Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 535696 times)

Online moko

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #760 on: May 03, 2020, 11:20:54 AM »
Looking for some clarity....
If  I only applied for a loan to cover employees which I intened to pay and spend the whole loan on salaried payroll which I intend to keep on paying through the rest of the year but I laid off a many hourly employees because the locations are closed, will I still qualify for 100% forgiveness?
I've seen conflicting reports

Offline TBD

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Offline Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #762 on: May 03, 2020, 12:22:29 PM »
Looking for some clarity....
If  I only applied for a loan to cover employees which I intened to pay and spend the whole loan on salaried payroll which I intend to keep on paying through the rest of the year but I laid off a many hourly employees because the locations are closed, will I still qualify for 100% forgiveness?
I've seen conflicting reports
English please?

You need to have same amount of employees.   Not same amount of payroll expenses
#TYH

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #763 on: May 03, 2020, 12:28:23 PM »
As of Apr 24 EIDL issues already "8 TRILLION" dollars in loans with the average loan being approx $200K

https://www.sba.gov/sites/default/files/2020-04/EIDL%20COVID-19%20Loans%204.24.20.pdf

https://www.sba.gov/sites/default/files/2020-04/EIDL%20COVID-19%20Advance%204.24.20.pdf

Something doesn’t add up here. This is for Corona related EIDL loans?
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Online Shua

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #764 on: May 03, 2020, 12:29:25 PM »
As of Apr 24 EIDL issues already "8 TRILLION" dollars in loans with the average loan being approx $200K

https://www.sba.gov/sites/default/files/2020-04/EIDL%20COVID-19%20Loans%204.24.20.pdf

https://www.sba.gov/sites/default/files/2020-04/EIDL%20COVID-19%20Advance%204.24.20.pdf

According to the top PDF you linked it's almost 8 billion in loans. Not 8 Trillion

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #765 on: May 03, 2020, 12:33:03 PM »
According to the top PDF you linked it's almost 8 billion in loans. Not 8 Trillion
Sorry! In these times you don't see a difference between Billion and Trillion :-*

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #766 on: May 03, 2020, 12:33:33 PM »
A) I though you arent allowed to use the EIDL and PPP for the same thing.

B) Is the EIDL taken off the top? Meaning let's say you got 20k PPP and have 2 employees (so 2k advance grant). If taken off the top that would mean you calculate your 75% payroll at 18k (13,500). If taken off at the end then would be 75% of 20k (15,000).
A) the same thing meaning the same expense. (Example: Your rent is 1k. You can't tell PPP you used 1k for rent, and then tell EIDL you used their 1k for rent.)

B) Your PPP loan amount stays the same. When it comes to forgiveness they'll take Total PPP (20k) Minus Total EIDL Grant (2k)= PPP Forgiveness (18k). That leaves you with a loan balance of 2k, which is the amount you already got from EIDL.

Again, what they're saying is you're only eligible to get the total of your PPP forgiveness from the SBA. If you took some from our EIDL grant bucket, you'll need to make up the difference by deducting from your forgiveness.
If I'm not being clear maybe someone with better communication skills can chime in?

Offline zh cohen

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #767 on: May 03, 2020, 12:35:42 PM »
Looking for some clarity....
If  I only applied for a loan to cover employees which I intened to pay and spend the whole loan on salaried payroll which I intend to keep on paying through the rest of the year but I laid off a many hourly employees because the locations are closed, will I still qualify for 100% forgiveness?
I've seen conflicting reports

Your forgiveness will be reduced by the percentage of FTE employees you let go (or do not rehire). So even if your hourly employees were part time, they add up (so if you have 2 workers that worked 15 hours a week before, they equal one FTE employee).

Online moko

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #768 on: May 03, 2020, 12:52:18 PM »
English please?

