Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 535674 times)

Online Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #340 on: April 26, 2020, 11:42:24 AM »
You better believe it.
Officially they don't care about your credit...
#TYH

Offline hvaces42

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #341 on: April 26, 2020, 11:52:10 AM »
Officially they don't care about your credit...
But they pull no matter. Mine from Experian. We should start a poll where it pulled form.
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Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #342 on: April 26, 2020, 11:55:41 AM »
Officially they don't care about your credit...

Maybe they pull to verify your identity? Not defending the practice, but they’re probably piggybacking on existing processes.
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Offline ilherman

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #343 on: April 26, 2020, 12:06:48 PM »
Question: What time period should borrowers use to determine their number of
employees and payroll costs to calculate their maximum loan amounts?

Answer: In general, borrowers can calculate their aggregate payroll costs using data
either from the previous 12 months or from calendar year 2019. For seasonal businesses,
the applicant may use average monthly payroll for the period between February 15, 2019,
or March 1, 2019, and June 30, 2019. An applicant that was not in business from
February 15, 2019 to June 30, 2019 may use the average monthly payroll costs for the
period January 1, 2020 through February 29, 2020.

Borrowers may use their average employment over the same time periods to determine
their number of employees, for the purposes of applying an employee-based size
standard. Alternatively, borrowers may elect to use SBA’s usual calculation: the average
number of employees per pay period in the 12 completed calendar months prior to the
date of the loan application (or the average number of employees for each of the pay
periods that the business has been operational, if it has not been operational for 12
months).



https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf
Interesting. But I did not see any bank giving the option to calculate like this?
You can say what you think when you think what you say.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #344 on: April 26, 2020, 12:09:29 PM »
Interesting. But I did not see any bank giving the option to calculate like this?

Maybe a bank you have a relationship with, someone to talk to?
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Offline Yammer

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #345 on: April 26, 2020, 02:02:19 PM »
You better believe it.
Hard pull for PPP??
I definitely remember reading on certain PPP lending pages ( before the application), that it will not affect your credit. ( Could be it was even PayPal )

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #348 on: April 26, 2020, 02:22:38 PM »
Just taking me to the home apge
Not sure why.

Why does the SBA pull your credit?
Lenders need to make sure you’re accurately representing yourself and your business, and credit scores are a quick way to do so.
“The SBA will pull (known as a hard pull) your credit prior to providing you with a loan to assess your credit report and score in order to determine your creditworthiness,” Woodley said.
Your credit score gives a good indication of whether or not you’ll pay your bills. But much like your personal credit score, you don’t have just one business credit score but multiple ones depending on the credit bureau pulling your credit report.
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Offline Yammer

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #349 on: April 26, 2020, 02:27:48 PM »
Not sure why.

Why does the SBA pull your credit?
Lenders need to make sure you’re accurately representing yourself and your business, and credit scores are a quick way to do so.
“The SBA will pull (known as a hard pull) your credit prior to providing you with a loan to assess your credit report and score in order to determine your creditworthiness,” Woodley said.
Your credit score gives a good indication of whether or not you’ll pay your bills. But much like your personal credit score, you don’t have just one business credit score but multiple ones depending on the credit bureau pulling your credit report.

Thanks

I understood that since PPP is a grant vs EDIL that's a loan.

I need to find on which App I saw it

Offline ilherman

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #350 on: April 26, 2020, 02:59:52 PM »
Not sure why.

Why does the SBA pull your credit?
Lenders need to make sure you’re accurately representing yourself and your business, and credit scores are a quick way to do so.
“The SBA will pull (known as a hard pull) your credit prior to providing you with a loan to assess your credit report and score in order to determine your creditworthiness,” Woodley said.
Your credit score gives a good indication of whether or not you’ll pay your bills. But much like your personal credit score, you don’t have just one business credit score but multiple ones depending on the credit bureau pulling your credit report.
Can't they see my score without a hard pull?
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Offline ilherman

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #351 on: April 26, 2020, 03:01:06 PM »
Maybe a bank you have a relationship with, someone to talk to?
I am with chase...

Besides that, it seems that to utilze this I will have to lie. Not there yet. I will have to say that I was out of business then. I was not. I just did not take out Payroll.
You can say what you think when you think what you say.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #352 on: April 26, 2020, 03:22:03 PM »
Thanks

I understood that since PPP is a grant vs EDIL that's a loan.

I need to find on which App I saw it

PPP is intended to lend you an amount that can be forgivable if you fit the criteria. EIDL has a broader definition and is meant to provide funds sooner (not going to happen since SBA doesn’t have the capacity to underwrite these quickly enough) and lend the money over a longer amount of time.

If you get an EIDL grant and PPP, then the EIDL grant amount counts towards the PPP forgiveness. So say you got $1k EIDL and got $10k PPP, when you qualify for full $10k forgiveness on the PPP they only forgive $9k as you already got $1k from the EIDL grant.
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Offline Yoel

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #353 on: April 26, 2020, 03:50:07 PM »
I applied only for the EIDL and got 2k, does this need to be paid back?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #354 on: April 26, 2020, 03:52:45 PM »
I applied only for the EIDL and got 2k, does this need to be paid back?
No. EIDL under 10k without a loan agreement is a straight up grant.
If you receive additional amounts from EIDL with a loan agreement, or apply for a PPP and don't satisfy the forgiveness requirements, then you need to repay (with generous terms).

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #355 on: April 26, 2020, 04:32:19 PM »
Unfortunately I couldn't get my act together on time for EIDL. I hope PPP comes through, though I'm not sure how forgiveness works for self-employed without employees.

Also, I am right to assume that 1099s will be issued for forgiven amounts?
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #356 on: April 26, 2020, 04:34:32 PM »
Can't they see my score without a hard pull?
I don't see why not.
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #357 on: April 26, 2020, 04:52:15 PM »
Unfortunately I couldn't get my act together on time for EIDL. I hope PPP comes through, though I'm not sure how forgiveness works for self-employed without employees.

Also, I am right to assume that 1099s will be issued for forgiven amounts?
It wont be taxable

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #359 on: April 26, 2020, 05:45:34 PM »
Unfortunately I couldn't get my act together on time for EIDL. I hope PPP comes through, though I'm not sure how forgiveness works for self-employed without employees.

I wonder the same, I don’t think they’ve decided this one yet.
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