Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 535939 times)

Offline SwellCindy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #820 on: May 04, 2020, 02:16:38 PM »
But the application page is open. Think we should go ahead and apply even id not agriculture? Anything to lose?

Anyone??

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #821 on: May 04, 2020, 02:17:54 PM »
But the application page is open. Think we should go ahead and apply even id not agriculture? Anything to lose?
Anyone applying? Please post

Offline aygart

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #822 on: May 04, 2020, 02:29:44 PM »
But the application page is open. Think we should go ahead and apply even id not agriculture? Anything to lose?
I can't imagine there is anything to lose.
Feelings don't care about your facts

Offline SwellCindy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #823 on: May 04, 2020, 02:35:22 PM »
My accountant said to try, have nothing to lose.

Offline yitz1000

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #824 on: May 04, 2020, 02:56:46 PM »
I can't verify but I'm hearing that someone called the SBA and they said all industries can apply, but they will give preferential treatment to Agri businesses

Offline beeweegee

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #825 on: May 04, 2020, 02:58:52 PM »
For an independent contractor (1099 and submitted a Schedule C), am I correct in assuming that for the 75% requirement of covering payroll, there will be no need to "prove" payroll (there is no payroll...), as you are simply replacing the funds of your lost 1099 income (as calculated by the 2019 Schedule C)?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #826 on: May 04, 2020, 03:00:49 PM »
For an independent contractor (1099 and submitted a Schedule C), am I correct in assuming that for the 75% requirement of covering payroll, there will be no need to "prove" payroll (there is no payroll...), as you are simply replacing the funds of your lost 1099 income (as calculated by the 2019 Schedule C)?

Got some details for you:

https://bench.co/blog/operations/ppp-loan-forgiveness/
You are entitled to use the PPP loan to replace lost compensation due to the impacts of COVID-19. However, you are not entitled to use the full amount to replace pay. Eight weeks worth of your 2019 net profit will be eligible for forgiveness.

If you have mortgage interest, rent, or utilities expenses, you must have claimed or be entitled to claim a deduction for those expenses on your 2019 Form 1040 Schedule C in order to claim them for forgiveness.


https://www.nav.com/blog/how-to-apply-for-forgiveness-for-your-paycheck-protection-program-loan-602036/
Owner compensation replacement, calculated based on 2019 net profit … with forgiveness of such amounts limited to eight weeks’ worth (8/52) of 2019 net profit
Payments of interest on mortgage obligations on real or personal property incurred before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business mortgage payments);
Rent payments on lease agreements in force before February 15, 2020, to the extent they are deductible on Form 1040 Schedule C (business rent payments); and
Utility payments under service agreements dated before February 15, 2020 to the extent they are deductible on Form 1040 Schedule C (business utility payments).


Offline sillypainter

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #827 on: May 04, 2020, 03:23:59 PM »
EIDL IS BACK UP!!!!!!!!!!!!!!!!!!!!


https://covid19relief.sba.gov/#/

@Dan I thing it deserves a DDMS post.

Offline aygart

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #828 on: May 04, 2020, 03:24:49 PM »
EIDL IS BACK UP!!!!!!!!!!!!!!!!!!!!


https://covid19relief.sba.gov/#/

@Dan I thing it deserves a DDMS post.
SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses.


Can we file a lawsuit against this discrimination?
Feelings don't care about your facts

Offline sillypainter

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #829 on: May 04, 2020, 03:27:24 PM »
Not sure where you get it from. Link looks regular to me. I can continue with just saying I am a "Applicant is a business with not more than 500 employees."

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #830 on: May 04, 2020, 03:44:44 PM »
Not sure where you get it from. Link looks regular to me. I can continue with just saying I am a "Applicant is a business with not more than 500 employees."
I reviewed the application and it's the same. Many aren't seeing the cover page and only bookmarked the actual application link so I doubt they can penalize for applying.

Offline sillypainter

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #831 on: May 04, 2020, 03:47:21 PM »
I reviewed the application and it's the same. Many aren't seeing the cover page and only bookmarked the actual application link so I doubt they can penalize for applying.

Right, you can't be penalized when you don't lie. Just say the truth.

