SBA PPP and EIDL Small Business Loans (some money is forgivable)

[TBD]

Agreed. So you think that there will end up being forgiveness even if it's 73-74%? Or do you think they won't be strict on 8/52? My accountant thinks the latter, even though they are writing the opposite. Who knows...

There is no such rule. The rule Whatever you spend on payroll is forgiven, If its 20% 50% or 70% or 100%. Just if you spend only 50% on payroll, the other part wont be forgive only up to 25% of payroll amount. Another rule is that self employed can only use 8/52 on payroll but again, whatever you spend on payroll, w-2 up to 100% SE up to 8/52 is forgiven, no matter what you do with other part

[beeweegee]

There is no such rule. The rule Whatever you spend on payroll is forgiven, If its 20% 50% or 70% or 100%. Just if you spend only 50% on payroll, the other part wont be forgive only up to 25% of payroll amount. Another rule is that self employed can only use 8/52 on payroll but again, whatever you spend on payroll, w-2 up to 100% SE up to 8/52 is forgiven, no matter what you do with other part

Got it, thanks.

[beeweegee]

Any advice how to get through to Kabbage? They keep ending my call while on hold because of the "high call volume." I want to change my DD info but the website says the only way to do that is to call.

[AsherO]

Agreed. So you think that there will end up being forgiveness even if it's 73-74%? Or do you think they won't be strict on 8/52? My accountant thinks the latter, even though they are writing the opposite. Who knows...

I strongly think it will YMMV with different banks doing things differently.

[cgr]

Any advice how to get through to Kabbage? They keep ending my call while on hold because of the "high call volume." I want to change my DD info but the website says the only way to do that is to call.

Thank you. I did as you said. Just a tip I’ve never got a hold of a rep at kabbage by pressing any number other than 6. So if you’re trying to reach them press 6 & ask them wtvr you need

[beeweegee]

Thanks! I tried that and actually did get through to an agent eventually, but she couldn't help me and needed to transfer me to the department that could. Aaaaand then was on hold again until they disconnected me, telling me that the call volume was too high... Back to square one.

[bubkiz]

I had luck on Friday calling 888-313-4078. Got through to rep after 5 mins of hold time who actually was able to help. It may help to commiserate with them. They are overwhelmed and the agent said he got plenty of verbal abuse from other callers.

[cgr]

Just saw this from a payroll company:

Here’s a heads-up for clients who receive CARES Act SBA loans under the Paycheck Protection Program (PPP). Under the Act, the amount of PPP loan forgiveness is based in part on the amount your company incurs and pays within the 8-week period commencing with the date you received your PPP funds (Covered Period), not the date of loan approval, for payroll costs and qualifying rent, mortgage interest, and utilities payments (subject to limitations).

Since the law states that expenses must be incurred and paid during the Covered Period, current issues to discuss with your legal counsel/tax advisor include:

Your first payroll after your PPP loan distribution may include portions that were incurred prior to the Covered Period and therefore may need to be subtracted out to calculate your total loan forgiveness.

Plan to pay all qualifying amounts incurred during your Covered Period before the end of your 8-week Covered Period. This may require a special off-cycle (nonscheduled) payroll with a check date on the last day of your Covered Period.

It is also likely the SBA will not permit prepayment of payroll for periods after the Covered Period, since such costs would not be incurred during the Covered Period.

Future SBA guidance may provide additional clarification in these areas.

Still waiting to hear how the SBA will rule on those, but if they follow the above W2 employers with the same payroll costs as 2019 will find themselves having the same issue as Sole props who are limited to 8/52 of their Schedule C.

[beeweegee]

I had luck on Friday calling 888-313-4078. Got through to rep after 5 mins of hold time who actually was able to help. It may help to commiserate with them. They are overwhelmed and the agent said he got plenty of verbal abuse from other callers.

This number worked - thanks so much!

[ilherman]

Anyoe here with an update from Dime? This whole dime thing stinks to high heaven..

