Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 70995 times)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1800 on: June 23, 2020, 02:37:57 PM »
Looking for 5 volunteers to test my excel PPP forgiveness application.

Need a mix of businesses with owner comp only, owner comp + employees, as well as employees only. The more complicated your FTE/wage reduction situation the better.
If you're interested in participating email me at chaiplus1@gmail.com by Thursday- please do not PM me via DDF.
You'll be chosen based on your situation, not first come first serve.
If you don't hear back from me by Friday you have not been chosen to participate. Please don't follow up if you don't hear from me.

You can use the doc to test several scenarios to see how it increases or decreases your forgiveness amount. I'm doing this for the feedback (user friendliness and accuracy), not as a free giveaway to shore up popularity- please only participate if you're interested in communicating your thoughts.


Include in your email:
Loan Amount (Field will be locked and you will not be able to change at a later date)
Loan Date (Field will be locked and you will not be able to change at a later date)
Will you have an FTE or wage reduction from 02/15/20 through the end of your expected forgiveness application submission date?

Offline Square

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SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1801 on: June 23, 2020, 04:03:28 PM »
For EIDL, what will increase the loan amount, a higher or lower COGS?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1802 on: June 23, 2020, 04:09:02 PM »
For EIDL, what will increase the loan amount, a higher or lower COGS?

Lower

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1804 on: June 23, 2020, 08:11:37 PM »
   If I was approved for a loan for my business, while I used some of the funds towards three weeks already, and now that work is slow didn't issue any checks to any of my employees for the past week.

   Curious can I continue to claim unemployment even though I had been approved for a loan.
 Meaning they extended the deadline for when you have to use the loan.
 So while I have no work instead of me loosing on everything,   can I get unemployment benefit, meaning by filing the weekly claim?
Don't try to be someone else , be who you are because everyone else is taken.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1805 on: June 23, 2020, 08:33:24 PM »
So while I have no work instead of me loosing on everything,   can I get unemployment benefit, meaning by filing the weekly claim?

Your employees can definitely file if they're not receiving a paycheck.
As for yourself, if the total received divided by 24 weeks (assuming you're choosing this longer period) is less than $504 I think you should be able to claim no problem. I'm not sure if you can end-load the amount to only count as "earnings" for the last 2.5 months instead of over 24 weeks, although I can see good reason as to why you can make that claim since they only funded you for 2.5 months.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1806 on: June 23, 2020, 08:39:10 PM »
Your employees can definitely file if they're not receiving a paycheck.
As for yourself, if the total received divided by 24 weeks (assuming you're choosing this longer period) is less than $504 I think you should be able to claim no problem. I'm not sure if you can end-load the amount to only count as "earnings" for the last 2.5 months instead of over 24 weeks, although I can see good reason as to why you can make that claim since they only funded you for 2.5 months.
Not quite sure if I understood the last few sentences of your post.

  If I would take the loan and divide  by 24 weeks I would be way over 504 for a week.

 Now my question was primarily if I pause the loan Usage, and continue when I have work again.

 As well I'm using the loan to pay my workers and towards business expenses.
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1807 on: June 23, 2020, 08:50:54 PM »
Not quite sure if I understood the last few sentences of your post.

  If I would take the loan and divide  by 24 weeks I would be way over 504 for a week.

 Now my question was primarily if I pause the loan Usage, and continue when I have work again.

 As well I'm using the loan to pay my workers and towards business expenses.

Here's what I'm trying to say:
If the amount advanced for owner comp specifically (2.5X your 2019 monthly earnings) exceeds $504 weekly, it's possible that you can make the case to say that since they only advanced 2.5 months of payroll, you can spend that 2.5X of owner comp in any 2.5 months you choose- in your case the last 2.5 months of your 24 weeks, instead of "earning" it over 24 weeks where you lose out on UI when the additional $600 is available.

Neither the SBA nor the DOL have issued specific guidance on this, so it's impossible to say exactly what's possible and allowed and what's not- I'm hypothesizing here and trying to see the situation from different angles and what case you can make to get the best possible outcome.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1808 on: June 23, 2020, 10:11:29 PM »
Here's what I'm trying to say:
If the amount advanced for owner comp specifically (2.5X your 2019 monthly earnings) exceeds $504 weekly, it's possible that you can make the case to say that since they only advanced 2.5 months of payroll, you can spend that 2.5X of owner comp in any 2.5 months you choose- in your case the last 2.5 months of your 24 weeks, instead of "earning" it over 24 weeks where you lose out on UI when the additional $600 is available.

Neither the SBA nor the DOL have issued specific guidance on this, so it's impossible to say exactly what's possible and allowed and what's not- I'm hypothesizing here and trying to see the situation from different angles and what case you can make to get the best possible outcome.
Gotchya, thanks for clarifying!
 I hear.

 So from your perspective what would you do in this scenario?

Would you go ahead and claim?
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1809 on: June 23, 2020, 11:34:39 PM »
Got a $1000 EIDL grant, can that effect PUA in NY?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1810 on: June 23, 2020, 11:38:18 PM »
Gotchya, thanks for clarifying!
 I hear.

 So from your perspective what would you do in this scenario?

Would you go ahead and claim?

It's hypothetical as this doesn't apply to me, so I'll tell you straight up I'd find a way to make it work somehow, if I felt I had a good argument in place.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1811 on: June 23, 2020, 11:39:12 PM »
Got a $1000 EIDL grant, can that effect PUA in NY?
If used for payroll, yes. If used for utilities/rent etc and it doesn't drive up your bottom line and put you over the earnings limit, you're good.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1812 on: June 23, 2020, 11:40:13 PM »
It's hypothetical as this doesn't apply to me, so I'll tell you straight up I'd find a way to make it work somehow, if I felt I had a good argument in place.
I hear you.
  Thanks for the info.

 Will run it by my accountant and see what he feels I should do.
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1813 on: June 24, 2020, 12:22:36 AM »
I hear you.
  Thanks for the info.

 Will run it by my accountant and see what he feels I should do.
It was argued already upthread that earnings from self employment even above $504 doesnt effect UI benefits. (Don'y ask me why but here is the source)
IMO you are good to go


https://www.labor.ny.gov/formsdocs/factsheets/pdfs/p836.pdf

IF YOU WORKED ON ANY DAYS, YOU WILL BE ASKED:
EXCLUDING EARNINGS FROM SELF-EMPLOYMENT,
DID YOU EARN MORE THAN $504?
If you worked at all during the week, you must indicate if
you earned more than $504 gross before taxes. This does
not include any money earned in self-employment
.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1814 on: June 24, 2020, 12:26:23 AM »
It was argued already upthread that earnings from self employment even above $504 doesnt effect UI benefits. (Don'y ask me why but here is the source)
IMO you are good to go


https://www.labor.ny.gov/formsdocs/factsheets/pdfs/p836.pdf

IF YOU WORKED ON ANY DAYS, YOU WILL BE ASKED:
EXCLUDING EARNINGS FROM SELF-EMPLOYMENT,
DID YOU EARN MORE THAN $504?
If you worked at all during the week, you must indicate if
you earned more than $504 gross before taxes. This does
not include any money earned in self-employment
.

Counter-argument: that question is a relic from the regular UI system and is not the intent for PUA certifications.

Honest question here: do you think that you can earn a few thousand a week in earned income and still be eligible for PUA? Again, DUA rules which PUA is based on and NY has clearly published guidelines on this and clearly states that the $504 applies to SE income.