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

[cgr]

Well said.
@cgr certainly does incredible work, but just the hosting bills alone to keep the lights on here cost 5 figures, and that's nothing compared to diaper costs for 5 newborns and toddlers between me and @jj1000

The DD affiliate link for PPP loans can be found here and as always, we deeply appreciate your support: https://www.dansdeals.com/more/coronavirus/pre-applications-ppp-funding-round-2-now-accepted/

Thanks @Dan
Believe me, I totally understand, and I think that one of the things that makes DDF so wonderful is that there aren't a million affiliate links floating around with everyone peddling their wares...

[cgr]

Can you clarify this? Is this the ERC? Would this also work for S corps?

Yep, ERC.
Per the IRS code posted by @TBD it should work for a) corporate owners b) spouses

[cgr]

are people not nervous about having affiliates and getting a piece of the commission? I saw some schools sending out letters that they must use EASTERN UNION for their PPP.

Huh? Schools are telling parents they MUST use their link for PPP? How does that work?

[aygart]

Well said.
@cgr certainly does incredible work, but just the hosting bills alone to keep the lights on here cost 5 figures, and that's nothing compared to diaper costs for 5 newborns and toddlers between me and @jj1000

The DD affiliate link for PPP loans can be found here and as always, we deeply appreciate your support: https://www.dansdeals.com/more/coronavirus/pre-applications-ppp-funding-round-2-now-accepted/

I did not realize that you had your own affiliate link for PPP.

[123-Rosh]

If someone is a partner in 2 separate entities, and also files a Schedule C for a separate business. Should each entity and sole proprietorship file its own PPP application? Each entity would only include the self employment income that the partner receives from that entity?

[Hjay]

Correct- although I'm still waiting for an SBA lawyer to get back to me on it to confirm.

Just because you're an affiliate to another company does not automatically mean that you're disqualified from PPP, it just means that you need to follow the affiliate rules (in most cases irrelevant like having less than 300 employees between affiliates) but in this case potentially relevant if you need to calculate a 25% reduction in a quarter, by aggregating gross receipts from all entities.

Interesting. Keep us posted on what they say.

 So just to make this a drop more complicated - when signing up health insurance through the NY exchange I was told (by Yeled V’yalda) I don’t need to include any “parsonage” income as income to see what I’m eligible for. Would parsonage income be included as gross receipts in this case?

Thank you very much for all your help!!

[cgr]

If someone is a partner in 2 separate entities, and also files a Schedule C for a separate business. Should each entity and sole proprietorship file its own PPP application? Each entity would only include the self employment income that the partner receives from that entity?

Partnerships MUST file applications together to include all partner's compensation in the loan.
So: both partnerships should file PPP applications for all its partner's, and you should file one yourself for your Schedule C.

To keep in mind:
-Aggregate rules
-Each owner-employee is capped at $20,833 in owner compensation forgiveness across all entities. Could still be valuable because of 60/40 rule and other eligible expenses that funds can be used on.

[123-Rosh]

Thank you for your answers.
Can a passive partner include his income for the PPP?

[iluv2travel]

Huh? Schools are telling parents they MUST use their link for PPP? How does that work?

I was wondering the same. My school didn't send any links but for those schools that are, what are they planning to do if you don't use their link? Kick your kid(s) out?

[TBD]

Keep in mind the $14k is earned and taxable income.

The $14k is not earned income it is just that the $14k paid in wages won't be a business expense, However the $20,000 w-2 for your spouse would be taxable income. If your business ends the year with a $20k loss than it will offset your spouse's income

[cgr]

Thank you for your answers.
Can a passive partner include his income for the PPP?

No. Only line 14 of K-1 1065 is eligible for PPP.

[cgr]

The $14k is not earned income it is just that the $14k paid in wages won't be a business expense, However the $20,000 w-2 for your spouse would be taxable income. If your business ends the year with a $20k loss than it will offset your spouse's income

It's earned income, but it's not an increase in earned income on the couple's return if the $28k is paid out of the husband's eventual earned income...

[cgr]

Interesting. Keep us posted on what they say.

 So just to make this a drop more complicated - when signing up health insurance through the NY exchange I was told (by Yeled V’yalda) I don’t need to include any “parsonage” income as income to see what I’m eligible for. Would parsonage income be included as gross receipts in this case?

Thank you very much for all your help!!

Will do.

Is this for a 1099/Schedule C individual?

[YitzyS]

I just got my PPP loan (round 1) forgiven!

I've said this here before, but I'll say it again. I had no clue that as a self-employed person I was eligible for PPP until a few days before the deadline, when I saw @cgr post her PSAs here on DDF. I emailed her a few questions, and she graciously responded, prompting me to apply. I only applied after she pressed me to, and I am not the beneficiary of thousands of dollars of a now-forgiven loan, which really helped me get through this nightmare of a year. (Unemployment never came through for me - thank you Gov. Phil Murphy and your unreachable system that still didn't pay out after two appeals and bouncing me back and forth for months.)

I'm sure I am representing a lot of people here when I say that no amount of 'thank you's or no amount of likes could suffice to express my appreciation to @cgr for the unbelievable work she put in to help so many people here. And thank you DDF for providing a forum for such assistance.

[lakewood34]

Getting it is pretty much considered having used it- remember it's the one entity where there's no differentiation between business and personal so even if you do "pay" yourself (which is not an SBA requirement) it still makes no material difference, unlike all other entity types.
Note: That does not mean that the SBA will recognize a Covered Period of less than 8 weeks- they won't.

so if a self employed person received the government money and never spent it and it is still sitting in his original  bank account he is considered as having used it and is eligible for a second loan and for forgiveness?

[iluv2travel]

I just got my PPP loan (round 1) forgiven!

I've said this here before, but I'll say it again. I had no clue that as a self-employed person I was eligible for PPP until a few days before the deadline, when I saw @cgr post her PSAs here on DDF. I emailed her a few questions, and she graciously responded, prompting me to apply. I only applied after she pressed me to, and I am not the beneficiary of thousands of dollars of a now-forgiven loan, which really helped me get through this nightmare of a year. (Unemployment never came through for me - thank you Gov. Phil Murphy and your unreachable system that still didn't pay out after two appeals and bouncing me back and forth for months.)

I'm sure I am representing a lot of people here when I say that no amount of 'thank you's or no amount of likes could suffice to express my appreciation to @cgr for the unbelievable work she put in to help so many people here. And thank you DDF for providing a forum for such assistance.

Which bank did you receive the loan from?

[YitzyS]

Which bank did you receive the loan from?

Kabbage

[iluv2travel]

Kabbage

My company got from Amex and they are still not allowing applications for loan forgiveness claiming they are still awaiting guidance.

But they own Kabbage now and people who got from Kabbage are having their loans forgiven so we're not getting what the issue is.

[oldguy]

Any reason to rush and do it right away? in other words, is the funding limited?

Anybody knows an answer to this?

[AsherO]

My company got from Amex and they are still not allowing applications for loan forgiveness claiming they are still awaiting guidance.

But they own Kabbage now and people who got from Kabbage are having their loans forgiven so we're not getting what the issue is.

Just because Amex owns Kabbage now doesn’t mean it’s the same department/people calling the shots for both groups of PPP loans.