[TBD]

Anyoe here with an update from Dime? This whole dime thing stinks to high heaven..

+1000

[AsherO]

Anyoe here with an update from Dime? This whole dime thing stinks to high heaven..

Not too late to apply through BlueVine...

In other news, BlueVine sent an email about forgiveness, wrote what they know so far, and we’re very clear that they’re still waiting for further guidance from the SBA to clarify things about forgiveness.

[TBD]

Not too late to apply through BlueVine...

In other news, BlueVine sent an email about forgiveness, wrote what they know so far, and we’re very clear that they’re still waiting for further guidance from the SBA to clarify things about forgiveness.

Applied now by BlueVine, will keep posted

[yitz1000]

I'm grappling with one specific PPP loan that I applied for which is up to the docusign stage - whether I should take it or not. There's very clear language that 1099s are not included in Payroll when a business is applying and only counts for the sole prop themselves if they apply for a loan.

I believe in the very beginning this was unclear but I don't know if there was specific language stating that it's allowed.

I was approved on an application for a business that consisted solely of a single 1099 paid out to someone and I'm trying to figure out if there's a way I can justify accepting it and obtaining forgiveness. Unless I have something substantial to fall back on I'm going to just let it go.

Anyone have experience with this?

[cgr]

I'm grappling with one specific PPP loan that I applied for which is up to the docusign stage - whether I should take it or not. There's very clear language that 1099s are not included in Payroll when a business is applying and only counts for the sole prop themselves if they apply for a loan.

I believe in the very beginning this was unclear but I don't know if there was specific language stating that it's allowed.

I was approved on an application for a business that consisted solely of a single 1099 paid out to someone and I'm trying to figure out if there's a way I can justify accepting it and obtaining forgiveness. Unless I have something substantial to fall back on I'm going to just let it go.

Anyone have experience with this?

https://www.sba.com/funding-a-business/government-small-business-loans/ppp/faq/contractors-included-payroll-calculations-ppp/

Above link states a very clear no.

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

15. Question: Should payments that an eligible borrower made to an independent contractor or sole proprietor be included in calculations of the eligible borrower’s payroll costs?
Answer: No. Any amounts that an eligible borrower has paid to an independent contractor or sole proprietor should be excluded from the eligible business’s payroll costs. However, an independent contractor or sole proprietor will itself be eligible for a loan under the PPP, if it satisfies the applicable requirements.

[yitz1000]

https://www.sba.com/funding-a-business/government-small-business-loans/ppp/faq/contractors-included-payroll-calculations-ppp/

Above link states a very clear no.

Correct, I mentioned this above. But was there different language that proceeded this?

[yitz1000]

Correct, I mentioned this above. But was there different language that proceeded this?

*preceded

[cgr]

Correct, I mentioned this above. But was there different language that proceeded this?

Discussed here:

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

Question: I filed or approved a loan application based on the version of the PPP Interim
Final Rule published on April 2, 2020. Do I need to take any action based on the updated
guidance in these FAQs?
Answer: No. Borrowers and lenders may rely on the laws, rules, and guidance available
at the time of the relevant application. However, borrowers whose previously submitted
loan applications have not yet been processed may revise their applications based on
clarifications reflected in these FAQs.

Only applicable to loans originated prior to April 2, and that's not you so I wouldn't go for it if I was you...

[yitz1000]

Discussed here:
Only applicable to loans originated prior to April 2, and that's not you so I wouldn't go for it if I was you...

lol, I did not miss it by much. Applied on 4/6. Thanks.

[cgr]

lol, I did not miss it by much. Applied on 4/6. Thanks.

Read it again.

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

Question: I filed or approved a loan application based on the version of the PPP Interim
Final Rule published on April 2, 2020. Do I need to take any action based on the updated
guidance in these FAQs?
Answer: No. Borrowers and lenders may rely on the laws, rules, and guidance available
at the time of the relevant application. However, borrowers whose previously submitted
loan applications have not yet been processed may revise their applications based on
clarifications reflected in these FAQs.