Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 141775 times)

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1815 on: June 24, 2020, 12:31:00 AM »
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.
Why do they ask this question for regular UI system??
If before the pandemic (regular UI system) I was terminated from a w-2 job, filed for UI, after few weeks started working SE 3 days a week earning $5,000 a week you would of still be eligible for partial UI according to the guidelines.
Don't see what changed now

Again, don't ask me common sense, I'm just saying what the guidelines are.

We have enough to suffer from all non-sense laws that the government makes, now that it comes out a benefit from it just take it... Don't leave legal money you are entitled to on the table to support all other non-sense programs from the government, because you don't understand it


I don't think that a person that is charged on bank fraud should sit 27 years in prison neither, If they claim THAT'S THE LAW! THIS IS ALSO "THE LAW"
« Last Edit: June 24, 2020, 12:36:22 AM by thebudgetdeals »

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1816 on: June 24, 2020, 01:25:42 AM »
9 The general loan forgiveness process described above applies only to loan forgiveness applications that are not reviewed by SBA prior to the lender’s decision on the forgiveness application.  A separate interim final rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities describes SBA’s procedures for reviewing PPP loan applications and loan forgiveness applications.c.Deferral Period and Forgiveness Section 3(c) of the Flexibility Act provides that if the borrower does not apply for forgiveness of a loan within 10 months after the last day of the covered period, the PPP loan is no longer deferred and the borrower must begin paying principal and interest.  Therefore, the following text is added as a new paragraph b. at the end of Part III.2:   b. When must a borrower apply for loan forgiveness or start making payments on a loan? A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan – including before the end of the covered period – if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness.  If the borrower applies for forgiveness before the end of the covered period and has reduced any employee’s salaries or wages in excess of 25 percent, the borrower must account for the excess salary reduction for the full 8-week or 24-week covered period, as described in Part III.5.

https://www.sba.gov/sites/default/files/2020-06/PPP--IFR--Revisions-to-Loan-Forgiveness-Interim-Final-Rule-and-SBA-Loan-Review-Procedures-Interim-Final-Rule-508.pdf

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1817 on: June 24, 2020, 01:27:29 AM »
In particular, C-corporation owner-employees are capped by the amount of their 2019 employee cash compensation and employer retirement and health insurance contributions made on their behalf.  S-corporation owner-employees are capped by the amount of their 2019 employee cash compensation and employer 13
retirement contributions made on their behalf, but employer health insurance contributions made on their behalf cannot be separately added because those payments are already included in their employee cash compensation.  Schedule C or F filers are capped by the amount of their owner compensation replacement, calculated based on 2019 net profit.44 See 85 FR 21747, 21749 (April 20, 2020).   General partners are capped by the amount of their 2019 net earnings from self-employment (reduced by claimed section 179 expense deduction, unreimbursed partnership expenses, and depletion from oil and gas properties) multiplied by 0.9235.  For self-employed individuals, including Schedule C or F filers and general partners, retirement and health insurance contributions are included in their net self-employment income and therefore cannot be separately added to their payroll calculation.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1818 on: June 24, 2020, 01:30:08 AM »
They are still working on options how to get rid of the 140 Billion that congress approved and nobody is taking, you want they should take back funds?
DOESNT WORK


Example:  A borrower is using a 24-week covered period.  This borrower reduced a full-time employee’s weekly salary from $1,000 per week during the reference period to $700 per week during the covered period.  The employee continued to work on a full-time basis during the covered period, with an FTE of 1.0.  In this case, the first $250 (25 percent of $1,000) is exempted from the loan forgiveness reduction.  The borrower seeking forgiveness would list $1,200 as the salary/hourly wage reduction for that employee (the extra $50 weekly reduction multiplied by 24 weeks).  If the borrower applies for forgiveness before the end of the covered period, it must account for the salary reduction for the full 24-week covered period (totaling $1,200).

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1819 on: June 24, 2020, 10:17:40 AM »
DOESNT WORK


Example:  A borrower is using a 24-week covered period.  This borrower reduced a full-time employee’s weekly salary from $1,000 per week during the reference period to $700 per week during the covered period.  The employee continued to work on a full-time basis during the covered period, with an FTE of 1.0.  In this case, the first $250 (25 percent of $1,000) is exempted from the loan forgiveness reduction.  The borrower seeking forgiveness would list $1,200 as the salary/hourly wage reduction for that employee (the extra $50 weekly reduction multiplied by 24 weeks).  If the borrower applies for forgiveness before the end of the covered period, it must account for the salary reduction for the full 24-week covered period (totaling $1,200).

