Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 178843 times)

Offline Hjay

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Jan 2016
  • Posts: 1119
  • Total likes: 71
  • DansDeals.com Hat Tips 1
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2490 on: December 27, 2020, 10:09:23 PM »
@cgr any reason to or not to apply for forgiveness now on round 1? Less than 150k. TIA

Offline AsherO

  • Global Moderator
  • Dansdeals Lifetime 20K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 24864
  • Total likes: 2568
  • DansDeals.com Hat Tips 75
    • View Profile
  • Location: NYC
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2491 on: December 27, 2020, 10:13:20 PM »
@cgr any reason to or not to apply for forgiveness now on round 1? Less than 150k. TIA

Wait for the simplified version? Why not?

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 2972
  • Total likes: 621
  • DansDeals.com Hat Tips 4
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2492 on: December 27, 2020, 10:40:45 PM »
@cgr any reason to or not to apply for forgiveness now on round 1? Less than 150k. TIA

Wait for the simplified version? Why not?

Actually certain things in the new bill are only available to those that did not receive forgiveness:
Additions to 'covered costs' definition (not relevant if you received 100% forgiveness)
Increase to previous loan if the full amount was not received previously (not relevant if you received the full amount you were eligible for)

Offline Yehudaa

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Mar 2018
  • Posts: 2377
  • Total likes: 979
  • DansDeals.com Hat Tips 82
    • View Profile
  • Location: YYZ
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2493 on: December 28, 2020, 11:56:19 AM »
Torah Umesorah sent something out to schools that their schools can get a commission if their parents/donors apply for ppp using a referral link (forum rules?!) provided by eastern union. Expect something from your kids school, might as well help them out. Was Eastern Union successful with applications last round?



Offline Zalc

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Nov 2014
  • Posts: 1515
  • Total likes: 53
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: USA
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2494 on: December 28, 2020, 12:10:06 PM »
If a business opened in March 2020, is it possible to get PPP?

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 2972
  • Total likes: 621
  • DansDeals.com Hat Tips 4
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2495 on: December 28, 2020, 12:10:44 PM »
If a business opened in March 2020, is it possible to get PPP?
No. Business must have been in operation as of 2/15/20.

Offline AsherO

  • Global Moderator
  • Dansdeals Lifetime 20K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 24864
  • Total likes: 2568
  • DansDeals.com Hat Tips 75
    • View Profile
  • Location: NYC
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2496 on: December 28, 2020, 12:11:56 PM »
No. Business must have been in operation as of 2/15/20.

Maybe @Zalc's business was operating in some limited capacity before the (full?) opening in March 2020.

Offline AsherO

  • Global Moderator
  • Dansdeals Lifetime 20K Presidential Platinum Elite
  • **********
  • Join Date: May 2008
  • Posts: 24864
  • Total likes: 2568
  • DansDeals.com Hat Tips 75
    • View Profile
  • Location: NYC
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2497 on: December 28, 2020, 12:12:36 PM »
Please post back here once you're aware of any banks accepting applications for the latest round of PPP, it's probably going to be a while.

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 2972
  • Total likes: 621
  • DansDeals.com Hat Tips 4
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2498 on: December 28, 2020, 12:16:32 PM »
Maybe @Zalc's business was operating in some limited capacity before the (full?) opening in March 2020.
That's fine then. If you're going to apply for a company that was incorporated after 2/15 though, you'll get rejected or flagged for fraud. I'm sure there's a workaround for entities that bought out functioning entities, but not sure how that works.

Offline Zalc

  • Dansdeals Lifetime Platinum Elite
  • *******
  • Join Date: Nov 2014
  • Posts: 1515
  • Total likes: 53
  • DansDeals.com Hat Tips 0
    • View Profile
  • Location: USA
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2499 on: December 28, 2020, 12:23:10 PM »
That's fine then. If you're going to apply for a company that was incorporated after 2/15 though, you'll get rejected or flagged for fraud. I'm sure there's a workaround for entities that bought out functioning entities, but not sure how that works.
C-corp was incorporated in December 2019, first payroll was in March 2020.

How does that work out?

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 2972
  • Total likes: 621
  • DansDeals.com Hat Tips 4
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2500 on: December 28, 2020, 12:42:53 PM »
C-corp was incorporated in December 2019, first payroll was in March 2020.

How does that work out?

You're eligible, but if you apply in Jan or Feb your loan will only have 10 or 11 months of payroll divided over 12 months, which will result in a lower monthly average, thereby lowering your eligible loan.
If you wait til March to apply you should have 12 months of payroll and thereby suffer no decrease when dividing by 12.

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 2972
  • Total likes: 621
  • DansDeals.com Hat Tips 4
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2501 on: December 28, 2020, 01:40:31 PM »
You're eligible, but if you apply in Jan or Feb your loan will only have 10 or 11 months of payroll divided over 12 months, which will result in a lower monthly average, thereby lowering your eligible loan.
If you wait til March to apply you should have 12 months of payroll and thereby suffer no decrease when dividing by 12.

Just published a preliminary loan calculator- available in my signature block below.
It will help with determining eligibly and loan amounts, and is especially good for scenarios as asked above.

Offline est

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Jun 2008
  • Posts: 370
  • Total likes: 6
  • DansDeals.com Hat Tips 0
  • Gender: Female
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2502 on: December 28, 2020, 02:53:56 PM »
If I did not apply for an EIDL before because the PPP made more sense it it worthwhile now to apply? If I remember correctly some of the money is a grant not a loan?

Offline est

  • Dansdeals Platinum Elite
  • ****
  • Join Date: Jun 2008
  • Posts: 370
  • Total likes: 6
  • DansDeals.com Hat Tips 0
  • Gender: Female
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2503 on: December 28, 2020, 02:54:43 PM »
And thanks @cgr for the calculator! Your services have been invaluable!!

Offline cgr

  • Dansdeals Presidential Platinum Elite
  • ********
  • Join Date: Aug 2017
  • Posts: 2972
  • Total likes: 621
  • DansDeals.com Hat Tips 4
    • View Profile
Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2504 on: December 28, 2020, 03:03:54 PM »
If I did not apply for an EIDL before because the PPP made more sense it it worthwhile now to apply? If I remember correctly some of the money is a grant not a loan?
The grant program isn't open yet, but once it is if you're eligible (low income community and 30% income reduction in any 8 weeks), you can get a $10k grant- this round won't be based on # of employees (the SBA is also required to reach out to those who got less than $10k, or who applied after the grant was depleted, to see if they are eligible for the new round).