Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 535540 times)

Offline ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4240 on: August 03, 2021, 12:19:26 PM »
biz2credit just made forgiveness applications available.

For a sole proprietor with no employees, does it make a difference what period one puts on a second draw PPP forgiveness application? Can one just put 8 weeks, regardless of any other details?

BUMP @cgr do you have an answer to this?
I've been waiting over 5 years with bated breath for someone to say that!
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4241 on: August 03, 2021, 12:30:02 PM »
My Targeted Advance application was pending for months already for no given reason. Finally today I received an email with a letter notifying that the business is not eligible since it is not located in a low income community, however it is located in a low income community, and is clearly showing so on the SBA map. @cgr did you hear that happen before? Is my only option to email to reconsideration and wait again for my turn?
Yes and yes.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4242 on: August 03, 2021, 12:30:44 PM »
BUMP @cgr do you have an answer to this?
If you used 100% of the funds for owner compensation, I recommend using an 11 week covered period.

Offline ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4243 on: August 03, 2021, 01:08:47 PM »
If you used 100% of the funds for owner compensation, I recommend using an 11 week covered period.

Tyvm.
I've been waiting over 5 years with bated breath for someone to say that!
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Offline ShimshonK

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4244 on: August 04, 2021, 07:10:32 PM »
Is there an ERTC thread?
Terrible memo the IRS just announced.


Offline dovy2

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4245 on: August 04, 2021, 08:21:47 PM »
Is there an ERTC thread?
Terrible memo the IRS just announced.

With non-profits, I'd assume the owner and owner's spouse thingy won't affect, as they're not really "owner's", True?

Offline TBD

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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4247 on: August 05, 2021, 11:28:38 AM »
The SBA will now allow lenders to use a "COVID Revenue Reduction Score" for borrowers with loans of $150k or less, instead of requiring financials proving a 25% reduction.

Not sure yet if lenders must offer this option, or if it's up to them.

Offline hvaces42

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4248 on: August 05, 2021, 12:19:22 PM »
Capital One is not on the Direct Forgiveness list. They offered me a lower Forgiveness amount than the loan amount. They sent me papers that they would submit to the SBA and the SBA must acknowledge the reduced amount. Yesterday I received a bill from Capital One to start making payments on the PPP loan on August 11. !. Can they just do that without giving me a breakdown of why they reduced the forgiveness? 2. Can they start billing me without the SBA approval of the forgiveness? 3. What happens if I dont pay the payment on August 11?   @cgr can you help?
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4249 on: August 05, 2021, 12:20:40 PM »
Capital One is not on the Direct Forgiveness list. They offered me a lower Forgiveness amount than the loan amount. They sent me papers that they would submit to the SBA and the SBA must acknowledge the reduced amount. Yesterday I received a bill from Capital One to start making payments on the PPP loan on August 11. !. Can they just do that without giving me a breakdown of why they reduced the forgiveness? 2. Can they start billing me without the SBA approval of the forgiveness? 3. What happens if I dont pay the payment on August 11?   @cgr can you help?
You can appeal with the SBA directly within 30 days. If you do that let your lender know, and they'll be required to defer everything til the SBA renders a decision.

Offline hvaces42

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4250 on: August 05, 2021, 12:33:48 PM »
You can appeal with the SBA directly within 30 days. If you do that let your lender know, and they'll be required to defer everything til the SBA renders a decision.
But I need a letter from the SBA to start the appeals process...which I have not gotten. Any idea where I can get that and how to start the appeals process without the letter. That part of the website is very sparse.
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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4251 on: August 05, 2021, 01:06:07 PM »
But I need a letter from the SBA to start the appeals process...which I have not gotten. Any idea where I can get that and how to start the appeals process without the letter. That part of the website is very sparse.
Was it the lender that made the less-than-100% forgiveness determination? Or the SBA?
In either case you should be able to call your lender to get more info on this.

Offline hvaces42

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4252 on: August 05, 2021, 01:41:27 PM »
Was it the lender that made the less-than-100% forgiveness determination? Or the SBA?
In either case you should be able to call your lender to get more info on this.
Lender made decision and submitted it to SBA. This is the language of their confirmation email. I spoke with the banker in the email and she is stumped too. Says I should not have gotten a bill and not have to make any payments until SBA has sent their approval. This was submitted on June 26, 2021 so theyre within the 90 days.

"Loan ending in XXXX

Your Small Business Administration (SBA) Paycheck Protection Program (PPP) loan forgiveness application and lender-recommended forgiveness amount for XXXXXXXXXXXXXXXXX LLC have been submitted to the SBA for review.

Here’s what happens next:
The SBA will conduct an independent review of your loan forgiveness application and will make the final decision on your forgiveness amount, which can be 1) Approval in Full, 2) Approval in Part or 3) Denial. The SBA has up to 90 calendar days to complete its review.
We may need to reach out during the process if additional information or documentation is needed.
The SBA will notify Capital One of its loan forgiveness decision. We’ll send an email with the SBA’s forgiveness decision as well as any next steps.
If any portion of your loan is not forgiven by the SBA, Capital One will notify you of any unforgiven loan amount and your first scheduled payment date.
No loan payments are due at this time. You will still see your PPP loan when signing in to your account, and note that PPP loans do accrue 1% interest through the duration of the loan. If you are fully forgiven, the SBA will pay any principal and interest accrued. 
If you have any questions as your loan forgiveness application moves through the process, please reach out to your business banker or relationship manager, XXXXXXXXX, at XXXXXXXXXX@capitalone.com.

Thanks for choosing Capital One."
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Offline ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4253 on: August 05, 2021, 02:03:55 PM »
I just got an update on one of my EIDL loan modification requests:

Quote
As a result of new information the previous amount has changed. Please review and accept the new amount.

The amount is significantly lower than I previously had on the modification (19.75% above the original amount, rather than 400% of the original amount)

When I click on "Review and accept the amount" it says:

Quote
SBA has updated the loan amount based on gathered information including tax transcript information

How can I find out more about what triggered this change, and what can I do to fix it?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4254 on: August 05, 2021, 02:23:28 PM »
I just got an update on one of my EIDL loan modification requests:

The amount is significantly lower than I previously had on the modification (19.75% above the original amount, rather than 400% of the original amount)

When I click on "Review and accept the amount" it says:

How can I find out more about what triggered this change, and what can I do to fix it?
Is the new amount 2X your 2019 business return line 1?

Offline ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4255 on: August 05, 2021, 02:45:22 PM »
Is the new amount 2X your 2019 business return line 1?

No.

It’s 114.5% of line 1 of the 2019 1120S line 1.

Unless the amount they are showing is the amount of the increase.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline USam

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4256 on: August 05, 2021, 03:45:30 PM »
Unless the amount they are showing is the amount of the increase.

Amount they're showing is total amount of potential modified loan.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4257 on: August 05, 2021, 05:03:57 PM »
No.

It’s 114.5% of line 1 of the 2019 1120S line 1.

Unless the amount they are showing is the amount of the increase.
I'd suggest calling them- it should be 2X 2019 return line 1.

Offline ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4258 on: August 05, 2021, 05:06:56 PM »
I'd suggest calling them- it should be 2X 2019 return line 1.

Any specific phone number?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline flatbush guy

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4259 on: August 08, 2021, 12:50:30 PM »
I need to open a business account
Anyone who can volunteer info of the easiest BUSINESS ACCOUNTto open, with the least questions, i.d requests etc??
Thanks