Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 535636 times)

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #840 on: May 05, 2020, 01:12:56 AM »
Do federal taxes count as “payroll costs” for calculating the forgiveness?
Under the Cares Act, no. The language of the Cares Act specifically excludes taxes assessed or withheld under Chapters 21, 22 and 24 of the Internal Revenue Code, which includes FICA, Railroad Retirement Tax, and Withholdings on Federal Income Tax. However, on April 8 the SBA issued additional guidance in the form of its own FAQ which states that contrary to the definition of payroll costs found in the Act, payroll costs should be calculated on a “gross basis without regard to federal taxes imposed or withheld.” As a result, the SBA interprets this to mean payroll costs are not reduced by the taxes imposed on an employee and required to be withheld by the employer, but payroll costs are also not increased by the employer’s share of payroll costs. The following example is used: an employee receives gross pay of $4,000, of which $500 is withheld for federal taxes; The full $4,000 would count as payroll costs, however, the employer-side federal payroll taxes imposed on the $4,000 are excluded from payroll costs.

https://messerlikramer.com/calculating-ppp-loan-forgiveness-faqs

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #841 on: May 05, 2020, 01:17:25 AM »
How is the headcount for full-time equivalent employees calculated during the covered period?
Section 2301(c)(3) of the Cares Act, which deals with employee retention, points to Section 4980H of the Internal Revenue Code to define a full-time employee as one who works on average at least 30 hours a week. Further down in IRC Section 4980H, a full-time equivalent employee is determined by adding the hours of all non-full-time employees during the month and dividing by 120. However, the Cares Act also requires this determination to be made each pay period during the Covered Period. We are currently advising clients to add the total number of hours of non-full time employees and divide by 30, 60, or 120 depending on the pay period (30 if weekly, 60 if bi-weekly, and 120 if monthly). More guidance is needed.

Offline beeweegee

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #842 on: May 05, 2020, 01:22:22 AM »
Can an independent contractor who is approved for PPP and will use the finds to cover their paycheck go out and take a new salaried job during those 8 weeks? Any reason someone couldn't be "paid" for their lost 1099 work while simultaneously accepting a new paid position (entirely separate from their 1099 work that they are in fact missing out on...)?
« Last Edit: May 05, 2020, 01:30:41 AM by beeweegee »

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #843 on: May 05, 2020, 01:27:06 AM »
https://home.treasury.gov/news/secretary-statements-remarks/joint-statement-by-treasury-secretary-steven-t-mnuchin-and-sba-administrator-jovita-carranza-on-the-success-of-the-paycheck-protection-program

“Since Round 2 of PPP loan processing began on April 27, 2.2 million loans have been made to small businesses which surpasses the number of all loans made in PPP Round 1.  The total value of these 2.2 million loans is over $175 billion.  Notably, the average loan size in Round 2 is $79,000, yet another indicator that the program is broadly based and assisting the smallest of small businesses.

https://www.sba.gov/sites/default/files/2020-05/PPP2%20Data%2005012020.pdf

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #844 on: May 05, 2020, 06:20:18 AM »
https://home.treasury.gov/news/secretary-statements-remarks/joint-statement-by-treasury-secretary-steven-t-mnuchin-and-sba-administrator-jovita-carranza-on-the-success-of-the-paycheck-protection-program

“Since Round 2 of PPP loan processing began on April 27, 2.2 million loans have been made to small businesses which surpasses the number of all loans made in PPP Round 1.  The total value of these 2.2 million loans is over $175 billion.  Notably, the average loan size in Round 2 is $79,000, yet another indicator that the program is broadly based and assisting the smallest of small businesses.

https://www.sba.gov/sites/default/files/2020-05/PPP2%20Data%2005012020.pdf

$175b means they’re less than 60% of the way through the 2nd round of funds, no? Or do they only mean funded loans?
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Offline zh cohen

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #845 on: May 05, 2020, 08:53:46 AM »
$175b means they’re less than 60% of the way through the 2nd round of funds, no? Or do they only mean funded loans?

