Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 74487 times)

Offline yitz1000

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1575 on: June 10, 2020, 10:45:18 AM »
Based on the new guidelines released, can employees be laid off now to collect partial unemployment since the FTE count can be looked at later?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1576 on: June 10, 2020, 10:58:44 AM »
Based on the new guidelines released, can employees be laid off now to collect partial unemployment since the FTE count can be looked at later?

There's also the salary reduction rule to keep in mind.

On the original forgiveness application it looks at wage rates for each employee from January 1 through March 31, 2020 and compares it to the wage rate during the 8 week covered period to determine if salary levels were maintained and not reduced by more than 25%. This only applies to employees with an annualized salary of less than $100,000.

There was an additional safe harbor in place if the borrower can return wage levels by June 30, 2020 to the level it was as of February 15, 2020 the forgiveness will not be reduced.

My understanding is that everything with the date of June 30, 2020 on the forgiveness application can now be replaced by December 31, 2020, although we've yet to see anything from the SBA directly and how they are deciding to interpret the new laws.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1577 on: June 10, 2020, 11:03:39 AM »
Found this forgiveness calculator online- no idea how accurate it is.
https://coastapp.com/ppp-forgiveness/

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1578 on: June 10, 2020, 11:46:23 AM »
Amazing what Cross River did. 4th highest amount of loans in the country! Wow!!
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Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1579 on: June 10, 2020, 12:41:13 PM »
Amazing what Cross River did. 4th highest amount of loans in the country! Wow!!

Cross River found the business and is the bank of record, Kabbage seems to have done most (all?) of the processing work.
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Offline yitz1000

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1580 on: June 10, 2020, 12:47:57 PM »
Cross River found the business and is the bank of record, Kabbage seems to have done most (all?) of the processing work.

BlueVine also processed for Cross River

Offline Ygold

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1581 on: June 10, 2020, 05:56:46 PM »
If you have less than 500 employees you can apply. If you applied for a different business that you also own there are some additional rules to loan/forgiveness.

No payroll:
A sole prop can apply using a filed or draft 2019 Schedule C. Your loan amount will be line 31 divided by 12 times 2.5.
You'll get 8/52 (capped at $15,385) forgiven as "payroll".
You can use the remaining ~26% on rent/mortgage interest/utilities if it was deducted on your 2019 Schedule C.


Can any Sole Prop apply? Or do you need to show or have loss due to Covid-19?
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1582 on: June 10, 2020, 06:45:03 PM »
Can any Sole Prop apply? Or do you need to show or have loss due to Covid-19?
sole prop can apply

Offline Ygold

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1583 on: June 10, 2020, 07:01:57 PM »
sole prop can apply

Even a sole prop, that can't show loss due to covid-19, such as an Amazon or other marketplace, seller?
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Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1584 on: June 10, 2020, 07:23:14 PM »
Can any Sole Prop apply? Or do you need to show or have loss due to Covid-19?

When you apply you certify in good faith that this loan would help support your business due to current economic uncertainty, or something to that effect.
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Offline Ygold

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1585 on: June 10, 2020, 07:26:12 PM »
When you apply you certify in good faith that this loan would help support your business due to current economic uncertainty, or something to that effect.
So you don't need to have any loss or anything, you just need to be "uncertain" about the future due to Covid-19. So if you are worried that the economy is slowing due to the effects of Covid-19, and hence your sales are slowing, you can apply for the PPP?
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Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1586 on: June 10, 2020, 07:28:36 PM »
So you don't need to have any loss or anything, you just need to be "uncertain" about the future due to Covid-19. So if you are worried that the economy is slowing due to the effects of Covid-19, and hence your sales are slowing, you can apply for the PPP?

Sounds right. Read the certification in the application and decide if youre comfortable putting your signature on it. The SBA said that smaller PPP loan applicants (I think up to $200k) will be considered to have certified that statement in good faith and they wont have issues with it afterwards.
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1587 on: June 10, 2020, 07:34:16 PM »
Sounds right. Read the certification in the application and decide if youre comfortable putting your signature on it. The SBA said that smaller PPP loan applicants (I think up to $200k) will be considered to have certified that statement in good faith and they wont have issues with it afterwards.
Up to 2 million.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1588 on: June 11, 2020, 10:53:28 AM »
The SBA hasn't released a new set of interim rules yet, but they did release this:
https://home.treasury.gov/system/files/136/PPP-IFR-Revisions-to-First-Interim-Final-Rule.pdf
Based on my interpretation (although I'd wait for the interim rules to be sure), it looks like for loans originated prior to 06/05/20 borrowers can elect an 8 week or 24 week covered period- nothing in between. For loans originated after 06/05/20, borrowers will receive a 24 week covered period (not to go past 12/31/20)- they cannot elect a shorter period.

They've also revised the borrower and lender applications:
https://home.treasury.gov/system/files/136/PPP-Borrower-Application-Form-Revised-June-2020.pdf
https://home.treasury.gov/system/files/136/PPP-Lenders-Application-Form-PPP-Loan-Guaranty-Revised-June-2020.pdf

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1589 on: June 11, 2020, 11:03:51 AM »
The SBA hasn't released a new set of interim rules yet, but they did release this:
https://home.treasury.gov/system/files/136/PPP-IFR-Revisions-to-First-Interim-Final-Rule.pdf
Based on my interpretation (although I'd wait for the interim rules to be sure), it looks like for loans originated prior to 06/05/20 borrowers can elect an 8 week or 24 week covered period- nothing in between. For loans originated after 06/05/20, borrowers will receive a 24 week covered period (not to go past 12/31/20)- they cannot elect a shorter period.

They've also revised the borrower and lender applications:
https://home.treasury.gov/system/files/136/PPP-Borrower-Application-Form-Revised-June-2020.pdf
https://home.treasury.gov/system/files/136/PPP-Lenders-Application-Form-PPP-Loan-Guaranty-Revised-June-2020.pdf


What would be the advantage of an 8 week period?
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