Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 536150 times)

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1060 on: May 14, 2020, 10:06:42 AM »
BH I applied Sunday through Eastern Union, I got the money this morning. 5 days start to finish. BH BH BH BH

Kabbage?
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1061 on: May 14, 2020, 10:20:47 AM »
This is correct, no conflicting info. The only exception I know of is if you don’t get a PPP loan, then you keep the EIDL advance.

If you get an actual EIDL loan it needs to be added to your PPP (unlike the grant which is subtracted) and rolled into one.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1062 on: May 14, 2020, 10:27:02 AM »
If you get an actual EIDL loan it needs to be added to your PPP (unlike the grant which is subtracted) and rolled into one.

What if I get the EIDL after the PPP? No option to keep the 30-year term? If they’re actually lending EIDL for 30 years, that sounds very appealing (beats the best available mortgage rates out there...)
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1063 on: May 14, 2020, 10:31:19 AM »
What if I get the EIDL after the PPP? No option to keep the 30-year term? If they’re actually lending EIDL for 30 years, that sounds very appealing (beats the best available mortgage rates out there...)

No idea, but I think PPP is 1% interest while EIDL is 3.75%

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1064 on: May 14, 2020, 10:31:55 AM »
No idea, but I think PPP is 1% interest while EIDL is 3.75%

And I'm seeing 30 year mortgages with interest rates of 2.875% right now...

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1065 on: May 14, 2020, 10:33:12 AM »
And I'm seeing 30 year mortgages with interest rates of 2.875% right now...

I thought EIDL was 2.5%, I must be mistaken.
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1066 on: May 14, 2020, 10:34:31 AM »
I thought EIDL was 2.5%, I must be mistaken.

Pretty sure it's:
nonprofits- 2.75%
for profit- 3.75%

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1067 on: May 14, 2020, 11:02:33 AM »
If you get an actual EIDL loan it needs to be added to your PPP (unlike the grant which is subtracted) and rolled into one.
Only EIDL loans taken up to April 3 needs to be rolled in

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1068 on: May 14, 2020, 11:05:46 AM »
And I'm seeing 30 year mortgages with interest rates of 2.875% right now...
Btw where do you have this mortgage rate?

Offline beeweegee

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1069 on: May 14, 2020, 11:12:18 AM »
For those self-employed without a formal "payroll," how are you paying yourself (8/52 or whatever...) to be able to later show your payroll when applying for PPP forgiveness? Just transferring money from one account to another every 2 weeks? Sending yourself a check?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1070 on: May 14, 2020, 11:17:50 AM »
For those self-employed without a formal "payroll," how are you paying yourself (8/52 or whatever...) to be able to later show your payroll when applying for PPP forgiveness? Just transferring money from one account to another every 2 weeks? Sending yourself a check?

That's exactly the point of the 8/52- you have nothing you need to prove. It's automatic.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1071 on: May 14, 2020, 11:18:18 AM »
Btw where do you have this mortgage rate?

Refi rate. If you really want the name of the bank PM me.

Offline yitz1000

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1072 on: May 14, 2020, 11:36:08 AM »
That's exactly the point of the 8/52- you have nothing you need to prove. It's automatic.
And what about the remainder?

Offline SwellCindy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1073 on: May 14, 2020, 11:38:14 AM »
Where do I find info on what the 8/52 is? Thanks.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1074 on: May 14, 2020, 12:08:24 PM »
And what about the remainder?

You can use for rent/utilities/mortgage interest to the extent that they were deductible on your 2019 Schedule C.
You might only be allowed to use 25% instead of the full remaining 26%- no clarity on that yet.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1075 on: May 14, 2020, 12:14:29 PM »
Where do I find info on what the 8/52 is? Thanks.

Have him read these:

https://home.treasury.gov/system/files/136/Interim-Final-Rule-Additional-Eligibility-Criteria-and-Requirements-for-Certain-Pledges-of-Loans.pdf?fbclid=IwAR35Rl3xCA7M43VREb9JKgeq4_UHYTgt79kjC6_5pF_c9vUrEOFi6Eb_Chk

Quote
f. What amounts shall be eligible for forgiveness?
The amount of loan forgiveness can be up to the full principal amount of the loan plus accrued interest. The actual amount of loan forgiveness will depend, in part, on the total amount spent over the covered period on:
i. ....
ii. owner compensation replacement, calculated based on 2019 net profit as described in Paragraph 1.b. above, with forgiveness of such amounts limited to eight weeks’ worth (8/52) of 2019 net profit...



https://www.uschamber.com/report/independent-contractors-guide-cares-act-relief

Quote
5. Will this loan be forgiven?
Borrowers are eligible to have some or all of their loan forgiven.

How much?
An amount equal to how much you spent in the eight weeks following receipt of the loan for:

Owner compensation replacement, but not to exceed eight weeks of your 2019 compensation up to $100,000 (8/52 of the 2019 net profit up to $100,000)

Offline shapsam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1076 on: May 14, 2020, 12:26:44 PM »


https://www.uschamber.com/report/independent-contractors-guide-cares-act-relief
Just wanna make sure I get this right. Someone with a $100k 1099 for 2019, got $1000 EIDL grant and $20,833 for PPP, can't deduct rent/utilities/mortgage interest. All he has to do is pay back $6,448 and he's good to go?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1077 on: May 14, 2020, 12:29:32 PM »
Just wanna make sure I get this right. Someone with a $100k 1099 for 2019, got $1000 EIDL grant and $20,833 for PPP, can't deduct rent/utilities/mortgage interest. All he has to do is pay back $6,448 and he's good to go?

When you say "can't deduct rent/utilities/mortgage interest" do you mean he can't because he doesn't have any? or you're assuming he can't because of how you've interpreted the law?

Offline shapsam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1078 on: May 14, 2020, 12:42:02 PM »
When you say "can't deduct rent/utilities/mortgage interest" do you mean he can't because he doesn't have any? or you're assuming he can't because of how you've interpreted the law?
The only rent, utilities and mortgage he has is for his personal home and he didn't deduct these expenses on his 2019 schedule C.

Offline yitz1000

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1079 on: May 14, 2020, 12:44:31 PM »
The only rent, utilities and mortgage he has is for his personal home and he didn't deduct these expenses on his 2019 schedule C.
But can he legally deduct a portion? Does he have a office in his home?