Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable) (Read 545982 times)

ShimshonK · « **Reply #3400 on:** March 14, 2021, 07:41:13 PM »

Quote from: YitzyS on March 14, 2021, 07:37:38 PM

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.

Wasn't that what the reports have been indicating would happen?

YitzyS · « **Reply #3401 on:** March 14, 2021, 07:48:20 PM »

Quote from: ShimshonK on March 14, 2021, 07:41:13 PM

Wasn't that what the reports have been indicating would happen?

It's different if banks say that can't handle changes than if the SBA says, "Sorry, you don't deserve money because you were desperate enough to file for PPP right away."

AsherO · « **Reply #3402 on:** March 14, 2021, 07:49:47 PM »

Quote from: YitzyS on March 14, 2021, 07:37:38 PM

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.

Well, technically it takes a while until loans show as disbursed on e-Tran, so technically some people might be able to cancel/return their PPP and apply again, but that’s risky.

ShimshonK · « **Reply #3403 on:** March 14, 2021, 08:05:01 PM »

Quote from: AsherO on March 14, 2021, 07:49:47 PM

Well, technically it takes a while until loans show as disbursed on e-Tran, so technically some people might be able to cancel/return their PPP and apply again, but that’s risky.

What about people that received first round loan based on 2019 payroll... nothing has changed that would allow them to somehow now get based on 2020 payroll, right?

TBD · « **Reply #3404 on:** March 14, 2021, 08:16:50 PM »

Quote from: YitzyS on March 14, 2021, 07:48:20 PM

It's different if banks say that can't handle changes than if the SBA says, "Sorry, you don't deserve money because you were desperate enough to file for PPP right away."

The same rationale as why a business that ended the year with $4M profit was eligible for PPP2 because in Q2 of 2019 they had a 25% revenue reduction, while the business who ended the year with $4M loss but only had a 24% reduction in revenue is not eligible

Traveler718 · « **Reply #3405 on:** March 14, 2021, 09:20:23 PM »

Quote from: cgr on March 14, 2021, 05:49:12 PM

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.

When can you begin counting the 6.5 weeks - the day you applied, the day you got an Etran # (and if so, how do I found out this date?), the day you were approved, or the day you actually received the money in your account?

And do you need to wait the full 6.5 weeks from that date before you apply for 2nd draw, or can you apply for 2nd draw now and just wait to actually accept the loan until after 6.5 weeks have passed?

cgr · « **Reply #3406 on:** March 14, 2021, 09:24:16 PM »

Quote from: Traveler718 on March 14, 2021, 09:20:23 PM

When can you begin counting the 6.5 weeks - the day you applied, the day you got an Etran # (and if so, how do I found out this date?), the day you were approved, or the day you actually received the money in your account?

And do you need to wait the full 6.5 weeks from that date before you apply for 2nd draw, or can you apply for 2nd draw now and just wait to actually accept the loan until after 6.5 weeks have passed?

From the day you received funding.

You can apply before 6.5 weeks, but you can't get the Second Draw deposit til 6.5 weeks have passed.

YesThatsMe · « **Reply #3407 on:** March 15, 2021, 09:51:35 AM »

@cgr Biz2Credit is paused this morning for apps, any insight as to when it will reopen?

cgr · « **Reply #3408 on:** March 15, 2021, 10:54:12 AM »

Quote from: YesThatsMe on March 15, 2021, 09:51:35 AM

@cgr Biz2Credit is paused this morning for apps, any insight as to when it will reopen?

PM me- I can get you in.

David101 · « **Reply #3409 on:** March 15, 2021, 12:42:38 PM »

Quote from: cgr on March 14, 2021, 09:24:16 PM

From the day you received funding.

You can apply before 6.5 weeks, but you can't get the Second Draw deposit til 6.5 weeks have passed.