Now that I have it all figured out in excel and I can track where the deductions do and don't affect forgiveness, here's my take:
In the above example the $1,200 deduction, even if it accounts for the full 24 weeks of deductions doesn't matter much because the owner was only funded ~10k for that employee, and over 24 weeks he's spending ~$16,800 even with the reduction in wages, so reducing forgiveness by $,1200 doesn't matter. The real issue is when you get to FTE reductions. If you follow the app, you'll see that you first total up everything, and then apply the FTE multiple. This means that the entire forgiveness hinges on the FTE multiple, and if reduced to (based on my quick calculations) .6 or less, you'll start seeing cuts to forgiveness.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1820 on: June 24, 2020, 10:19:39 AM »
9 The general loan forgiveness process described above applies only to loan forgiveness applications that are not reviewed by SBA prior to the lender’s decision on the forgiveness application.  A separate interim final rule on SBA Loan Review Procedures and Related Borrower and Lender Responsibilities describes SBA’s procedures for reviewing PPP loan applications and loan forgiveness applications.c.Deferral Period and Forgiveness Section 3(c) of the Flexibility Act provides that if the borrower does not apply for forgiveness of a loan within 10 months after the last day of the covered period, the PPP loan is no longer deferred and the borrower must begin paying principal and interest.  Therefore, the following text is added as a new paragraph b. at the end of Part III.2:   b. When must a borrower apply for loan forgiveness or start making payments on a loan? A borrower may submit a loan forgiveness application any time on or before the maturity date of the loan – including before the end of the covered period – if the borrower has used all of the loan proceeds for which the borrower is requesting forgiveness.  If the borrower applies for forgiveness before the end of the covered period and has reduced any employee’s salaries or wages in excess of 25 percent, the borrower must account for the excess salary reduction for the full 8-week or 24-week covered period, as described in Part III.5.

https://www.sba.gov/sites/default/files/2020-06/PPP--IFR--Revisions-to-Loan-Forgiveness-Interim-Final-Rule-and-SBA-Loan-Review-Procedures-Interim-Final-Rule-508.pdf

So based on this one can apply for forgiveness before the 24-week period is over, but must prorate any cuts for the full 24 weeks, even if they only used funds over say 10 weeks?
Interesting.

Offline Mordyk

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1821 on: June 24, 2020, 10:24:48 AM »
where can i still apply for a PPP for Schedule C?

Offline JACKBLUE

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1822 on: June 24, 2020, 10:32:57 AM »
Applied for a few loans under same email, when i open my account i can only see 1 loan, how do i add all others?

Offline avrumy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1823 on: June 24, 2020, 11:00:47 AM »
where can i still apply for a PPP for Schedule C?
first commerce

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1824 on: June 24, 2020, 11:15:48 AM »
Applied for a few loans under same email, when i open my account i can only see 1 loan, how do i add all others?
Kabbage.com?

Good luck!

I used the Gmail trick of adding a "." somewhere in the address to differentiate.
I've been waiting over 5 years with bated breath for someone to say that!
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1825 on: June 24, 2020, 11:20:54 AM »
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?

Bump

Offline bubkiz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1826 on: June 24, 2020, 11:57:05 AM »
where can i still apply for a PPP for Schedule C?
Bluevine. Applied 12:52 am. Got approval email 10:10 am.
Just make sure all your docs are in order so that it does not require manual review (they have clear instructions on the site).

Online ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1827 on: June 24, 2020, 12:17:44 PM »
Does anyone have info on how EIDL loan amounts are determined?

It seems like the only question is Gross Revenue. So if I'm a sole proprietor with gross revenue of $100,000 and I pay $48,000 of that to a corporation I own as a Management Fee. Can I apply for EIDL as a sole proprietor based on the $100,000 and then apply for my Management Corporation based on the $48,000 of its gross revenue?
I've been waiting over 5 years with bated breath for someone to say that!
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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1828 on: June 24, 2020, 12:24:31 PM »
Does anyone have info on how EIDL loan amounts are determined?

It seems like the only question is Gross Revenue. So if I'm a sole proprietor with gross revenue of $100,000 and I pay $48,000 of that to a corporation I own as a Management Fee. Can I apply for EIDL as a sole proprietor based on the $100,000 and then apply for my Management Corporation based on the $48,000 of its gross revenue?

You can apply for each business you own as long as they have a unique EIN.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1829 on: June 24, 2020, 12:36:46 PM »
You can apply for each business you own as long as they have a unique EIN.

And it's all based on gross revenue only?

How do they determine the loan amounts? If I apply as a Sole Proprietor, what restrictions are there on use of funds? Is it like PPP for sole proprietor with no deductions on the schedule C (other than the management fee?)
I've been waiting over 5 years with bated breath for someone to say that!
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