You need to have same amount of employees.   Not same amount of payroll expenses
someone in the company advised the accounting Dept. to only apply for the amount that we assumed would be forgiven. For example, say the salaried employees added up to $100000 fir 8 weeks of payroll and the hourly employees added up to an additional$100000 for 8 weeks of payroll. The acct Dept only applied for $100000 loan assuming that was the forgivable amount. In reality it seems we should have applied for $200000 and simply returned$100000. My question is , will the whole $100000 that we actually got approved for be forgivable if it is all spent on payroll.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #769 on: May 03, 2020, 12:55:31 PM »
someone in the company advised the accounting Dept. to only apply for the amount that we assumed would be forgiven. For example, say the salaried employees added up to $100000 fir 8 weeks of payroll and the hourly employees added up to an additional$100000 for 8 weeks of payroll. The acct Dept only applied for $100000 loan assuming that was the forgivable amount. In reality it seems we should have applied for $200000 and simply returned$100000. My question is , will the whole $100000 that we actually got approved for be forgivable if it is all spent on payroll.
The 75% payroll guideline is the floor, not the ceiling.
If you can spend 100% on payroll, your forgiveness will be much simpler. You'll probably just need to submit your payroll report for those 8 weeks, instead of submitting lease agreements, proof of payment, etc.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #770 on: May 03, 2020, 12:57:18 PM »
There's talk that the SBA will release the official forgiveness guidelines tomorrow- hopefully lots of these questions will be definitively answered.

Offline SwellCindy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #771 on: May 03, 2020, 05:03:37 PM »
Can someone pls post a link to apply for EIDL?  I'm on this pg & whichever option I select I see no "Apply" button.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options

Also, does a/o know if there's still a chance the SBA will provide funding for add'l applicants?

Thank you, I tried searching upthread but didn't come across this specific info.

Offline mme

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #772 on: May 03, 2020, 05:09:06 PM »
Can someone pls post a link to apply for EIDL?  I'm on this pg & whichever option I select I see no "Apply" button.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options

Also, does a/o know if there's still a chance the SBA will provide funding for add'l applicants?

Thank you, I tried searching upthread but didn't come across this specific info.
it's not available anymore https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

Offline SwellCindy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #773 on: May 03, 2020, 05:14:30 PM »
it's not available anymore https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

Thank you for your response, anyone have any DP on add'l funds becoming avail or is this opportunity mostly over?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #774 on: May 03, 2020, 06:16:24 PM »
Sorry! In these times you don't see a difference between Billion and Trillion :-*

Makes much more sense, they might have $30b more to give, but it’s a pittance compared to PPP.
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Offline zh cohen

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #775 on: May 03, 2020, 06:40:37 PM »
The 75% payroll guideline is the floor, not the ceiling.
If you can spend 100% on payroll, your forgiveness will be much simpler. You'll probably just need to submit your payroll report for those 8 weeks, instead of submitting lease agreements, proof of payment, etc.

His problem will be with the condition that he have the same number of employees.

Offline zh cohen

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #776 on: May 03, 2020, 06:48:29 PM »
someone in the company advised the accounting Dept. to only apply for the amount that we assumed would be forgiven. For example, say the salaried employees added up to $100000 fir 8 weeks of payroll and the hourly employees added up to an additional$100000 for 8 weeks of payroll. The acct Dept only applied for $100000 loan assuming that was the forgivable amount.

Someone gave the accounting department bad advice.

In reality it seems we should have applied for $200000 and simply returned $100000.

Not so simple. If you let go 50% of your employees, they will only forgive 50% of the money spent on eligible expenses(in your example, $100k).

Online moko

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #777 on: May 03, 2020, 06:57:48 PM »
Not so simple. If you let go 50% of your employees, they will only forgive 50% of the money spent on eligible expenses(in your example, $100k).
if this is true,
Someone gave the accounting department bad advice.
then why is this true?

Offline zh cohen

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #778 on: May 03, 2020, 07:17:25 PM »
if this is true,then why is this true?

Because you could have gotten (50%) forgiveness on some additional money spent on Utilities, rent, mortgage interest (not principal) above the amount spent on payroll.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #779 on: May 03, 2020, 07:24:12 PM »
Because you could have gotten (50%) forgiveness on some additional money spent on Utilities, rent, mortgage interest (not principal) above the amount spent on payroll.

If they based their application on 2.5X payroll, they're good.
If they went with 100k flat because that's their payroll for 8 weeks, then yes, they were misled.