Offline SwellCindy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #832 on: May 04, 2020, 03:51:20 PM »
Applied & got conf number.  Any DP on whether they provide funding even though credit rate below 650 at this time (according to Cap One Creditwise. Citibank shows 691.)?
Credit took a hit recently, wondering if those who rec'd did so with less than stellar credit.

Offline yitz1000

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #833 on: May 04, 2020, 04:19:08 PM »
Applied & got conf number.  Any DP on whether they provide funding even though credit rate below 650 at this time (according to Cap One Creditwise. Citibank shows 691.)?
Credit took a hit recently, wondering if those who rec'd did so with less than stellar credit.

I don't believe credit is a factor considered

Offline SwellCindy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #834 on: May 04, 2020, 04:35:02 PM »
I don't believe credit is a factor considered

Asking because replies #489-491 on this thread (didn't figure out yet how to quote multiple responses in one mssg), see also conversations bet. 4/21 - 4/22.

Offline zh cohen

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #835 on: May 04, 2020, 05:43:25 PM »
-1

https://www.sba.gov/sites/default/files/2020-04/PPP%20Interim%20Final%20Rule_0.pdf

g. Is there anything that is expressly excluded from the definition of payroll costs?
Yes. The Act expressly excludes the following:
...
iii. Federal employment taxes imposed or withheld between February 15, 2020 and June 30, 2020, including the employee’s and employer’s share of FICA (Federal Insurance Contributions Act) and Railroad Retirement Act taxes, and income taxes required to be
withheld from employees;...

https://www.sba.gov/sites/default/files/2020-05/Paycheck-Protection-Program-Frequently-Asked-Questions_05%2003%2020.pdf

16. Question: How should a borrower account for federal taxes when determining its payroll costs for purposes of the maximum loan amount, allowable uses of a PPP loan, and the amount of a loan that may be forgiven?
Answer: Under the Act, payroll costs are calculated on a gross basis without regard to (i.e., not including subtractions or additions based on) federal taxes imposed or withheld, such as the employee’s and employer’s share of Federal Insurance Contributions Act (FICA) and income taxes required to be withheld from employees. As a result, payroll costs are not reduced by taxes imposed on an employee and required to be withheld by the employer, but payroll costs do not include the employer’s share of payroll tax...

February 15, 2020 and June 30, 2020 is a key point that you are overlooking.

If you calculated your loan amount based on 2019, it is irrelevant. Only if you used the past 12 months, or a new business that used Q1 of 2020

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #836 on: May 04, 2020, 05:53:49 PM »
February 15, 2020 and June 30, 2020 is a key point that you are overlooking.

If you calculated your loan amount based on 2019, it is irrelevant. Only if you used the past 12 months, or a new business that used Q1 of 2020

Forgiveness has the same definition. What's the point of taking it if it you won't be able to get it forgiven?

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #837 on: May 04, 2020, 07:23:03 PM »
February 15, 2020 and June 30, 2020 is a key point that you are overlooking.

If you calculated your loan amount based on 2019, it is irrelevant. Only if you used the past 12 months, or a new business that used Q1 of 2020
Whats the difference regarding payroll taxes which payroll you use?

Offline moko

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #838 on: May 04, 2020, 10:25:11 PM »
Not sure if this helps but,
From an email our payroll company sent out:

"Keep Track of Employee Headcount and Salary Levels. For the next eight weeks, if your
average number of full-time equivalent employees per month is less than the average during a
base period, your forgivable loan amount will be reduced. The base period is either (1) 2/15/19
through 6/30/19, or (2) 1/1/20 through 2/29/20. We can help you choose the period that produces
the best result."

If this is true, then it's very helpful.
We furlough many employees every January due to winter break.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #839 on: May 05, 2020, 01:10:41 AM »
Can rent or other obligations be prepaid?
To be forgiven, the CARES Act states costs must be incurred and paid during the covered period. Further guidance specifically addresses that prepayments of mortgage payments is not allowed

https://www.aicpa.org/interestareas/privatecompaniespracticesection/qualityservicesdelivery/sba-paycheck-protection-program-resources-for-cpas/sba-payroll-protection-program-faqs.htm