Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable) (Read 545089 times)

cgr · « **Reply #3240 on:** February 21, 2021, 11:30:05 PM »

Quote from: AsherO on February 21, 2021, 05:00:43 PM

Would you say it can’t hurt to apply for EIDL? When do they pull credit?

They pull as soon as they process the application.

cgr · « **Reply #3241 on:** February 21, 2021, 11:30:59 PM »

Quote from: lakewood34 on February 21, 2021, 08:33:00 PM

what is the point of another 7.25 b for ppp
considering the current size of the program it does not seem like a lot also are they expecting the money to run out that they need to allocate more?

They're adding eligibility to include certain lobbying non-profits. I guess they will gobble it up so they lobbied for another few B's...

cgr · « **Reply #3242 on:** February 22, 2021, 08:43:37 AM »

Changes expected to be announced to the PPP Program later today.
https://thehill.com/homenews/administration/539811-biden-readies-changes-to-ppp-to-prioritize-small-minority-owned

AsherO · « **Reply #3243 on:** February 22, 2021, 08:48:05 AM »

Quote from: cgr on February 22, 2021, 08:43:37 AM

Changes expected to be announced to the PPP Program later today.
https://thehill.com/homenews/administration/539811-biden-readies-changes-to-ppp-to-prioritize-small-minority-owned

Thanks. I saw the news. What’s this business about changes to the formula for IC/SP? Can Biden do this singlehandedly without congressional sign off?

cgr · « **Reply #3244 on:** February 22, 2021, 09:14:45 AM »

Quote from: AsherO on February 22, 2021, 08:48:05 AM

Thanks. I saw the news. What’s this business about changes to the formula for IC/SP? Can Biden do this singlehandedly without congressional sign off?

It's expected to be changed to follow the farmers and ranchers rule, which is based on gross income and not net.

d. How do farmers and ranchers calculate the maximum PPP loan amount?
How you calculate your maximum loan amount depends upon whether you employ other individuals. If you have no employees, the following methodology should be used to calculate your maximum loan amount:
i. Step 1: Find your 2019 or 2020 IRS Form 1040 Schedule F line 9 gross income (if you are using 2020 and you have not yet filed a 2020 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.

shapsam · « **Reply #3245 on:** February 22, 2021, 09:43:25 AM »

Quote from: cgr on February 22, 2021, 09:14:45 AM

It's expected to be changed to follow the farmers and ranchers rule, which is based on gross income and not net.

d. How do farmers and ranchers calculate the maximum PPP loan amount?
How you calculate your maximum loan amount depends upon whether you employ other individuals. If you have no employees, the following methodology should be used to calculate your maximum loan amount:
i. Step 1: Find your 2019 or 2020 IRS Form 1040 Schedule F line 9 gross income (if you are using 2020 and you have not yet filed a 2020 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.

I didn't read the article. Would every business be eligible to calculate the loan amount this way?

cgr · « **Reply #3246 on:** February 22, 2021, 11:05:00 AM »

Quote from: shapsam on February 22, 2021, 09:43:25 AM

I didn't read the article. Would every business be eligible to calculate the loan amount this way?

No. Only sole props/independent contractors/self-employed.

AsherO · « **Reply #3247 on:** February 22, 2021, 11:07:59 AM »

Quote from: cgr on February 22, 2021, 09:14:45 AM

It's expected to be changed to follow the farmers and ranchers rule, which is based on gross income and not net.

d. How do farmers and ranchers calculate the maximum PPP loan amount?
How you calculate your maximum loan amount depends upon whether you employ other individuals. If you have no employees, the following methodology should be used to calculate your maximum loan amount:
i. Step 1: Find your 2019 or 2020 IRS Form 1040 Schedule F line 9 gross income (if you are using 2020 and you have not yet filed a 2020 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.

Thanks! No extra money for me, hope others here can benefit.

I guess people who already got their PPP would have to jump through hoops to get their lender to adjust their PPP amount?

cgr · « **Reply #3248 on:** February 22, 2021, 11:12:20 AM »

Quote from: AsherO on February 22, 2021, 11:07:59 AM

Thanks! No extra money for me, hope others here can benefit.

I guess people who already got their PPP would have to jump through hoops to get their lender to adjust their PPP amount?

It probably won't have much impact on those with a 1099, as they often have line 1 and line 31 the same, but for real sole props it could make a huge difference (those with losses might qualify as well).

It might take a few weeks for banks to come up with a process on how to handle this.

mord1 · « **Reply #3249 on:** February 22, 2021, 11:24:54 AM »

Quote from: cgr on February 22, 2021, 11:12:20 AM

It probably won't have much impact on those with a 1099, as they often have line 1 and line 31 the same, but for real sole props it could make a huge difference (those with losses might qualify as well).

It might take a few weeks for banks to come up with a process on how to handle this.

this would be huge for me- I just got approved with crossriver (hope I could amend) but I have a bunch of expenses/ depreciation- so my line 31 is way lower than my gross income

YitzyS · « **Reply #3250 on:** February 22, 2021, 11:45:41 AM »

I'm not sure I'm following.

According to this, sole props count their gross income on Schedule C, as apposed to net income?

cgr · « **Reply #3251 on:** February 22, 2021, 12:05:19 PM »

Quote from: YitzyS on February 22, 2021, 11:45:41 AM

I'm not sure I'm following.

According to this, sole props count their gross income on Schedule C, as apposed to net income?

Potentially.

Traveler718 · « **Reply #3252 on:** February 22, 2021, 12:38:24 PM »

When would this sole prop change go into effect? And if someone already received 1st draw (even if just now), is there any way to get the additional funds, or is it too late (other than potentially for 2nd draw)?

TBD · « **Reply #3253 on:** February 22, 2021, 02:29:18 PM »

https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/22/fact-sheet-biden-harris-administration-increases-lending-to-small-businesses-in-need-announces-changes-to-ppp-to-further-promote-equitable-access-to-relief/

TBD · « **Reply #3254 on:** February 22, 2021, 02:31:27 PM »

https://www.sba.gov/sites/default/files/2021-02/PPP_Report_Public_210221-508.pdf

lakewood34 · « **Reply #3255 on:** February 22, 2021, 02:37:05 PM »

Quote from: cgr on February 22, 2021, 11:05:00 AM

No. Only sole props/independent contractors/self-employed.

what about a partnership with no employees

shapsam · « **Reply #3256 on:** February 22, 2021, 08:10:55 PM »

Quote from: cgr on February 22, 2021, 11:05:00 AM

No. Only sole props/independent contractors/self-employed.

This is for round 1 and round 2?

4yourinfo · « **Reply #3257 on:** February 22, 2021, 10:46:37 PM »

Quote from: AsherO on February 22, 2021, 11:07:59 AM

Thanks! No extra money for me, hope others here can benefit.

I guess people who already got their PPP would have to jump through hoops to get their lender to adjust their PPP amount?

Wow!! so I lost out on about 10k dollars..oh well

shapsam · « **Reply #3258 on:** February 23, 2021, 07:34:24 AM »

Quote from: shapsam on February 22, 2021, 08:10:55 PM

This is for round 1 and round 2?

And would it go according to either 2019 or 2020 gross income or would it only work with 2020 gross income?

jaywhy · « **Reply #3259 on:** February 23, 2021, 10:33:32 AM »

Can someone recommend a direct lender other than Cross River/ B2C and big banks?