Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 289244 times)

Offline Ver hut gazugt

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4480 on: October 31, 2021, 01:51:25 PM »
I have an EIDL loan in reconsideration for a very long time, every few weeks i get an email to continue my application, when i log in they keep asking me again for forms I've already submitted. like 4506T & Schedule of liabilities form.....
did you send it in a second time. It could be there was an issue with the first form.

Offline JACKBLUE

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4481 on: October 31, 2021, 03:11:23 PM »
did you send it in a second time. It could be there was an issue with the first form.
Just sent it in for the 3rd time....

Offline cholent

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4482 on: October 31, 2021, 10:39:59 PM »
Person has two schedule Es with 3 properties on each. Can they apply for EIDL based on one property or has to be all properties on a single schedule E or even all properties reported total?
Don't ask stupid questions and you won't get stupid answers

Offline hcn0132

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4483 on: October 31, 2021, 10:52:20 PM »
anyone ever get this when clicking on link in email from SBA?

Access Denied
You don't have permission to access "http://covid19relief1.sba.gov/Account/Login?" on this server.
Reference #18.56fa3b17.1635734920.1f6cedc6

Offline cholent

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4484 on: October 31, 2021, 11:01:41 PM »
anyone ever get this when clicking on link in email from SBA?

Access Denied
You don't have permission to access "http://covid19relief1.sba.gov/Account/Login?" on this server.
Reference #18.56fa3b17.1635734920.1f6cedc6
Try from another ip address or device
Don't ask stupid questions and you won't get stupid answers

Offline hcn0132

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4485 on: October 31, 2021, 11:18:34 PM »
Try from another ip address or device


was my filter

thanks

Offline Buruch

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4486 on: November 01, 2021, 01:58:19 AM »
Can a sole proprietor lend the money to the owner rather than distribute as payroll? Otherwise, wouldn't you be taking the funds into income, but can't expense the principal when making the payments to SBA?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4487 on: November 01, 2021, 02:09:25 AM »
Person has two schedule Es with 3 properties on each. Can they apply for EIDL based on one property or has to be all properties on a single schedule E or even all properties reported total?
One Schedule E, all properties that are reported on that one (technically all 3 should be combined, but the SBA hasn't figured out a way to actually do that...)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4488 on: November 01, 2021, 02:10:57 AM »
Can a sole proprietor lend the money to the owner rather than distribute as payroll? Otherwise, wouldn't you be taking the funds into income, but can't expense the principal when making the payments to SBA?
You're not permitted to lend EIDL funds.
Principal can never be expensed- it just reduces the loan account.

Offline Buruch

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4489 on: November 01, 2021, 02:18:18 AM »
That greatly reduces the benefit of the loan if it's taxed as income when it flows through to the owner. Unless you can take it out as a distribution?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4490 on: November 01, 2021, 03:04:36 AM »
That greatly reduces the benefit of the loan if it's taxed as income when it flows through to the owner. Unless you can take it out as a distribution?
Distributions would depend on the entity setup. Nots that EIDL funds are not permitted to be used as bonuses above regular payroll (and payroll is always taxed and considered income).

Offline Buruch

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4491 on: November 01, 2021, 06:11:35 AM »
Distributions would depend on the entity setup. Nots that EIDL funds are not permitted to be used as bonuses above regular payroll (and payroll is always taxed and considered income).

On a flow-through entity is the concern.
When the loan comes in, if it gets paid to the owner as payroll, then it would be income. When future funds come in, it would be considered income even when used to repay the loan, so there's a double taxation happening without an expense to offset. The solution would be if the owner takes out the EIDL funds as a distribution rather than profit - I just want to confirm that's allowed.

Offline Fish Tank

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4492 on: November 01, 2021, 08:08:35 AM »
On a flow-through entity is the concern.
When the loan comes in, if it gets paid to the owner as payroll, then it would be income. When future funds come in, it would be considered income even when used to repay the loan, so there's a double taxation happening without an expense to offset.
How so? You can't expense a loan repayment?

Offline cholent

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4493 on: November 01, 2021, 11:37:20 AM »
One Schedule E, all properties that are reported on that one (technically all 3 should be combined, but the SBA hasn't figured out a way to actually do that...)
In that case, what would be the business address? I assumed rental address, would it be the home address on the 1040 instead?
Don't ask stupid questions and you won't get stupid answers

Offline Buruch

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4494 on: November 01, 2021, 11:55:02 AM »
How so? You can't expense a loan repayment?

No way.

Offline ae123

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4495 on: November 01, 2021, 02:34:43 PM »
Newbie to EIDL.

1 - A woman who does daycare, files with Schedule C, and couldn't work April - July 2020 due to COVID, can she apply for EIDL?
2 - If yes, how much can she expect to receive?
3 - Is the application process simple or is it better to hire someone?
4 - If hiring, is 5% of the grant a reasonable amount to pay?

Thank you.

Offline Fish Tank

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4496 on: November 01, 2021, 02:37:42 PM »
Newbie to EIDL.

1 - A woman who does daycare, files with Schedule C, and couldn't work April - July 2020 due to COVID, can she apply for EIDL?
2 - If yes, how much can she expect to receive?
3 - Is the application process simple or is it better to hire someone?
4 - If hiring, is 5% of the grant a reasonable amount to pay?

Thank you.
1 - Yes
2- $15k
3 - hire someone
4 - I paid 10% and it was well worth it. I have another LLC that I applied for myself. It was declined , and then pending reconsideration for a few months, and then declined again today.


Offline ae123

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4497 on: November 01, 2021, 11:36:42 PM »
1 - Yes
2- $15k
3 - hire someone
4 - I paid 10% and it was well worth it. I have another LLC that I applied for myself. It was declined , and then pending reconsideration for a few months, and then declined again today.
Thank you.
Can you elaborate on the words in bold?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4498 on: November 02, 2021, 12:45:57 PM »
Thank you.
Can you elaborate on the words in bold?

He did elaborate on "well worth it":

I have another LLC that I applied for myself. It was declined , and then pending reconsideration for a few months, and then declined again today.

Offline cholent

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4499 on: November 02, 2021, 12:46:57 PM »
He did elaborate on "well worth it":
Why was it declined and how would paying someone have prevented that?
Don't ask stupid questions and you won't get stupid answers