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

[sillypainter]

Should a sole proprietor (with no employees) be hesitant to apply if they're not totally sure if they can with all certainty confirm the line that keeps coming up in bold letters
"current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant"?

Or is that line there more for the big boys?

SBA with VERY clear guidance said that anyone getting under 2 million is automatically eligible to say that they are uncertain in this economy.

[cgr]

SBA with VERY clear guidance said that anyone getting under 2 million is automatically eligible to say that they are uncertain in this economy.

Loans under 2MM won't be subject to additional scrutiny. That's not the same as saying they're all in good faith.

[joeberg]

Anyone else besides @thebudgetdeals got approval from Dime?

Signed loan docs Friday. They claimed they were funding today but I can't know because I have no access to the account they made me open, yet.

[sillypainter]

Loans under 2MM won't be subject to additional scrutiny. That's not the same as saying they're all in good faith.

Read the recently released SBA FAQ with VERY specific info saying that they will be considered as certifying in good faith if the loan was under 2 million.

Btw, I must say your passion to this subject is admirable, not sure why, but you take this whole thing to heart, thanks for your help around :-)

[cgr]

Read the recently released SBA FAQ with VERY specific info saying that they will be considered as certifying in good faith if the loan was under 2 million.

Correct, but again not the same as actually taking the loan in good faith. If you're lucky enough to get audited (for a different reason) you can get penalized for this as well.

Btw, I must say your passion to this subject is admirable, not sure why, but you take this whole thing to heart, thanks for your help around :-)

Finance is my jam. Sprinkle in some legal jargon and I'm hooked

[sillypainter]

Correct, but again not the same as actually taking the loan in good faith. If you're lucky enough to get audited (for a different reason) you can get penalized for this as well.

Finance is my jam. Sprinkle in some legal jargon and I'm hooked

Beg to defer.

See text below.

Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the necessity certification in good faith.


Audit will not hurt as they clearly said that they will understand that the business owner was or thought they are under stress due to the uncertainty in the marketplace.

[sillypainter]

Update. $150K EIDL loan was deposited this morning minus a $100 application fee.

[cgr]

Beg to defer.

See text below.

Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the necessity certification in good faith.


Audit will not hurt as they clearly said that they will understand that the business owner was or thought they are under stress due to the uncertainty in the marketplace.

The new information also confirms that borrowers that believe they made the certification in good faith will seemingly be given some leeway before the government imposes any penalties. If the borrower is subsequently determined to lack adequate basis for the good-faith certification, the SBA will require the loan be repaid while informing the appropriate lender that the loan is not eligible for forgiveness.
https://www.fisherphillips.com/resources-alerts-businesses-that-obtained-ppp-loans-under-2m

[cgr]

Update. $150K EIDL loan was deposited this morning minus a $100 application fee.

Mazel Tov!

[aygart]

The new information also confirms that borrowers that believe they made the certification in good faith will seemingly be given some leeway before the government imposes any penalties. If the borrower is subsequently determined to lack adequate basis for the good-faith certification, the SBA will require the loan be repaid while informing the appropriate lender that the loan is not eligible for forgiveness.
https://www.fisherphillips.com/resources-alerts-businesses-that-obtained-ppp-loans-under-2m

Are you trying to point out that their interpretation does not jive with the SBA language?

[AsherO]

Update. $150K EIDL loan was deposited this morning minus a $100 application fee.

Nice. Thanks for the update.

Did you get an EIDL advance? Did they deduct the amount of the advance from your loan amount?

[cgr]

Are you trying to point out that their interpretation does not jive with the SBA language?

I'm vacillating on the meaning of

Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the necessity certification in good faith.

It could mean like what @sillypainter is pointing out- that less than 2MM automatically means you need economically it regardless of the actual cash need, or it could mean like what Fisher and Phillips is saying that it doesn't make the loan be in good faith- you might need to repay if you have an audit and they deem that you didn't really need it.

[sillypainter]

Nice. Thanks for the update.

Did you get an EIDL advance? Did they deduct the amount of the advance from your loan amount?

I did get the advance, but they did not deduct it, was expecting that they will deduct it. They only took the $100 app fee :-)

[ExGingi]

I called SBA about the EIDL loan, and tier 1 support answered the call with no hold time.

She did confirm that the loan term starts at funding, not when docs are released. That I have sixty days to sign the docs, and that if I already have a PPP I don’t have to roll the EIDL loan into it, but that my PPP forgiveness would be reduced by the amount of my EIDL advance.

Once I get loan docs I’ll ask tier 2 (the ones who can access a loan applications and answer application-specific questions) and ask the same questions.

What's the number to talk to SBA tier 1 (or better yet tier 2) support.

I'm at wits end with Kabbage. Signed PPP loan docs more than 3 weeks ago and not funded yet. Can't get anywhere with Kabbage or with with the funding bank.

[A3]

Nice. Thanks for the update.

Did you get an EIDL advance? Did they deduct the amount of the advance from your loan amount?

If you did not get the advance it will added as a second deposit.
If you got the advance they are not deducting it.

[AsherO]

What's the number to talk to SBA tier 1 (or better yet tier 2) support.

I'm at wits end with Kabbage. Signed PPP loan docs more than 3 weeks ago and not funded yet. Can't get anywhere with Kabbage or with with the funding bank.

@ExGingi

(800) 659-2955‬ But it might only be for EIDL. I don’t know if there’s a direct number to tier 2.

[ExGingi]

@ExGingi

(800) 659-2955‬ But it might only be for EIDL. I don’t know if there’s a direct number to tier 2.

"You are caller number 28, expected wait time is 6 minutes". Let's see if they can help with PPP.

Unfortunately nothing.

[Hiding]

I made a mistake in my checking account number on my EIDL application, and therefore the advance didn't go through. I spoke to a tier 2 rep and I was told that I'll receive the advance after my loan is reviewed. Anyone know if this is correct? What if I don't take the loan, will I still receive the grant regardless?

[ilherman]

Signed loan docs Friday. They claimed they were funding today but I can't know because I have no access to the account they made me open, yet.

when did you apply?  what was ur loan number?

[TBD]

I know someone with a dime application in the 1600's received today his loan docs to sign, It took them 10 days to move up approx 200 applications