I think that number is as of May 1st

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #846 on: May 05, 2020, 09:00:00 AM »
I think that number is as of May 1st
correct

Offline ilherman

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #847 on: May 05, 2020, 12:28:20 PM »
Did ANYONE get funded yet from Dime?
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Offline moko

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #848 on: May 05, 2020, 12:30:26 PM »
Got funded this morning from Citizen's.
They claim as long as the full funds are spent on the next 8 weeks payroll, we'll get 100% forgiveness but who knows

Offline sillypainter

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #849 on: May 05, 2020, 12:40:10 PM »
Got funded this morning from Citizen's.
They claim as long as the full funds are spent on the next 8 weeks payroll, we'll get 100% forgiveness but who knows

Glad to hear you were funded, can't still wrap my head around the WRONG info you were given to apply for less than you are eligible. I would try to get the rest of the loan, call your bank.

Offline Abc1234561

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #850 on: May 05, 2020, 12:45:24 PM »
Did ANYONE get funded yet from Dime?

not yet but they made me open a checking account with them in order to deposit the funds.

Offline zh cohen

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #851 on: May 05, 2020, 12:48:13 PM »
Glad to hear you were funded, can't still wrap my head around the WRONG info you were given to apply for less than you are eligible.

Not so surprising. There wasn't much information available at the beginning, and lots of people were guessing.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #852 on: May 05, 2020, 01:17:28 PM »
Is it Kabbage's lucky day?
Just got "Congratulations! XXXXXXX qualified for a PPP loan of $XX,XXX.00"
This is after having "Your application has been submitted to the SBA" since Monday night.

Yesterday I called in to check what was going on after having the above for a few days. Rep said she'll forward file to supervisor. A few min later I had my loan docs, and a few min after signing they updated account to note that they disbursed the funds to the account selected.
Now this morning when I log in there's a new error, There was an error processing your documents, and that I should call them. Phones have been busy all morning.

Wondering if it's a legit error or if it's something like this:
If you applied to Kabbage for PPP and had a "Not Eligible" determination this morning, check again.
They've updated thousands of applications to "Under Review" or "Submitted to SBA".

Ridiculous. Was so disappointed this morning after spending hours on an non-profits application, and now heard via the grapevine to check again and viola! Submitted to SBA!

Anyone else receiving this error?

Offline moko

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #853 on: May 05, 2020, 01:26:38 PM »
Not so surprising. There wasn't much information available at the beginning, and lots of people were guessing.
+100

Offline Shua

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #854 on: May 05, 2020, 03:07:36 PM »
Yesterday I called in to check what was going on after having the above for a few days. Rep said she'll forward file to supervisor. A few min later I had my loan docs, and a few min after signing they updated account to note that they disbursed the funds to the account selected.
Now this morning when I log in there's a new error, There was an error processing your documents, and that I should call them. Phones have been busy all morning.

Wondering if it's a legit error or if it's something like this:
Anyone else receiving this error?

Didn't get that error but try DMing them on Twitter. Very fast response.

Offline beeweegee

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #855 on: May 05, 2020, 03:10:29 PM »
Can an independent contractor who is approved for PPP and will use the finds to cover their paycheck go out and take a new salaried job during those 8 weeks? Any reason someone couldn't be "paid" for their lost 1099 work while simultaneously accepting a new paid position (entirely separate from their 1099 work that they are in fact missing out on...)?
And this question would also apply to additional NEW unrelated 1099 work...

Online cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #856 on: May 05, 2020, 03:11:58 PM »
Didn't get that error but try DMing them on Twitter. Very fast response.

Tried that twice. One check-mark, no response (first message was over a week ago when I had a different issue)

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #858 on: May 05, 2020, 04:19:27 PM »
Tried that twice. One check-mark, no response (first message was over a week ago when I had a different issue)
try again on twitter. at some point they will asnwer.  but try logging out and back in and see if the error is still there
#TYH

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #859 on: May 05, 2020, 04:51:53 PM »
try again on twitter. at some point they will asnwer.  but try logging out and back in and see if the error is still there
Thanks. Will do.