Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 199040 times)

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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Offline avrumy

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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.

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?
Shout out to Meshugener!

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 you’re 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 won’t have issues with it afterwards.

Offline shapsam

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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 you’re 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 won’t 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

Offline aygart

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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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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1590 on: June 11, 2020, 11:12:23 AM »
What would be the advantage of an 8 week period?

If you've used all your funds in that time why not get it over and done with? Remember it's considered a loan until you receive forgiveness.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1591 on: June 11, 2020, 11:33:00 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

With a 24 week period it would be easy to use up 100% of the funds on payroll for a sole proprietor, wouldn’t this be an easy way around $8/52, or is that $15,xxx maximum a hard/legislated limit?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1592 on: June 11, 2020, 11:43:59 AM »
With a 24 week period it would be easy to use up 100% of the funds on payroll for a sole proprietor, wouldn’t this be an easy way around $8/52, or is that $15,xxx maximum a hard/legislated limit?

Based on the current understanding that the amount hasn't changed to 24/52:
The 8/52 is the hard limit- you can't exceed that amount in owner compensation no matter how many weeks you spread it over.
On top of that if your 8/52 exceeds $15,385, you're capped at this amount.

Offline aygart

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1593 on: June 11, 2020, 12:18:28 PM »
If you've used all your funds in that time why not get it over and done with? Remember it's considered a loan until you receive forgiveness.

If using a 24 week period and the funds are used at 12 weeks you can't apply for forgiveness then? You need to wait until the 24 weeks are up?
Feelings don't care about your facts

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1594 on: June 11, 2020, 12:23:55 PM »
If using a 24 week period and the funds are used at 12 weeks you can't apply for forgiveness then? You need to wait until the 24 weeks are up?
No need to wait. Heard at yesterdays hearing with Munchin.
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Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1595 on: June 11, 2020, 01:49:58 PM »
No need to wait. Heard at yesterdays hearing with Munchin.
the question is what date you need the have FTE back

Offline aygart

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1596 on: June 11, 2020, 02:25:23 PM »
the question is what date you need the have FTE back
explain please
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Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1597 on: June 11, 2020, 03:01:17 PM »
explain please
If you use 12 weeks and it ends on Aug 1 at what date do you need to have back your FTE count to avoid reduction? June 30, Aug 1, (Dec 31)?

Offline aygart

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1598 on: June 11, 2020, 03:13:39 PM »
If you use 12 weeks and it ends on Aug 1 at what date do you need to have back your FTE count to avoid reduction? June 30, Aug 1, (Dec 31)?
Meaning for someone who is going to let employees go?
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Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1599 on: June 11, 2020, 03:24:32 PM »
Meaning for someone who is going to let employees go?
Or are gone already and need to rehire them