Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 167429 times)

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2910 on: January 18, 2021, 11:24:11 PM »
You can't use PP1 funds in excess of 1/52 for owner compensation per week, so I disagree.
The quickest timeline I see is 6.75 weeks, as mentioned in my previous post.
@cgr you didn't address if you can apply before just need to wait for proceeds disbursement?

Offline oldguy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2911 on: January 18, 2021, 11:24:36 PM »
I think the question was asked the 1st time around, just I can't seem to find it.
For an individual applying as an independent contractor with their schedule C can they still be on Unemployment? or only on partial unemployment?
« Last Edit: January 19, 2021, 12:21:43 AM by oldguy »

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2912 on: January 18, 2021, 11:31:47 PM »
You can't use PP1 funds in excess of 1/52 for owner compensation per week, so I disagree.
The quickest timeline I see is 6.75 weeks, as mentioned in my previous post.
https://www.sba.gov/sites/default/files/2021-01/PPP%20--%20IFR%20--%20Paycheck%20Protection%20Program%20as%20Amended%20by%20Economic%20Aid%20Act%20%281.6.2021%29-508.pdf
Page 52 doesn't mention any limit on the time-frame for using (not forgivness)payroll expenses for self employed

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2913 on: January 19, 2021, 12:01:02 AM »
@cgr you didn't address if you can apply before just need to wait for proceeds disbursement?

My understanding is that you need to have used the funds correctly (ie be eligible for forgiveness regardless if you can already apply or not), to qualify for Second Draw.

https://www.sba.gov/sites/default/files/2021-01/PPP%20--%20IFR%20--%20Paycheck%20Protection%20Program%20as%20Amended%20by%20Economic%20Aid%20Act%20%281.6.2021%29-508.pdf
Page 52 doesn't mention any limit on the time-frame for using (not forgivness)payroll expenses for self employed

https://www.masslive.com/business/2021/01/going-for-a-new-ppp-loan-sba-revises-rules-on-employee-and-owner-salaries-bonuses.html

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2914 on: January 19, 2021, 12:02:22 AM »
I think the question was asked the 1st time around, just I can't seam to find it.
For an individual applying as an independent contractor with their schedule C can they still be on Unemployment? or only on partial unemployment?

PPP and UI/PUA interactions depend on the state.
In NY, earning under $504 is fine (assuming you're not working).
In NJ, you need to earn less than your PWBR, and if it's more than 20% of your WBR, every dollar you earn gets deducted from your UI/PUA payment.

Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2915 on: January 19, 2021, 12:08:47 AM »
PPP and UI/PUA interactions depend on the state.
In NY, earning under $504 is fine (assuming you're not working).
In NJ, you need to earn less than your PWBR, and if it's more than 20% of your WBR, every dollar you earn gets deducted from your UI/PUA payment.
So, in NJ, it seems to be ideal to claim the 20% for all 24 weeks, and then the difference as necessary?

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2916 on: January 19, 2021, 12:22:29 AM »
My understanding is that you need to have used the funds correctly (ie be eligible for forgiveness regardless if you can already apply or not), to qualify for Second Draw.

Used for sure you don't need before applying as the application states clearly that it only needs to be used before disbursement

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


Offline oldguy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2917 on: January 19, 2021, 12:23:59 AM »
PPP and UI/PUA interactions depend on the state.
In NY, earning under $504 is fine (assuming you're not working).
In NJ, you need to earn less than your PWBR, and if it's more than 20% of your WBR, every dollar you earn gets deducted from your UI/PUA payment.
Thank you!

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2918 on: January 19, 2021, 12:37:58 AM »
Used for sure you don't need before applying as the application states clearly that it only needs to be used before disbursement

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

That I agree. You can apply in advance as long as you meet the rules the day the funds hit your account.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2919 on: January 19, 2021, 12:40:59 AM »
https://www.masslive.com/business/2021/01/going-for-a-new-ppp-loan-sba-revises-rules-on-employee-and-owner-salaries-bonuses.html
I think this article is only about forgiveness.

I didn't find anywhere that you need to be eligible for forgiveness before applying for PPP2, In reply#2874 there is a legal opinion to the contrary that there is NO timeframe on applying for PPP2 if funds are used before disbursement. would appreciate if anyone can post here legal opinions to the contrary

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2920 on: January 19, 2021, 12:43:18 AM »
That I agree. You can apply in advance as long as you meet the rules the day the funds hit your account.
http://chaiplus1.com/news/ppp-guide-for-self-employed-1099/
You can update the article


Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2921 on: January 19, 2021, 02:05:33 AM »
That I agree. You can apply in advance as long as you meet the rules the day the funds hit your account.
That's a game changer for those trying to get both 1st and 2nd draw now, no?
They can apply for the second draw right away (after applying? Being approved?) and receive approval on the second draw before funds run out... and just wait the required time to sign docs and get the disbursement. Is there some sort of timeline given to sign docs and get disbursement?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2922 on: January 19, 2021, 09:54:37 AM »
http://chaiplus1.com/news/ppp-guide-for-self-employed-1099/
You can update the article


Thanks :) I changed on the others but still debating about changing here because loads of 1099ers have no expenses reported, and I don't want them jumping the gun... need to give it some thought.

Online AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2923 on: January 19, 2021, 09:57:53 AM »
Looking forward to reports of 2nd draw SBA approvals via various lenders :)

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #2924 on: January 19, 2021, 10:04:44 AM »
Looking forward to reports of 2nd draw SBA approvals via various lenders :)

My bank- already got a few approvals with 90% of the remaining signed applications currently under review by the SBA. Should have approvals for those soon iyh.