The Small Business Administration: COVID-19 Relief Funding Options

[phaZed]

I also completed a preliminary application for PPP with my bank on 4/3 (a regional bank).

I applied, too... but BB&T sends an email every night telling me basically nothing..

 

[HCHTech]

...and now there are some new limitations (surprise) on the EIDL loans. $1,000 per employee maximum, so you will need a total of 10 employees to be eligible for the $10K maximum "advance".

The article also says the following, a slightly less optimistic revision of the original announcement:

"As a business owner, you don't have to pay back the advance even if you're ultimately denied for the rest of the EIDL loan. The advance can also be rolled into a PPP loan and subtracted from the amount that gets forgiven."

It seems to me that if you get money from both sources, and can spend the total amount on payroll expenses for the 8 weeks that start when the loan is funded, then both will be forgiven. Of course both will not be funded simultaneously, so I'm not sure how the time period will be calculated. Also don't forget that you must spend it only on wages, so things like FICA, or income tax withholding don't count. There is a disjoint here in that the amount you are eligible for is based on gross wages and the amount you must spend it on is net wages.

I'm already starting to worry about the charlie foxtrot that will be 2020 taxes...


Edit: Oh, and that whole "you will get the money within 3 days of applying" thing? Yeah, just kidding about that. Just pretend we didn't say that.

 

[Metanis]

I visualize a huge 3000 foot tall by 3000 foot wide funnel. At the bottom is a routine kitchen faucet. Congress and the Fed are pouring all this money in the top but the flow at the bottom is fixed by the infrastructure that is in place at the banking institutions. They can't suddenly **** new loan processors or IT systems to make this happen. We saw the same thing during the mortgage crisis 10 years ago when HUD was suddenly tasked with trying to save drowning homeowners. It was months before the systems became available!

 

[phaZed]

I visualize a huge 3000 foot tall by 3000 foot wide funnel. At the bottom is a routine kitchen faucet. Congress and the Fed are pouring all this money in the top but the flow at the bottom is fixed by the infrastructure that is in place at the banking institutions. They can't suddenly **** new loan processors or IT systems to make this happen. We saw the same thing during the mortgage crisis 10 years ago when HUD was suddenly tasked with trying to save drowning homeowners. It was months before the systems became available!

Eh, BS. Big business already got their advertised 4+Trillion (Which ends up being 6-10++ Trillion, really.) The infrastructure is already there to distribute money.. they do it every year - it's called tax refunds.

What's really going on is the country is being liquidated.

 

[YeOldeStonecat]

So...yesterday we got our notice from our bank that our PPP was being processed....that we'll receive our "closing documents" for it, which upon completion we'll receive the funding within 48 hours.

And this morning, our bank processed a deposit of $5k from "Treas"....which should be the treasury....so that's the EIDL. Which originally was supposed to be $10k forgiveable...but a few weeks ago the Feds changed that to be $1k per employee.

For the PPP, the form we had to fill out was for an "average of 2019 W2". Bummer...since in 2019 we were just 5x employees...and at the turn of the year we boosted pay for all quite a bit...and added a 6th employee if Feb.

The EIDL deposit of $5k appears to be based on last years employees also....so somehow they checked that out.

 

[brandonkick]

So...yesterday we got our notice from our bank that our PPP was being processed....that we'll receive our "closing documents" for it, which upon completion we'll receive the funding within 48 hours.

And this morning, our bank processed a deposit of $5k from "Treas"....which should be the treasury....so that's the EIDL. Which originally was supposed to be $10k forgiveable...but a few weeks ago the Feds changed that to be $1k per employee.

For the PPP, the form we had to fill out was for an "average of 2019 W2". Bummer...since in 2019 we were just 5x employees...and at the turn of the year we boosted pay for all quite a bit...and added a 6th employee if Feb.

The EIDL deposit of $5k appears to be based on last years employees also....so somehow they checked that out.

The EIDL app I filled out on the SBA.GOV website had you directly enter the number of employees you had.... maybe if you filed for it early enough, you might have got the app that took like 2 + hours to fill out and it might not have been on there?

I filed mine on 4/3 and put 0 for employees. From what I've read they are counting zero the same as one, basically constituting that some folks (like myself) were confused about if or not you are considered "an employee" if your a self employed. According to what I've since read on that... yes, you would be considered to have 1 employee if your self employed / independent contractor.

