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

[ExGingi]

Same for your business location?

The pros and cons of having an office around the corner of my house where no street needs to be crossed...

[TBD]

The business must be active, so go with the one that's currently in operation.

They are going to use your 2019 tax return, how can you file with a 2020 S corp?

[cgr]

They are going to use your 2019 tax return, how can you file with a 2020 S corp?

You qualify if you were in operation as of 1/31/20. There's no requirement to have 2019 sales or a tax return if you weren't operational.

[gozalim]

Married filing jointly :
Are we looking at 1099/reduction yoy of specifically one spouse (sole prop) or of the couple on general?

[cgr]

Married filing jointly :
Are we looking at 1099/reduction yoy of specifically one spouse (sole prop) or of the couple on general?

A) the drop only needs to be present in 2 consecutive months
B) Schedule C/Sole Prop only

[helpusout]

anyone have any luck getting EIDL without any income in the business? We have a negative return for 2019 and they are claiming thats a reason for denial

[cgr]

anyone have any luck getting EIDL without any income in the business? We have a negative return for 2019 and they are claiming thats a reason for denial

EIDL is based on gross sales, not net income.
When applying, did you input your gross sales?

[AsherO]

You qualify if you were in operation as of 1/31/20. There's no requirement to have 2019 sales or a tax return if you weren't operational.

That’s for EIDL loan. If I’m following correctly, @gozalim is interested in the targeted advance and supplemental targeted advance, and would thus need to show a YoY reduction (30% for TA, 50% for STA) for an 8-week period. Impossible to show a reduction in 2020 numbers when there was no entity/financials at all in 2019.

[helpusout]

EIDL is based on gross sales, not net income.
When applying, did you input your gross sales?

yes but they ask for our tax returns a few months ago and when I called now this is what the agent said...

[cgr]

That’s for EIDL loan. If I’m following correctly, @gozalim is interested in the targeted advance and supplemental targeted advance, and would thus need to show a YoY reduction (30% for TA, 50% for STA) for an 8-week period. Impossible to show a reduction in 2020 numbers when there was no entity/financials at all in 2019.

There's no YoY requirement, just 2 months.
If you weren't operational in 2019, the comparison is Jan/Feb 2020, to 2 later months in 2020 or 2021.

[AsherO]

There's no YoY requirement, just 2 months.
If you weren't operational in 2019, the comparison is Jan/Feb 2020, to 2 later months in 2020 or 2021.

Ah, thanks! I wasn't aware of the fact that it didn't have to be a matching time period in the prior year. I guess any 8 week period compared to any prior 8 week period is a much easier threshold to achieve, especially for businesses with fluctuating/periodical income.

@gozalim, I guess you're in luck if you were operational (as a business, as in schedule C) in early 2020 and can show the 30/50% reductions required. Your business address would also have to be in a LEC based on the SBA map.

[ShimshonK]

You qualify if you were in operation as of 1/31/20. There's no requirement to have 2019 sales or a tax return if you weren't operational.

But, as I wrote in the post, business was incorporated March 2020.
So that business does not qualify, correct?

Seems like my only option would be to claim it as a sole proprietor (provided that I can say that business is still in operation).

[gozalim]

Ah, thanks! I wasn't aware of the fact that it didn't have to be a matching time period in the prior year. I guess any 8 week period compared to any prior 8 week period is a much easier threshold to achieve, especially for businesses with fluctuating/periodical income.

hypothetical example:
someone was paid on a 10 month schedule (same both years; '19 '20)
so compare Jul-Aug '20 gross ($0) to Jan-Feb '20 gross ($100/mo)

[Deal Guy]

Has the sba approved any ppp loans in the last 2 weeks?
Any hope of approvals still coming through?

[cgr]

Coronavirus Economic Relief for Transportation Services (CERTS)
https://home.treasury.gov/policy-issues/coronavirus/assistance-for-american-industry/coronavirus-economic-relief-for-transportation-services

CERTS provides grants to transportation service providers such as coach bus, school bus, passenger vessel, and pilot vessel companies that suffered a decline due to covid.
The program is open through July 19.

[AsherO]

Thanks, Biz2Credit isn't listed there for instance.

BlueVine never contacted me, though I'd have less than 30 days to apply for forgiveness with an 8 week covered period.

Took me 10 minutes flat to apply for PPP1/PPP2 forgiveness with two different lenders/platforms. How long does it actually take for the SBA to process a 3508S?

In case anyone needs a dadapoint, I got notification today that my PPP1 was forgiven, so like 2 weeks.

[ae123]

In case anyone needs a dadapoint, I got notification today that my PPP1 was forgiven, so like 2 weeks.

I did.
Thanks.

[ShimshonK]

But, as I wrote in the post, business was incorporated March 2020.
So that business does not qualify, correct?

Seems like my only option would be to claim it as a sole proprietor (provided that I can say that business is still in operation).

@cgr I'd greatly appreciate it if you can verify that I'm understanding you correctly here.

[cgr]

But, as I wrote in the post, business was incorporated March 2020.
So that business does not qualify, correct?

Seems like my only option would be to claim it as a sole proprietor (provided that I can say that business is still in operation).

Correct.
Correct.

[ShimshonK]

Correct.
Correct.

Thanks much.