Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 265075 times)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2080 on: July 14, 2020, 01:23:24 PM »
Was able to apply for EIDL this morning
Are they still offering the grant?

You can still apply for the loan but as of now the grant is not available.

Offline cholent

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2081 on: July 14, 2020, 01:25:49 PM »
Cross River just told a friend who wanted to apply for a ppp based on Jan Feb 20 as a new sole proprietor that can only be done for "businesses" (their words) not sole proprietorship. Anyone heard anything like that? I'm not seeing any such distinction in the SBA guidance on this.
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Offline nafnaf12

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2082 on: July 14, 2020, 01:27:58 PM »
You can still apply for the loan but as of now the grant is not available.
thanks, I'm not looking for loan
Was hoping to get the grant, if it does become available again would I be eligible? Would it depend on if I take the loan now? Or decline?
A smooth sea never made a skilled sailor.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2083 on: July 14, 2020, 01:51:15 PM »
Cross River just told a friend who wanted to apply for a ppp based on Jan Feb 20 as a new sole proprietor that can only be done for "businesses" (their words) not sole proprietorship. Anyone heard anything like that? I'm not seeing any such distinction in the SBA guidance on this.

They're wrong as far as the PPP guidelines go- there are definitely banks accepting applications for sole props that were only in operation in Jan and Feb, or for sole props who were only in operation in late 2019 and prefer to use Jan and Feb instead.
I don't think they have an obligation to accept, but if you think showing them proof will help show them this (Question 10):
https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2084 on: July 14, 2020, 02:25:26 PM »
Someone got approved for 50K EIDL LOAN, He send in Tax return to appeal the amount to receive more, while calling in to check his status, they told him that still no update, however If he won't accept his current amount, the 30 days will pass and his funds will expire? Is it true? If funds expire can you apply again with the updated information?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2085 on: July 14, 2020, 02:42:38 PM »
Someone got approved for 50K EIDL LOAN, He send in Tax return to appeal the amount to receive more, while calling in to check his status, they told him that still no update, however If he won't accept his current amount, the 30 days will pass and his funds will expire? Is it true? If funds expire can you apply again with the updated information?

I was told multiple times that the loan must first be accepted in order for an increase to be processed.

I'm not sure about filing again- it might require a call to revive the application since the system will most likely kick any new applications as duplicate.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2086 on: July 14, 2020, 02:58:53 PM »
I was told multiple times that the loan must first be accepted in order for an increase to be processed.

I'm not sure about filing again- it might require a call to revive the application since the system will most likely kick any new applications as duplicate.
Do you know someone who actually got an increase with an appeal?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2087 on: July 14, 2020, 05:32:48 PM »
Do you know someone who actually got an increase with an appeal?

No. In the process with a few but no one has actually gotten to the additional funding stage. I'm going to have a talk with the guy who's farthest along with the process to see if he'll do a follow up and if he does I'll track how long it takes.

Offline WhiteWolf

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2088 on: July 14, 2020, 06:35:39 PM »
Yes. I accepted by mistake and now having a hard time figuring out how to pay it back immediately
Go to pay.gov
And make a payment through  Form Number:1201
You can open up a account on https://caweb.sba.gov/cls/dsp_login.cfm to see the loan and how much is left!

Offline cholent

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2089 on: July 14, 2020, 09:15:09 PM »
Go to pay.gov
And make a payment through  Form Number:1201
You can open up a account on https://caweb.sba.gov/cls/dsp_login.cfm to see the loan and how much is left!
Thank you! Much appreciated
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Offline RebTuvia

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2090 on: July 15, 2020, 02:47:38 AM »
Is it possible to apply for the Eidl with a new business without any filed income or employees?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2091 on: July 15, 2020, 08:32:52 AM »
Is it possible to apply for the Eidl with a new business without any filed income or employees?
You don't need to have a filed a return or have employees, but you must have been operational on January 31, 2020.

