SBA PPP and EIDL Small Business Loans (some money is forgivable)

[Mikes@Micro]

Just for loans under $150k, so far $79M went to Lakewood...

Wow! Very interesting. What else did you find?

[cgr]

Wow! Very interesting. What else did you find?

See attachment for 150k+ in NY & NJ.
Filtered by using typical terms such as Congregation, Torah, Yeshiva, etc.

[Mikes@Micro]

See attachment for 150k+ in NY & NJ.
Filtered by using typical terms such as Congregation, Torah, Yeshiva, etc.

Thanks. I wasnt intrested in unzipping that box link

[cgr]

See attachment for 150k+ in NY & NJ.
Filtered by using typical terms such as Congregation, Torah, Yeshiva, etc.

Disregard the blue highlights. Just realized I didn't remove formatting.

[yossig]

Disregard the blue highlights. Just realized I didn't remove formatting.

Was trying to figure out what you have with SATMAR

[cgr]

Was trying to figure out what you have with SATMAR

Lol. A lot happens to be, but I created that for someone with a particular interest.

[cgr]

PPP data made public. (over 150K)
https://sba.app.box.com/s/tvb0v5i57oa8gc6b5dcm9cyw7y2ms6pp

https://www.cnbc.com/2020/07/06/ppp-small-business-coroniavirus-loan-database-contains-errors.html

[shiframeir]

because of the 24 week extension, its now possible for large companies with lots of payroll etc to get all their money back even if they had layoffs/salary reductions, right? they could have like $15M in total costs now and even with reductions get back their full loan. am i missing something (do the reductions come off of the actual loan, not the total costs they have)?

[shulemw]

if i took advantage of the tax retention credit on my business can i still apply for a EIDl loan?

Whoever answers thanks in advance but please if you have a source to it would appreciate it

thanks

[cgr]

because of the 24 week extension, its now possible for large companies with lots of payroll etc to get all their money back even if they had layoffs/salary reductions, right? they could have like $15M in total costs now and even with reductions get back their full loan. am i missing something (do the reductions come off of the actual loan, not the total costs they have)?

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.

[cgr]

if i took advantage of the tax retention credit on my business can i still apply for a EIDl loan?

Whoever answers thanks in advance but please if you have a source to it would appreciate it

thanks

Yes, you can.

Section 2301(j) of the CARES Act states:
RULE FOR EMPLOYERS TAKING SMALL BUSINESS INTERRUPTION LOAN.— If an eligible employer receives a covered loan under paragraph (36) of section 7(a) of the Small Business Act (15 U.S.C. 636(a)), as added by section 1102 of this Act, such employer shall not be eligible for the credit under this section.

Sec. 1102. Paycheck protection program
Sec. 1110. Emergency EIDL grants.

As you can see only businesses taking Sec. 1102 (PPP) loans are restricted from taking ERTC.
Sec. 1110 (EIDL) is not included in the restriction.

[JuryDuty]

Can independent contractors apply for the grant?

[cgr]

Can independent contractors apply for the grant?

Yes.
If you enter 0 employees on the application you'll get 1k.

[shiframeir]

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.

yes, but if the top gross number is big enough (say 15M payroll on a 10m loan) than u could get away with cutting 33% of employees without a loss of forgiveness. surprising.

[meilich]

For some reason I never got the grant (applied for an LLC and wrote 0 employees), however I was approved for the loan, is there a way to cancel the application and reapply to try to receive the grant?

[cgr]

For some reason I never got the grant (applied for an LLC and wrote 0 employees), however I was approved for the loan, is there a way to cancel the application and reapply to try to receive the grant?

No.
Don't accept the loan and call in to check the status of your grant.

[cgr]

yes, but if the top gross number is big enough (say 15M payroll on a 10m loan) than u could get away with cutting 33% of employees without a loss of forgiveness. surprising.

Correct. That was the "mistake" of moving to a 24 week covered period and not forcing payroll levels to be maintained for the full 24 week duration. (although I do understand that it would be close to impossible to force that on businesses when you're only providing 2.5 months of payroll.)

[avrumy]

Anyone know if you can apply for the NJ EDA Grant if one got the EIDL?

[justaregularguy]

im getting msgs urging me to complete the loan application otherwise the application will be withdrawn. I already received the grant. do i ignore this email?

[cgr]

Anyone know if you can apply for the NJ EDA Grant if one got the EIDL?

https://forums.dansdeals.com/index.php?topic=117225.0#msg2270516