[S209]

SBA has started approving EIDL Targeted applications- you can check your SBA portal- status will change to "Approved".
Now let's see who gets funded first...

Mine still says submitted

[AsherO]

Mine still says submitted

Likewise. It’ll take some time...

[cgr]

The SBA hasn't allowed banks to submit Second Draw applications for First Draw received in 2021. Update pending.
No update on extending the deadline yet.

The SBA has started processing Second Draw applications for those that received First Draw in 2021.

[shapsam]

All SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 24-months from the date of the note.
All SBA disaster loans made in calendar year 2021, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.

https://www.globenewswire.com/news-release/2021/03/12/2192344/0/en/SBA-Extends-Deferment-Period-for-all-COVID-19-EIDL-and-Other-Disaster-Loans-until-2022.html

[AsherO]

All SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 24-months from the date of the note.
All SBA disaster loans made in calendar year 2021, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.

https://www.globenewswire.com/news-release/2021/03/12/2192344/0/en/SBA-Extends-Deferment-Period-for-all-COVID-19-EIDL-and-Other-Disaster-Loans-until-2022.html

But interest still accrues on EIDL. If they’re taking off another year shouldn’t monthly payment amount go up for those who are waiting until it’s due?

[TBD]

The new bill expanded the definition of the max 500 employees to be eligible for PPP, it should be per location not per company. You can expect a lot of 10M approvals soon, drying up a lot of the funding available

[cgr]

The new bill expanded the definition of the max 500 employees to be eligible for PPP, it should be per location not per company. You can expect a lot of 10M approvals soon, drying up a lot of the funding available

Only for certain non profits. Doesn't apply to most.

[TBD]

Only for certain non profits. Doesn't apply to most.

Correct. Only for those who paid the right lobbyist. But I know 1 such org locally, as so I believe there is more than 1.

[TBD]

WOW!!!

https://www.sba.gov/sites/default/files/2021-03/PPP-FAQs-3.12.21.pdf

66. Question: On March 3, 2021, SBA posted Interim Final Rule “Revisions to Loan
Amount Calculation and Eligibility” allowing Schedule C filers to use gross income to
calculate PPP loan amounts. What options do lenders have to assist Schedule C filers
who already submitted a PPP loan application to use gross income to calculate their PPP
loan amount?74
Answer: The options available to lenders depend on the status of the PPP loan
application.
• If the lender has not submitted a loan guaranty application for the Schedule C
applicant who wishes to use gross income to calculate their loan amount, the
applicant must submit to the lender SBA Form 2483-C for a First Draw PPP Loan
or SBA Form 2483-SD-C for a Second Draw PPP Loan, and the lender then must
submit a loan guaranty application to SBA through the Paycheck Protection
Platform (Platform) using SBA Form 2484 (Revised 3/21) for a First Draw PPP
Loan or SBA Form 2484-SD (Revised 3/21) for a Second Draw PPP Loan.
• If the lender has submitted a loan guaranty application to the Platform and the
loan guaranty application has not yet been approved, the lender may withdraw the
loan guaranty application from the Platform, and resubmit a loan guaranty
application after receipt from the applicant of SBA Form 2483-C for a First Draw
PPP Loan or SBA Form 2483-SD-C for a Second Draw PPP Loan. The lender
must use SBA Form 2484 (Revised 3/21) for a First Draw PPP Loan or SBA
Form 2484-SD (Revised 3/21) for a Second Draw PPP Loan when resubmitting
the loan guaranty application.
• If SBA has issued a loan number, but the loan has not yet been disbursed, the
lender may cancel the loan in E-Tran Servicing and the applicant may apply for a
new loan using SBA Form 2483-C for a First Draw PPP Loan or SBA Form
2483-SD-C for a Second Draw PPP Loan.
• If the lender has disbursed the loan but has not filed the related Form 1502 Report
reporting disbursement of the loan, the applicant must repay the PPP loan in full,
the lender must cancel the loan in E-Tran Servicing, and the applicant may apply
for a new loan using SBA Form 2483-C for a First Draw PPP Loan or SBA Form
2483-SD-C for a Second Draw PPP Loan.
• If the lender has disbursed the loan and filed the related Form 1502 Report
reporting disbursement of the loan, no changes can be made to the loan amount
calculation.
Note: Loans must be canceled in E-Tran Servicing (not in the Platform). The Platform
may take up to 2 days to reflect the actions in E-Tran Servicing. Lender cannot enter a
new loan guaranty application until the Platform recognizes the prior loan’s cancellation

[S209]

Nonprofits who received a (first draw) PPP loan of under 150K can apply for forgiveness with just a form 3508S?

[David101]

The SBA has started processing Second Draw applications for those that received First Draw in 2021.

Is 8 week waiting period required before u can apply for second draw?

[cgr]

Is 8 week waiting period required before u can apply for second draw?

If you use only 60% for owner compensation/payroll, and you use 40% for eligible expenses during that time, you can cut it down to 6.5 weeks.

[Yef]

Is someone who owns a 2 family investment property eligible for ppp or eidl?

[cgr]

Is someone who owns a 2 family investment property eligible for ppp or eidl?

Regarding PPP:
A) do they do the "management"
B) is it reported on Schedule C or K1 1065 as non-passive income? Schedule E and K1 1065 passive are not eligible.

[Yef]

 ;Looks like schedule E. Should I file it differently for 2020 to recieve ppp is it worth it. Yes I do the management.

[cgr]

;Looks like schedule E. Should I file it differently for 2020 to recieve ppp is it worth it. Yes I do the management.

Talk to your accountant...
SE tax is 15% and one round of PPP is 20%.
If you can get both (pending 5/31 extension) then it makes a lot more sense.

[Yef]

SE tax?

[cgr]

SE tax?

Self-employment tax which is double FICA (SS and Med).

[ShimshonK]

WOW!!!

https://www.sba.gov/sites/default/files/2021-03/PPP-FAQs-3.12.21.pdf

Can you summarize in your own words what this is saying?

[YitzyS]

Can you summarize in your own words what this is saying?

Basically, most people who already got PPP based on their net income have no option to get the difference between that and their gross income.