Offline RebTuvia

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2092 on: July 15, 2020, 04:07:08 PM »
You don't need to have a filed a return or have employees, but you must have been operational on January 31, 2020.
Thanks.
Operational or active? It was opened in Nov, but no bank account. Also what’s the maximum amount for such a LLC?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2093 on: July 15, 2020, 04:14:59 PM »
Thanks.
Operational or active? It was opened in Nov, but no bank account. Also what’s the maximum amount for such a LLC?

The term used is operational.
The amount will depends on Gross Revenue and COGS. If it's a business with no COGS, you'll get 50% of Gross Revenue (maxes out at 150k).

Offline Fiddy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2094 on: July 15, 2020, 05:32:32 PM »
Is anyone familiar with the $25k+ UCC1 lien on the eidl loans? Will this affect real estate owned by borrowing entity?
If that’s case, one may need consent from SBA to sell or refinance property

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2095 on: July 15, 2020, 07:46:12 PM »
Is anyone familiar with the $25k+ UCC1 lien on the eidl loans? Will this affect real estate owned by borrowing entity?
If that’s case, one may need consent from SBA to sell or refinance property
Yes

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2096 on: July 15, 2020, 07:46:26 PM »
E.14.Is a business operating as a sole proprietorship eligible for a Main Street loan?
No.  Sole proprietorships that are not otherwise established under law as a “Business,” as defined in question E.2,  are not Eligible Borrowers.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2097 on: July 15, 2020, 07:49:13 PM »
G.20. Can an otherwise Eligible Borrower receive a Main Street loan if it was not in operation during 2019?
In order to receive a Main Street loan, an Eligible Borrower must have a financial record upon which calculation of an adjusted 2019 EBITDA can be based.6  If an otherwise Eligible Borrower was established before March 13, 2020, but does not have a financial history sufficient to establish that it was in sound financial condition before the onset of the pandemic (i.e., using an adjusted 2019 EBITDA that covers at least part of the calendar year 2019), it will not qualify for a Main Street loan.  Entities that were established before March 13, 2020, and have no financial record of their own, but have clear predecessors or subsidiaries that can be referenced to calculate adjusted 2019 EBITDA can use the financial records of such predecessors or subsidiaries.  For example, if a potential Main Street borrower was established on February 1, 2020,  thereafter purchased an existing business and is, in the judgment of an Eligible Lender, that business’s successor, it may use the predecessor business’s 2019 financial records.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2098 on: July 15, 2020, 07:49:23 PM »
 G.21. Are there any prohibitions on the use of proceeds of a Main Street loan?
 The Program is intended to help small and medium-sized companies that were in sound financial condition prior to the onset of the COVID-19 pandemic maintain their operations and payroll until conditions normalize.  However, Program loans may not be used for:  •the benefit of an Eligible Borrower’s foreign parents, affiliates,  or subsidiaries (see question E.9); or to refinance or accelerate payment of existing debt, except (i) at the time of originationof an MSPLF Loan if the debt was owed to a different, unaffiliated lender (see question C.4), or (ii) under the limited exception for mandatory and due debt and interest payments after the origination of the Main Street loan (see question H.3). In addition, under the Program an Eligible Borrower may not use any funds (including the proceeds of a Main Street loan) during the term of the loan (and, in some cases, for 12 months after the Main Street loan is repaid) for the following reasons:  •paying dividends, distributing capital, repurchasing equity, or paying compensation over specified thresholds, except as provided under section 2.D of the MSNLF,  MSPLF, or MSELF Borrower Certifications and Covenants or these FAQs (see question H.2); or •repaying other debt ahead of schedule (see section 5.A of the MSNLF,  MSPLF, or MSELFBorrower Certifications and Covenants and question H.3).

Offline est

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2099 on: July 16, 2020, 12:04:40 PM »
Anyone with a self employed partnership have luck getting PPP with bluevine? I sent in the application with my k1, and now they are requesting my 940/941. I don’t have employees... there’s no one to speak to....