Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 215024 times)

Offline 123-Rosh

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2820 on: January 13, 2021, 12:10:05 PM »
Wait for the 22nd/23rd when the Ds are in power.

I don't believe Ds will help businesses. They will only help individuals making under $50k or so.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2821 on: January 13, 2021, 12:40:25 PM »
Why shouldn't we be concerned that there won't be enough funds for everyone who is eligible to get PPP?

Iím not concerned per se, though I do expect PPP funds to run out eventually. Apply early, follow up if approval takes too long, and youíll be fine.

Offline dovy2

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2822 on: January 13, 2021, 04:46:25 PM »
1) what matters is gross receipts, not necessarily a "loss".
2) The 25% reduction can be either in a specific quarter in 2020 vs the same quarter in 2019 or the entire year of 2020 vs 2019.

Not sure what you calculated, but many people don't realize this.

Are you sure about that part?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2823 on: January 13, 2021, 05:03:11 PM »
Are you sure about that part?
Yep. You can read the IFR yourself if you prefer :)

Having a 25% reduction in sales/receipts guarantees that you had at least that (and probably more) in a single quarter.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2824 on: January 13, 2021, 08:26:02 PM »
Any update about husband & wife being considered affiliates in regard to the 25% reduction?

It's become a big fight between lawyers on how that clause should be interpreted.
I'm afraid we'll need to wait for an IFR from the SBA.

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2825 on: January 13, 2021, 09:28:24 PM »
It's become a big fight between lawyers on how that clause should be interpreted.
I'm afraid we'll need to wait for an IFR from the SBA.
Same thing for an individual who has 2 businesses (1 corporation and 1 Schedule C)?
Personal income increased, though 1 business had a decrease.

Offline Deal Guy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2826 on: January 14, 2021, 01:02:13 AM »
When is the eidl grant coming?

Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2827 on: January 14, 2021, 08:21:40 AM »
When is the eidl grant coming?
That's the 10,000 dollar question
Monkeys don't fly unless you put them on airplanes

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2828 on: January 14, 2021, 08:41:14 AM »
Same thing for an individual who has 2 businesses (1 corporation and 1 Schedule C)?
Personal income increased, though 1 business had a decrease.
Correct.
If there's still a 25% reduction in one quarter when aggregating, go for PPP on the entity that has the reduction.

Open questions
If there isn't:
Can the entity that does have the reduction get it?
If there is:
Can both entities get it?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2829 on: January 14, 2021, 07:09:25 PM »
can someone please explain;

"Do you wish to refinance an EIDL into this ppp loan?"

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2830 on: January 14, 2021, 07:23:21 PM »
can someone please explain;

"Do you wish to refinance an EIDL into this ppp loan?"

It's only for EIDL loans between Jan 31 2020 and Apr 3 2020, so it's most likely irrelevant.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2831 on: January 14, 2021, 07:34:35 PM »
It's only for EIDL loans between Jan 31 2020 and Apr 3 2020, so it's most likely irrelevant.

Why would anyone want to do this? The only benefit I could think of is 1% interest rate instead of 3.75%, but a term of only 24 months.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2832 on: January 14, 2021, 07:53:56 PM »
Why would anyone want to do this? The only benefit I could think of is 1% interest rate instead of 3.75%, but a term of only 24 months.

It's not a choice and:
You can spend up to $46k of payroll per employee over 24 weeks, and 40% of what you allocate to payroll on other expenses, and get it forgiven.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2833 on: January 14, 2021, 08:01:52 PM »
It's not a choice and:
You can spend up to $46k of payroll per employee over 24 weeks, and 40% of what you allocate to payroll on other expenses, and get it forgiven.

Thatís sweet...

Downside is no 30-year loan if you wanted one.

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2834 on: January 14, 2021, 09:12:18 PM »
Correct.
If there's still a 25% reduction in one quarter when aggregating, go for PPP on the entity that has the reduction.

Open questions
If there isn't:
Can the entity that does have the reduction get it?
If there is:
Can both entities get it?
Thanks. Keep us posted when you know more.

Same questions with the EIDL grant?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2835 on: January 14, 2021, 10:05:33 PM »
It's not a choice and:
You can spend up to $46k of payroll per employee over 24 weeks, and 40% of what you allocate to payroll on other expenses, and get it forgiven.
What's not a choice?

Can I refi up to 46k from the eidl and leave the rest at 3.75?

If I can get 46k (plus 40% if I understood correctly) forgiven vs 150k loan for 30 yrs. I'll take it.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2836 on: January 14, 2021, 10:16:52 PM »
What's not a choice?

Can I refi up to 46k from the eidl and leave the rest at 3.75?

If I can get 46k (plus 40% if I understood correctly) forgiven vs 150k loan for 30 yrs. I'll take it.

You received an EIDL between Jan and April 3 2020?

Offline dovy2

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2837 on: January 14, 2021, 10:27:22 PM »
Can we deduct the EIDL advance when calculating the 25% loss?
(That part wasn't forgiven - and was paid back in the 4th quarter)
I'm trying to squeeze my way past the 25% mark from the third quarter, and the only way I can make it if I deduct the PPP loan AND the advance

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2838 on: January 14, 2021, 10:35:01 PM »
Can we deduct the EIDL advance when calculating the 25% loss?
(That part wasn't forgiven - and was paid back in the 4th quarter)
I'm trying to squeeze my way past the 25% mark from the third quarter, and the only way I can make it if I deduct the PPP loan AND the advance

It shouldn't be included in your calculation. Disregard.

Offline shapsam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2839 on: January 15, 2021, 07:32:28 AM »
For self employed/schedule C applying for the first time, does he need to wait 8 weeks or 24 weeks to apply for round 2?