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

[cgr]

But you will need to provide a 2019 return, correct?

Yep. That's needed for all EIDL programs.

[cgr]

Do the 8 weeks of reduced income need to be consecutive or would 2 non consecutive months of reduced income qualify?
Also, if a business opened in November 2019 - can it still qualify based on income from Nov/Dec 2019 and the first 2 months of 2020?

Has to be consecutive 2 months.
If the business opened late 2019 they'll compare 2 months after March 2020 to 2 months before March 2020.

[TBD]

Yep. That's needed for all EIDL programs.

Basically, If you have a Schedule C in 2019 of $1,200 in which you earned $100 a month and you claim that in June-July 2020 you earned only $49 a month (all other months you earned $500 a month) you can get now $15,000 from the Uncle Sam! If you are in Low Income Community

[bubkiz]

Has to be consecutive 2 months.
If the business opened late 2019 they'll compare 2 months after March 2020 to 2 months before March 2020.

Do they compare the same months: i.e.: Jan- Feb 2020 compared to Jan-Feb 2021 or if for example in Jan-Feb 2020 there was $5000 in income and April-May 2021 there was $2000 - would this qualify?

[Buruch]

Yep. That's needed for all EIDL programs.

If 2019 is not yet filed, a prepared schedule C won't suffice like with PPP?
Also, how far along in the application do I need to go to trigger an invite? I submitted the app, and they responded with an amount I qualify for, but it's still asking for verification of some more info before it's available to sign. Is all that necessary, or just submitting the application is enough to trigger the invite?

[cgr]

Do they compare the same months: i.e.: Jan- Feb 2020 compared to Jan-Feb 2021 or if for example in Jan-Feb 2020 there was $5000 in income and April-May 2021 there was $2000 - would this qualify?

It's not clear from the rules, but based on approvals it looks like the months don't need to the same.

[cgr]

If 2019 is not yet filed, a prepared schedule C won't suffice like with PPP?
Also, how far along in the application do I need to go to trigger an invite? I submitted the app, and they responded with an amount I qualify for, but it's still asking for verification of some more info before it's available to sign. Is all that necessary, or just submitting the application is enough to trigger the invite?

No, the return needs to be processed with the IRS. The SBA will request your tax transcripts.

Applying should be enough- the rest you can leave.

[AsherO]

There is also a button all the way at the bottom of the document area that says "submit". It seems like it's not done until you click.

Now Biz2Credit sent me an email with a scary subject line:

Subject: at risk of not being forgiven

Could you provide me with a financial statement showing that there was a 25 percent decrease in sales from 2019 to 2020? They need to be matching quarters and the statement needs to be ink signed and dated. This application can’t qualify without that.

We also need bank statements for covered periods. Thank you.

@YitzyS @cgr

[cgr]

Now Biz2Credit sent me an email with a scary subject line:

@YitzyS @cgr

Oops. Forgot you were seeking forgiveness for second draw.
They'll need the revenue reduction proof for second draw.

[AsherO]

Oops. Forgot you were seeking forgiveness for second draw.
They'll need the revenue reduction proof for second draw.

Wasn’t aware of this. I’ll put it together for them, hopefully they won’t be sticklers, seeing as the numbers do add up.

[YitzyS]

Now Biz2Credit sent me an email with a scary subject line:

@YitzyS @cgr

Oops. Forgot you were seeking forgiveness for second draw.
They'll need the revenue reduction proof for second draw.

I attached an excel spreadsheet showing the reduction, but I did not ink sign it. My forgiveness application is showing as submitted now. Is there anything I should do now to fix that?

[cgr]

I attached an excel spreadsheet showing the reduction, but I did not ink sign it. My forgiveness application is showing as submitted now. Is there anything I should do now to fix that?

They either didn't realize or your loan officer didn't care.
Probably best to upload now to prevent issues down the line.

[YitzyS]

They either didn't realize or your loan officer didn't care.
Probably best to upload now to prevent issues down the line.

The website isn't giving me the option. Should I email my funding specialist?

[bubkiz]

Has to be consecutive 2 months.
If the business opened late 2019 they'll compare 2 months after March 2020 to 2 months before March 2020.

Ty.
One more Q: Does each month need to have  the 30% reduction or do they count the 2 months together?

[hvaces42]

I only got a partial approval from Capital One for forgiveness of round one PPP. I think it is because I got a loan that was twice what I should have gotten. Got $7200 in the first round and ~$3300 in the second round which is closer to the partially approved forgiveness amount. It was free money while it lasted. Not gonna cry over it.

[AsherO]

I only got a partial approval from Capital One for forgiveness of round one PPP. I think it is because I got a loan that was twice what I should have gotten. Got $7200 in the first round and ~$3300 in the second round which is closer to the partially approved forgiveness amount. It was free money while it lasted. Not gonna cry over it.

You did the simplified  single-sheet forgiveness application? The only relevent question they ask is how much was spent on payroll, what % did you say?

[cgr]

The website isn't giving me the option. Should I email my funding specialist?

Sure. I might also be able to help from the backend- you can email me.

[cgr]

Ty.
One more Q: Does each month need to have  the 30% reduction or do they count the 2 months together?

Anecdotally 2 months as a whole, not per month.

[YitzyS]

Sure. I might also be able to help from the backend- you can email me.

Thanks. I'll CC you on my email to them.

[hvaces42]

You did the simplified  single-sheet forgiveness application? The only relevent question they ask is how much was spent on payroll, what % did you say?

100% I knew rom the first minute that the loan amount was too high. The revenues didnt justify it. Its ok.