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

[cgr]

What does it mean "a minimum of 8 weeks"?

If a self employed schedule c or partnership with zero employees, got the ppp, and immediately transferred the entire amount into their personal checking account, did they satisfy the minimum 8 weeks, since they did it all in just one day, and not 8 or more weeks?

Means that before 8 weeks the SBA does not consider the funds to be used correctly, regardless when you actually paid it out. This is relevant for those who seek to go for Second Draw after applying for First Draw in this round.

[Deal Guy]

Thank you!

[123-Rosh]

Thank you @cgr for all your answers! I hope to use your link for PPP.

[Hjay]

For a round 2 app under 150k do I need to have details of the 25% reduction for the application or I’ll just need it for forgiveness?

[cgr]

For a round 2 app under 150k do I need to have details of the 25% reduction for the application or I’ll just need it for forgiveness?

According to the SBA for loans under $150k you'll only need to submit documentation of the 25% reduction along with forgiveness.
Individuals banks might require this before, although I haven't seen anyone do that yet.

[AsherO]

According to the SBA for loans under $150k you'll only need to submit documentation of the 25% reduction along with forgiveness.
Individuals banks might require this before, although I haven't seen anyone do that yet.

So the single page forgiveness was only for the first draw? I didn’t realize that.

[cgr]

So the single page forgiveness was only for the first draw? I didn’t realize that.

No. For forgiveness the single page application for second draw loans under $150k still applies.
Separately there's a requirement to prove the 25% reduction.

[AsherO]

No. For forgiveness the single page application for second draw loans under $150k still applies.
Separately there's a requirement to prove the 25% reduction.

So it's "streamlined forgiveness", but with a hiccup/speedbump/exception. Cute.

[123-Rosh]

Do we know when the SBA will open the EIDL Grant application portal?

[TBD]

So it's "streamlined forgiveness", but with a hiccup/speedbump/exception. Cute.

and when the 24 weeks arrived a new law will be passed that loans under 150k don't require to show documentation, and except of the rushing people who applied already for forgiveness for the 1st round, be patient and let the political process play out

[TBD]

Heard that some banks don't plan to participate at all in PPP2 since it was such a hassle for them especially the forgiveness part. They had to reassign loan officers to deal with this, instead of focusing to bring in new business. It's just not worth for them.

[ShimshonK]

Heard that some banks don't plan to participate at all in PPP2 since it was such a hassle for them especially the forgiveness part. They had to reassign loan officers to deal with this, instead of focusing to bring in new business. It's just not worth for them.

Which banks have you heard that about?

[AsherO]

Heard that some banks don't plan to participate at all in PPP2 since it was such a hassle for them especially the forgiveness part. They had to reassign loan officers to deal with this, instead of focusing to bring in new business. It's just not worth for them.

Hard to believe with $2500 per loan. Maybe for a small bank it’s not worth it, but once you’re scaling its a boon!

[cgr]

Heard that some banks don't plan to participate at all in PPP2 since it was such a hassle for them especially the forgiveness part. They had to reassign loan officers to deal with this, instead of focusing to bring in new business. It's just not worth for them.

Every bank I spoke to was super excited about their upcoming ownership of a private island...

[TBD]

Hard to believe with $2500 per loan. Maybe for a small bank it’s not worth it, but once you’re scaling its a boon!

When you have limited staff due to covid and you have to assign senior loan officers who usually work on 6-7 digit loans to deal with this, $2,500 is not worth the hassle

[TBD]

Every bank I spoke to was super excited about their upcoming ownership of a private island...

How many banks from the 5k+ who processed last time, did you speak to??

[TBD]

Hard to believe with $2500 per loan. Maybe for a small bank it’s not worth it, but once you’re scaling its a boon!

Locking in a $5,000,000 business line of credit where the client will pay 5-8% for the next 10 years is worth more than a few hundred small PPP loans. And remember that the banks have to deal with the government also. It's a very big hassle

[cgr]

Locking in a $5,000,000 business line of credit where the client will pay 5-8% for the next 10 years is worth more than a few hundred small PPP loans. And remember that the banks have to deal with the government also. It's a very big hassle

There's 0 risk on this.

[cgr]

How many banks from the 5k+ who processed last time, did you speak to??

You got me... less than .5%...

[TBD]

There's 0 risk on this.

but there is hours and hours of work for this.
I mean I'm not offending anyone hopefully, but the clientele on this forum is not from where Chase, is reporting 35 Billion dollars in profit a year, when you have to suddenly shift employees working on those businesses to deal with $20,000 PPP loan, for some banks its just not worth. (And NO! I don't know if Chase will or will not process just an example)