SBA PPP and EIDL Small Business Loans (some money is forgivable)

[cgr]

I would like to apply for the second round of ppp.

I am self employed (1099), but I had an employee for the first quarter of 2020 (and for 6 months in 2019) .

Which calculation do I use for loan eligibility amount? Employee payroll x2.5, or my gross income minus employee payroll ?

Any help is appreciated. Thank you

Gross income minus line 14, 19, and 26 for owner compensation, plus employee payroll based of the 940.
Banks have not yet rolled out this application.

[cgr]

I am applying for round 2 with KServicing(Kabbage) as a sole proprietor based on gross income. Their system doesn't give the option to calculate based on gross income, and just spits out a loan amount the same as the first round - based on net income. Anyone find a way around it?

Banks have not yet rolled out this application.
Biz2Credit is expected to release it today.

[ExGingi]

Banks have not yet rolled out this application.
Biz2Credit is expected to release it today.

And can one choose to use the higher of 2019 or 2020 gross revenue?

[cgr]

And can one choose to use the higher of 2019 or 2020 gross revenue?

Yep- up to $100k max.

[YitzyS]

Banks have not yet rolled out this application.
Biz2Credit is expected to release it today.

Has there been any talk about possibly opening this up for loans already disbursed?

[cgr]

Has there been any talk about possibly opening this up for loans already disbursed?

No. Not on the table right now.

[jackofall]

Anybody received the targeted advance yet?
Thanks!

[Fish Tank]

Gross income minus line 14, 19, and 26 for owner compensation, plus employee payroll based of the 940.
Banks have not yet rolled out this application.

Thank you . When you say "plus", you mean I need to deduct it as well?

[cgr]

Thank you . When you say "plus", you mean I need to deduct it as well?

Deduct salaries paid (line 14, 19, and 26) from line 7, so that you get your portion only, without any employee salaries.
Then, calculate employee wages off the 940.
I've seen the application- they guide you through the process so it's quite simple.

[Fish Tank]

Deduct salaries paid (line 14, 19, and 26) from line 7, so that you get your portion only, without any employee salaries.
Then, calculate employee wages off the 940.
I've seen the application- they guide you through the process so it's quite simple.

Thank you.

Shouldn't 940 = line 26?

[helpusout]

hi, looking to apply for round 2 of PPP, we did receive round one. We have lots of revenue but not lots of profit. so its hard for me to prove the reduction of income. how would I go about applying? Who is my best bet? Its possible I can show a reduction, depends on what they count as expenses.

5 employees.

Thank you!

[cgr]

hi, looking to apply for round 2 of PPP, we did receive round one. We have lots of revenue but not lots of profit. so its hard for me to prove the reduction of income. how would I go about applying? Who is my best bet? Its possible I can show a reduction, depends on what they count as expenses.

5 employees.

Thank you!

No expenses are counted for the revenue reduction, just sales.
You can email me at chaiplus1@gmail.com with any questions.

[David101]

Is the rule still you need to wait 8 weeks before applying for rd#2? Any updates about extending the deadline past 3/31?

[cgr]

Is the rule still you need to wait 8 weeks before applying for rd#2? Any updates about extending the deadline past 3/31?

The SBA hasn't allowed banks to submit Second Draw applications for First Draw received in 2021. Update pending.
No update on extending the deadline yet.

[minkr]

The SBA hasn't allowed banks to submit Second Draw applications for First Draw received in 2021. Update pending.
No update on extending the deadline yet.

Any idea when the update will be released, allowing second draw applications to be submitted (first draw received in 2021)
Is there any talk about extending past March 31st?

[ShimshonK]

Any idea when the update will be released, allowing second draw applications to be submitted (first draw received in 2021)
Is there any talk about extending past March 31st?

I have heard that some banks (Chase, BOA) are already closing applications now, well before 3/31.

[ShimshonK]

There's some momentum on extending the PPP by 60 days.
https://twitter.com/Zachary/status/1369822710495346693

[AsherO]

There's some momentum on extending the PPP by 60 days.
https://twitter.com/Zachary/status/1369822710495346693

If there’s money left, why not? This would allow lots of 2021 1st draw PPP borrowers to get a 2nd draw in as well.

[ShimshonK]

Update from @Dan :

Schedule C filers can now opt to use their total 2019 or 2020 gross income from line 7 of their Schedule C (rather than line 31 net profit) to receive a higher PPP loan for both first and second draw funding! This only applies for new loans going forward. If both your gross income and net profit are $0 or less, you are not eligible for a PPP loan. More details can be found in the updated SBA interim final rule.

The PPP program will end on 3/31 and Cross River will close their application portal on 3/20!

https://www.dansdeals.com/more/coronavirus/pre-applications-ppp-funding-round-2-now-accepted/

[cgr]

SBA has started approving EIDL Targeted applications- you can check your SBA portal- status will change to "Approved".
Now let's see who gets funded first...