Does the 1st loan status need to show closed/forgiven to get the 2nd draw?

cgr · « **Reply #3410 on:** March 15, 2021, 12:50:42 PM »

Quote from: David101 on March 15, 2021, 12:42:38 PM

Does the 1st loan status need to show closed/forgiven to get the 2nd draw?

Forgiveness is not required to receive Second Draw.

cgr · « **Reply #3411 on:** March 15, 2021, 01:35:00 PM »

Quote from: TBD on March 14, 2021, 03:22:43 AM

WOW!!!

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

For those wondering, Form 1502 must be filed by the bank within 10 days of fund disbursement.
https://home.treasury.gov/system/files/136/Updated-Guidance-PPP-Lender-Processing-Fee-Payment-1502-Reporting-Process.pdf

AsherO · « **Reply #3412 on:** March 15, 2021, 01:36:29 PM »

Quote from: cgr on March 15, 2021, 01:35:00 PM

For those wondering, Form 1502 must be filed by the bank within 10 days of fund disbursement.
https://home.treasury.gov/system/files/136/Updated-Guidance-PPP-Lender-Processing-Fee-Payment-1502-Reporting-Process.pdf

Do the banks comply with that timeline stricter than they comply with the requirement to fund within 10 days?

ExGingi · « **Reply #3413 on:** March 15, 2021, 02:04:40 PM »

Thanks @cgr biz2credit seem to be working at warp speed. Got two second draw PPP loans approved. Will now try to see if I can get 1st and 2nd draw on time for one more business.

JuryDuty · « **Reply #3414 on:** March 15, 2021, 08:31:54 PM »

I assumed I wasn't eligible for round 2 but I figured I'd make sure as the window closes.

I am self-employed on a 1099 and got the 1k grant in round 1. I assumed I wasn't eligible for round 2 because I don't have expenses for that 1099. Can I use my home rental to count as expenses to say I used the first grant? Is there any other way out, or the lack of work expenses dictates I am motivated eligible for round 2?

Mordyk · « **Reply #3415 on:** March 15, 2021, 08:40:43 PM »

Which banks are still accepting ppp2?

cgr · « **Reply #3416 on:** March 15, 2021, 08:43:24 PM »

Quote from: JuryDuty on March 15, 2021, 08:31:54 PM

I assumed I wasn't eligible for round 2 but I figured I'd make sure as the window closes.

I am self-employed on a 1099 and got the 1k grant in round 1. I assumed I wasn't eligible for round 2 because I don't have expenses for that 1099. Can I use my home rental to count as expenses to say I used the first grant? Is there any other way out, or the lack of work expenses dictates I am motivated eligible for round 2?

When did you get Round 1?

JuryDuty · « **Reply #3417 on:** March 15, 2021, 08:46:25 PM »

Quote from: cgr on March 15, 2021, 08:43:24 PM

When did you get Round 1?

The sba deposit was in july

cgr · « **Reply #3418 on:** March 15, 2021, 09:00:03 PM »

Quote from: JuryDuty on March 15, 2021, 08:46:25 PM

The sba deposit was in july

Then you're eligible for round 2 if you had a 25% decrease in sales/gross income, plus you can now base it off line 7 if that's beneficial.
You don't need any expenses- as sole prop the full thing is forgivable as owner compensation, meaning you can take it all for yourself.

Any chance you're confusing it with EIDL 1k grant? An amount of exactly 1k is usually EIDL.
Did you apply through a bank or through the SBA?

JuryDuty · « **Reply #3419 on:** March 15, 2021, 09:06:27 PM »

Quote from: cgr on March 15, 2021, 09:00:03 PM

Then you're eligible for round 2 if you had a 25% decrease in sales/gross income, plus you can now base it off line 7 if that's beneficial.
You don't need any expenses- as sole prop the full thing is forgivable as owner compensation, meaning you can take it all for yourself.

Any chance you're confusing it with EIDL 1k grant? An amount of exactly 1k is usually EIDL.
Did you apply through a bank or through the SBA?

Oh wow. And 2.5x is based on the income from 2019 divided by 12?