Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 535688 times)

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1460 on: June 01, 2020, 04:40:32 PM »
Thanks for the info.

Anything else to look out for or concerns we should have in taking out these loans? Are there any other negatives to the EIDL Loans?

It’s not forgivable.

You’re required to keep all kinds of business records. They can audit your business at your expense. You have to keep records of how you spent the funds.

There are also a bunch of clauses under which they could technically find you in default, including if you don’t pay taxes. You can probably find the loan docs online and see if anything concerns you or your attorney.
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Offline mord1

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1461 on: June 02, 2020, 01:34:15 AM »
ppp forgiveness question-  If I use up all the ppp money for payroll within 4 weeks-  can I fire the employees then?  do they need to be on payroll on june 30th?

Offline RebTuvia

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1462 on: June 02, 2020, 01:39:20 AM »
ppp forgiveness question-  If I use up all the ppp money for payroll within 4 weeks-  can I fire the employees then?  do they need to be on payroll on june 30th?
As per my accountant they do have to be employed by the end of June, if you find differently please post back.   

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1463 on: June 02, 2020, 05:54:33 AM »
My PPP funds finally showed up.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1464 on: June 02, 2020, 06:16:32 AM »
My PPP funds finally showed up.

Woooot!!! BH!
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1465 on: June 02, 2020, 09:46:43 AM »
As per my accountant they do have to be employed by the end of June, if you find differently please post back.

I think either one of these is fine:

FTE lookback options:
Compare covered period FTE to February 15, 2019 through June 30, 2019 or January 1, 2020 through February 29, 2020 FTE
Compare June 30, 2020 to February 15, 2020
Compare last day of covered period to  January 1, 2020

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1466 on: June 02, 2020, 09:57:42 AM »
I think either one of these is fine:
By June 30 he needs to look back but he can't fire them before June 30 if he will be lower than any of the look back periods

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1467 on: June 02, 2020, 09:58:26 AM »
My PPP funds finally showed up.
Wondering if they will start the 8 week count from when they claim they funded it or from when it showed up

Offline mord1

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1468 on: June 02, 2020, 10:28:47 AM »
By June 30 he needs to look back but he can't fire them before June 30 if he will be lower than any of the look back periods
the exact question is -  do I need to show payroll on june 30th or I can show through 6/15  and be fine- and not get penalized or have any issues?

Offline Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1469 on: June 02, 2020, 11:20:58 AM »
at what point can a self employed person that received a PPP go back on unemployment?
#TYH

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1470 on: June 02, 2020, 12:49:26 PM »
at what point can a self employed person that received a PPP go back on unemployment?

I think the answer would be the same as the one to @mord1 's question.
If only the lookback periods matter, you can choose one and run with it. If June 30 is king, you might have to stay off til then.

Offline sillypainter

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1471 on: June 02, 2020, 12:51:58 PM »
My PPP funds finally showed up.

Mazel Tov! As my mom always says. "Ende gut, ales gut"

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1472 on: June 02, 2020, 02:20:58 PM »
I think the answer would be the same as the one to @mord1 's question.
If only the lookback periods matter, you can choose one and run with it. If June 30 is king, you might have to stay off til then.
-1
Full-Time Equivalency (FTE) Reduction Calculation
If you have not reduced the number of employees or the average paid hours of your employees between
January 1, 2020 and the end of the Covered Period,
check here ☐, skip lines 11 and 12 and enter 1.0 on line 13.


Offline Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1473 on: June 02, 2020, 02:52:00 PM »
-1
Full-Time Equivalency (FTE) Reduction Calculation
If you have not reduced the number of employees or the average paid hours of your employees between
January 1, 2020 and the end of the Covered Period,
check here ☐, skip lines 11 and 12 and enter 1.0 on line 13.
so if they extend it for 24 weeks then its after 24 weeks?
#TYH

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1474 on: June 02, 2020, 03:07:39 PM »
so if they extend it for 24 weeks then its after 24 weeks?

I'm assuming (hoping) if they extend you'll be able to elect a covered period ranging from your choice of dates up to 24 weeks.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1475 on: June 02, 2020, 03:09:16 PM »
-1
Full-Time Equivalency (FTE) Reduction Calculation
If you have not reduced the number of employees or the average paid hours of your employees between
January 1, 2020 and the end of the Covered Period,
check here ☐, skip lines 11 and 12 and enter 1.0 on line 13.

This is just one line of the application- there are multiple ways to calculate this and options to look at. What if you did reduce from Jan 1, but then paid in full/rehired for your covered period, but are now looking to reduce? And again, same applies to SE.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1476 on: June 02, 2020, 03:20:36 PM »
This is just one line of the application- there are multiple ways to calculate this and options to look at. What if you did reduce from Jan 1, but then paid in full/rehired for your covered period, but are now looking to reduce? And again, same applies to SE.
He was SE I believe from Jan 1 till after PPP, So he shouldn't have any issues about the June 30 date

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1477 on: June 02, 2020, 03:46:38 PM »
He was SE I believe from Jan 1 till after PPP, So he shouldn't have any issues about the June 30 date

Here's my concern:

According to the forgiveness application you don't need to keep payroll/FTE steady up to June 30 (assuming your Covered Period finishes before that)- you only need to choose one of the lookback periods and compare and that's it.

Now what happens to the lucky few who get audited and at that point the SBA comes back saying that there's no/reduced forgiveness because payroll/FTE wasn't at the correct levels on June 30? We've seen too much SBA flip-flop for me to be sure about this...

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1478 on: June 02, 2020, 07:46:14 PM »
Here's my concern:

According to the forgiveness application you don't need to keep payroll/FTE steady up to June 30 (assuming your Covered Period finishes before that)- you only need to choose one of the lookback periods and compare and that's it.

Now what happens to the lucky few who get audited and at that point the SBA comes back saying that there's no/reduced forgiveness because payroll/FTE wasn't at the correct levels on June 30? We've seen too much SBA flip-flop for me to be sure about this...
But you only need June 30 if you had a reduction between FEb-Apr vs Feb 15, If during that period you didn't reduce your workforce than by May 1 you can fire all your employees

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1479 on: June 02, 2020, 07:49:35 PM »
But you only need June 30 if you had a reduction between FEb-Apr vs Feb 15, If during that period you didn't reduce your workforce than by May 1 you can fire all your employees

I agree. I'm just in this constant state of apprehension about the SBA pulling a fast one...