Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 535542 times)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2840 on: January 15, 2021, 08:17:07 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?

Needs to wait a minimum of 8 weeks, but at that point he can apply as soon as he has used all funds correctly.

Note that there is barely enough time til March 31 to go for both rounds, so use funds efficiently and start working on your application before the 8 weeks are up, so that as soon as you used your funds correctly you can hit submit.

Offline incendia

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2841 on: January 15, 2021, 08:28:38 AM »
Needs to wait a minimum of 8 weeks, but at that point he can apply as soon as he has used all funds correctly.

Note that there is barely enough time til March 31 to go for both rounds, so use funds efficiently and start working on your application before the 8 weeks are up, so that as soon as you used your funds correctly you can hit submit.

Isn't the most efficient way for a Schedule-C person to use the funds is to write 1 check for owner comp?

If they need the funds for something else they can make a contribution or recapitalize the biz later.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2842 on: January 15, 2021, 08:31:26 AM »
Isn't the most efficient way for a Schedule-C person to use the funds is to write 1 check for owner comp?

If they need the funds for something else they can make a contribution or recapitalize the biz later.

Owner comp must be paid via payroll, and to use the whole thing for owner comp (assuming he's the only employee) you need to wait 2.5 months- you can't use it over 8 weeks. The maximum amount of funds you can use over 8 weeks for owner comp is the annual owner comp amount included in the loan, divided by 52, times 8.

Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2843 on: January 15, 2021, 09:01:43 AM »
I was sent my PPP form to e-sign and it says "Year of Establishment: 11-30--0001"

Is that wrong? Will it mess up my approval?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2844 on: January 15, 2021, 09:05:26 AM »
I was sent my PPP form to e-sign and it says "Year of Establishment: 11-30--0001"

Is that wrong? Will it mess up my approval?

Sounds like some coder screwed up a templated form/report. You’re already signing docs for your 2nd draw?
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Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2845 on: January 15, 2021, 09:11:08 AM »
Sounds like some coder screwed up a templated form/report. You’re already signing docs for your 2nd draw?
Yes.

Offline AsherO

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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2847 on: January 15, 2021, 09:13:50 AM »
I was sent my PPP form to e-sign and it says "Year of Establishment: 11-30--0001"

Is that wrong? Will it mess up my approval?

Standard procedure for sole props since there's no official "establishment date"

Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2848 on: January 15, 2021, 09:14:07 AM »
Aha, thanks

Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2849 on: January 15, 2021, 09:15:52 AM »
Which bank?
I don't know if it's right for me to post that here.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2850 on: January 15, 2021, 09:27:20 AM »
I don't know if it's right for me to post that here.

PM please? (I’m just curious, nothing further)
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Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2851 on: January 15, 2021, 09:28:15 AM »
Needs to wait a minimum of 8 weeks, but at that point he can apply as soon as he has used all funds correctly.

Note that there is barely enough time til March 31 to go for both rounds, so use funds efficiently and start working on your application before the 8 weeks are up, so that as soon as you used your funds correctly you can hit submit.
Targeted Eligibility
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
• Previously received a First Draw PPP Loan and will or has used the full amount only for
authorized uses;


https://www.sba.gov/sites/default/files/2021-01/Top-line%20Overview%20of%20Second%20Draw%20PPP%20%281.8.2021%29-508.pdf


Where does it state that have to wait 8 weeks?

Offline incendia

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2852 on: January 15, 2021, 09:29:51 AM »
Owner comp must be paid via payroll, and to use the whole thing for owner comp (assuming he's the only employee) you need to wait 2.5 months- you can't use it over 8 weeks. The maximum amount of funds you can use over 8 weeks for owner comp is the annual owner comp amount included in the loan, divided by 52, times 8.

Does it make sense to take a smaller loan to try to get a 2nd round?

Offline YitzyS

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2853 on: January 15, 2021, 09:33:06 AM »
PM please? (I’m just curious, nothing further)
Sent

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2854 on: January 15, 2021, 09:40:16 AM »
Targeted Eligibility
A borrower is generally eligible for a Second Draw PPP Loan if the borrower:
• Previously received a First Draw PPP Loan and will or has used the full amount only for
authorized uses;


https://www.sba.gov/sites/default/files/2021-01/Top-line%20Overview%20of%20Second%20Draw%20PPP%20%281.8.2021%29-508.pdf


Where does it state that have to wait 8 weeks?

...and have used or will use the full amount of the initial PPP loan for authorized purposes on or before the expected date of disbursement of the Second Draw PPP Loan.
https://home.treasury.gov/system/files/136/Interim-Final-Rule-Paycheck-Protection-Program-Second-Draw-Loans.pdf

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2855 on: January 15, 2021, 09:41:20 AM »
Does it make sense to take a smaller loan to try to get a 2nd round?

If you can spend 60% on owner comp and 40% on other expenses, you should be able apply the day you hit 8 weeks.

Offline 123-Rosh

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2856 on: January 15, 2021, 10:35:11 AM »
What will the PPP process be over the next few days and how long will each step of the process take?

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2857 on: January 15, 2021, 10:49:18 AM »
What will the PPP process be over the next few days and how long will each step of the process take?


That would vary by lender and your situation (whether it’s your first or second draw, whether you received the first draw from the same lender or not, complexity of your application etc.)
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Offline 123-Rosh

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2858 on: January 15, 2021, 10:51:39 AM »
That would vary by lender and your situation (whether it’s your first or second draw, whether you received the first draw from the same lender or not, complexity of your application etc.)

First time applying for PPP. LLC with payroll and k-1s for partners income.
What should I expect?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2859 on: January 15, 2021, 10:56:26 AM »
First time applying for PPP. LLC with payroll and k-1s for partners income.
What should I expect?

Calculate your average monthly payroll by adding wages (capped at 100k), plus benefits, plus partner's line 14a (reduced by section 179 expense deduction, unreimbursed partnership expenses, and oil and gas properties depletion, multiplied by 92.35%, capped at $100k).
Know how many employees you had as of Feb 15, 2020 (include active partners in this count).
Business name, email, and supporting docs.