Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 216289 times)

Offline 123-Rosh

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2860 on: January 15, 2021, 11:19:14 AM »
What should I expect in terms of the process?
Let's say the SBA opens up the portal on Monday. Do the banks start processing that day? Will the SBA approve by Wednesday? etc.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2861 on: January 15, 2021, 11:22:15 AM »
What should I expect in terms of the process?
Let's say the SBA opens up the portal on Monday. Do the banks start processing that day? Will the SBA approve by Wednesday? etc.

I have a bank that opened today at 9am. They push through applications in the order received, and expect to have funds deposited within 24-48 hours if approved. There is a slightly longer wait time than last time, since the SBA changed procedural guidance which means it now takes several hours for applications to get approved, instead of minutes.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2862 on: January 15, 2021, 11:24:50 AM »
You received an EIDL between Jan and April 3 2020?
NO, did not.

Offline 123-Rosh

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2863 on: January 15, 2021, 11:25:08 AM »
I have a bank that opened today at 9am. They push through applications in the order received, and expect to have funds deposited within 24-48 hours if approved. There is a slightly longer wait time than last time, since the SBA changed procedural guidance which means it now takes several hours for applications to get approved, instead of minutes.

Is that the one on your website?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2864 on: January 15, 2021, 11:32:43 AM »
I'd like to take a moment to point out that Dan and JJ have requested that affiliate links not be posted/referred to.

I'd like to honor that so please help me by not going in that direction. If you have any questions in that regard you can reach out to me privately, but kindly not in-thread.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2865 on: January 15, 2021, 11:34:33 AM »
if the 24 week period ends on Nov 27 Paycheck is dated Nov 30, can this be included in payroll for forgiveness?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2866 on: January 15, 2021, 11:34:41 AM »
I have a bank that opened today at 9am. They push through applications in the order received, and expect to have funds deposited within 24-48 hours if approved. There is a slightly longer wait time than last time, since the SBA changed procedural guidance which means it now takes several hours for applications to get approved, instead of minutes.

This is on the SBA side of things? If yes, wouldn't this extra manual intervention on scale mean an increase of days/weeks (once they're saturated)?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2867 on: January 15, 2021, 11:44:08 AM »
if the 24 week period ends on Nov 27 Paycheck is dated Nov 30, can this be included in payroll for forgiveness?
Partially- it must be either paid or accrued in the covered period.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2868 on: January 15, 2021, 11:44:29 AM »
This is on the SBA side of things? If yes, wouldn't this extra manual intervention on scale mean an increase of days/weeks (once they're saturated)?

Yep, SBA system changes.
It's not manual, but it is a longer process.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2869 on: January 15, 2021, 11:57:40 AM »
Yep, SBA system changes.
It's not manual, but it is a longer process.

Any idea what they’re doing differently/additionally?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2870 on: January 15, 2021, 02:51:58 PM »
...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
Which means that you can apply for a second draw and receive SBA number before using up the funds from first round, just wait to sign the loan documents to receive disbursement till 8 weeks passes.

Or just give the 1st one as payroll for your spouse for office work done and immediately apply for a second draw, if the other option is losing out the second draw

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2871 on: January 15, 2021, 03:03:38 PM »
...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
It doesn't say that you need to use it for authorized FORGIVENESS purposes, it has to be used for ELIGIBLE expenses, since payroll is considered eligible expenses you can use it up in 1 week also. and after 8 weeks to apply for forgiveness.

https://www.sba.gov/sites/default/files/2021-01/PPP%20Second%20Draw%20Borrower%20Application%20Form%20%281.8.2021%29-508.pdf

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2872 on: January 16, 2021, 08:22:00 PM »
Any idea what they’re doing differently/additionally?

I couldn't find the original statement on this, so I'm wondering if they were referring to the rollout of the program and not the actual application approval.
They were highly criticized for rolling out the program hastily last time and then having to issue 27 IFRs to clarify things...

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2873 on: January 16, 2021, 09:13:06 PM »
I couldn't find the original statement on this, so I'm wondering if they were referring to the rollout of the program and not the actual application approval.
They were highly criticized for rolling out the program hastily last time and then having to issue 27 IFRs to clarify things...

Understood, thanks!

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2874 on: January 17, 2021, 02:10:13 AM »
Which means that you can apply for a second draw and receive SBA number before using up the funds from first round, just wait to sign the loan documents to receive disbursement till 8 weeks passes.

Or just give the 1st one as payroll for your spouse for office work done and immediately apply for a second draw, if the other option is losing out the second draw
Further, an eligible borrower must have already received a first draw PPP loan and must have used the full amount of its PPP loan for permitted purposes prior to the disbursement of the Second Draw PPP loan. The EAA required that the loan had been or “will be used” without specifying the time period for such use. The Second Draw PPP IFR interprets that to mean that borrowers can apply for a Second Draw PPP loan before they have fully used the PPP loan, but cannot receive the disbursement of the Second Draw PPP loan until they have fully used the original PPP proceeds.

https://www.klgates.com/SBA-Publishes-PPP-30-Regulations-and-PPP-Second-Draw-Loan-Regulations-1-11-2021

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2875 on: January 17, 2021, 02:01:52 PM »
how do i calculate the 2.5? Is it different then the first one or same? My payroll has grown since 2019.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2876 on: January 17, 2021, 02:38:51 PM »
why is kabbage (kservices) asking about eidl advance (in forgiveness app), isn't this part forgiven too? Maybe they didn't update their system yet?

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2877 on: January 17, 2021, 02:40:57 PM »
how do i calculate the 2.5? Is it different then the first one or same? My payroll has grown since 2019.

You can use 2019 or 2020 payroll.
S and C Corps can use 12 months prior to their application as well.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2878 on: January 17, 2021, 02:41:12 PM »
why is kabbage (kservices) asking about eidl advance (in forgiveness app), isn't this part forgiven too? Maybe they didn't update their system yet?

Most banks have not yet updated.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2879 on: January 17, 2021, 03:51:53 PM »
'Destination Marketing Organization'
does this include travel agents?