Still no $1,000 deposit for me, and not a word on any of the PPP apps I put in.

 

[G8racingfool]

Didn't receive any notifications about my EIDL status but I've got $1000 sitting in my account from the "Nte Eidg" so I'm assuming that's the advance. Now to talk to my accountant and figure out how to record this on the books...

 

[HCHTech]

Didn't receive any notifications about my EIDL status but I've got $1000 sitting in my account

Same - no notification or communication of any kind since my 4/3 EIDL application, but got $5K today. My accountant confirms my understanding that this amount will become a non-forgivable portion of the PPP loan if that comes through. I made a new income account for it in Quickbooks so I can track it easily. If I don't end up getting a PPP loan, then it is an advance on any future EIDL loan I might choose to take if offered. In the event I don't accept an EIDL loan, then it doesn't need to be repaid. BTW, I received notice that the SBA pulled my credit report this past weekend, so I guess that was part of the process.

 

[YeOldeStonecat]

PPP got deposted yesterday...so we have received both.

 

[thecomputerguy]

Just received my PPP loan today through BOFA. Still nothing from EIDL ... Stimulus $2400 is scheduled to be deposited on Wednesday per the IRS website.

 

[HCHTech]

The new FAQs issued by the SBA this past weekend point to some type of review to ascertain whether or not a company's PPP loan was "necessary". Bigger loans (>$2M) will all be reviewed, and some portion of all loans will be reviewed. This could just be sabre-rattling, but it's something to keep in mind. Documentation of reduction in revenue, etc. would be a good thing to have ready in case your loan gets chosen for review - especially if you didn't have to lay off any employees.

 

[HCHTech]

Just received my PPP loan today through BOFA

Every time i see that acronym, my brain pronounces it "Boh-fuh". Then I can't find a bank name in my memory that matches that. Finally, I remember, again, that it is "Bee-uv-ay". Oh, right - Bank of America. Every. time. Brains - how do they work?

 

[Markverhyden]

Pulling this back up rather than starting a new thread. I just received my EIDL last week. I was just wondering if anyone put their's into a separate bank account or just created an EIDL account in their book keeping system. I'm planning on the later.

 

[callthatgirl]

I got PPP 2 months ago and kept in my regular account. I think this week I have to do some form to figure out what I get to keep and what is a loan and I'll be paying that back asap. I never considered the money mine, I hope to pay off some of the bigger bills in the approved list, that will help as June sucked asss lol. I did well in April and May. I'm getting Covid hangover calls, many of my clients got dropped from their clients, so the rest of the year might not be as lovely as 1st and 2nd quarter were. I'm still up about 15% this year.

I never got the baby EIDL and I did get the big one but turned that down as I don't need a loan.

 

[HCHTech]

I got PPP 2 months ago and kept in my regular account. I think this week I have to do some form to figure out what I get to keep and what is a loan and I'll be paying that back asap.

I would absolutely talk to your accountant. There are some choices you have to make (8-week vs. 24-week covered period, for one) and one might work better than the other for you since you don't have employees. If you haven't used any of the money yet and your 8 weeks have passed, then you should definitely be on the 24-week plan... Since we operate from our home, we found that there were almost no "other" expenses (besides payroll) that we could spend the money on. A few hundred bucks on internet, but otherwise, we had to use it on payroll. Also, as an owner, you are capped at the 2019 level of compensation if it was lower than 2020. Also, you can't use it on health insurance premiums for yourself either since you are an owner. Thanks for that, congress!

 

[Markverhyden]

I never bothered with applying for PPP. It's just me, myself and I so, in my eyes, the benefit was not all there. EIDL on the other had was much broader. While I need to check I'm pretty sure I can use the funds retroactively to the date it was passed. So I should be able to cover a wide variety of expenses, like a couple of large auto repairs bills, to replenish cash. I'll just have to be very diligent about record keeping. All the year before I ran on just cash flow and CC's. Though I did get a PayPal LoC a couple of years ago which has come in handy since it's zero interest if paid within 6 months.

 

[callthatgirl]

I figured I have nothing to lose by taking the loan until Nov and seeing what I can use. Sadly, the interest is building until November so I need to decide now otherwise I'm paying back a loan I never should have taken lol!