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stout
Arizona Fan
Back in God's Country
Member since Sep 2006
142812 posts
 Online 

re: PPP Loan Forgiveness App is finally out
quote:

tgrbaitn08


Has lost his right to ever call out "spilonares" again.


Sheepdog1833
LSU Fan
Member since Feb 2019
388 posts
 Online 

re: PPP Loan Forgiveness App is finally out
I may be making a broad interpretation of payroll and utility expenses forgivable.
I have to carry a lot of commercial insurance as I own a heavy construction company. Is liability insurance covered under payroll expenses? Also, under utilities, transportation is mentioned, can I apply my vehicles’ commercial premiums against the forgivable portion? I’m not trying to get a handout but also don’t want to leave money on the table. Those costS accrue whether myself and my employees get out of bed or not.
Lastly, I’m assuming workman’s comp insurance is covered in forgiveness as it is a direct payroll cost.

FYI, furloughed employees have a reduced WC rate. Don’t pay your normal higher rates.

Good luck to all of you.
This post was edited on 5/17 at 2:43 am


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27264 posts

re: PPP Loan Forgiveness App is finally out
No. Group health insurance premiums only.


TakeThat
LSU Fan
Lost in Texas
Member since Oct 2005
18 posts

re: PPP Loan Forgiveness App is finally out
If you read the interim rules regarding the sole prop forgiveness they rounded it off to 75%. Therefore, I will be rounding it off to 75% as well for all sole props to get the full 75% forgiven. The certification is on the business owner. Rounding seems appropriate considering it’s in their guidance.


baldona
Auburn Fan
Florida
Member since Feb 2016
12232 posts
 Online 

re: PPP Loan Forgiveness App is finally out
There’s been a lot of rumors that any loan under $500,000 will not be audited. I don’t know the truth to it, but the SBA isn’t the IRS I don’t see how they can audit this many items?


Im4datigers
LSU Fan
Northern Virginia
Member since Oct 2003
3252 posts

re: PPP Loan Forgiveness App is finally out
quote:

There’s been a lot of rumors that any loan under $500,000 will not be audited. I don’t know the truth to it, but the SBA isn’t the IRS I don’t see how they can audit this many items?


If the SBA has 90 days to review and decision the forgiveness, there's only one way to do this and it's basically rubber stamp any forgiveness applications under a certain amount. There's no way they can spend the time on a $20k or under loan to a sole proprietor and keep that 90 day turnaround time.


Sheepdog1833
LSU Fan
Member since Feb 2019
388 posts
 Online 

re: PPP Loan Forgiveness App is finally out
quote:

No. Group health insurance premiums only.


This is in response to what question? All of them?

Workman’s comp, commercial insurances?
941s which I’m adding now?

These are direct payroll costs to the employer. I probably would’ve been better off furloughing my employees to have them collect unemployment.

That’s another question. How will this affect our unemployment rates since in my case my employees went on unemployment for three weeks?


Tigerpaw123
USA Fan
Louisiana
Member since Mar 2007
14350 posts

re: PPP Loan Forgiveness App is finally out
quote:

That’s another question. How will this affect our unemployment rates since in my case my employees went on unemployment for three weeks?


Not suppose to, early on they said that any UE claims during this time would not affect the employers rating?


Chad504boy
LSU Fan
Member since Feb 2005
140216 posts

re: PPP Loan Forgiveness App is finally out
Is cell phone and internet part of utilities?


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27264 posts

re: PPP Loan Forgiveness App is finally out
The only insurance that counts against forgiveness is group health insurance. Period.


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Sheepdog1833
LSU Fan
Member since Feb 2019
388 posts
 Online 

re: PPP Loan Forgiveness App is finally out
quote:

cell phone and internet part of utilities

I’m going with yes but what do I know?

quote:

(c) covered utility payments: business payments for a service for the distribution of electricity, gas, water, transportation, telephone, or internet access for which service began before February 15, 2020 (“business utility payments”).


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27264 posts

re: PPP Loan Forgiveness App is finally out
You can use an EIDL loan to pay for those costs. It's a working capital loan.


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HailToTheChiz
Auburn Fan
Back in Auburn
Member since Aug 2010
35203 posts

re: PPP Loan Forgiveness App is finally out
quote:

I'm a sole proprietor so my bank got me the largest loan available ($100k/12 months x 2.5 months) = $20,833.

But I can only pay myself $100k/52 weeks x 8 weeks = $15,385.

$15,385/20,833 = 73.85%. It sounds like the rule requires that 75% be used for payroll - but since I'm prohibited from paying myself 75% of the loan, might I have to pay back the whole thing?


Sounds like a lot of us will have a low interest loan


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27264 posts

re: PPP Loan Forgiveness App is finally out
Not if you have a health insurance policy through the company.


iron banks
LSU Fan
Destrehan
Member since Jul 2014
2542 posts

re: PPP Loan Forgiveness App is finally out
Got funded May 1. Paid my May 1st rent on April 29th. Do I get to include that or just June and early pay July for two months worth of rent.


Ford Frenzy
New Orleans Saints Fan
337 posts
Member since Aug 2010
6599 posts

re: PPP Loan Forgiveness App is finally out
quote:

You have to use 75% of the forgivable balance on payroll. In your case, it’s impossible to have the whole thing forgiven, but you can still have the vast majority forgiven and the remaining difference treated like a 1% loan


Can he add someone to his payroll (spouse?) thus allowing him to meet the 75% requirement?


NOSHAU
New Orleans Saints Fan
Member since Feb 2012
6660 posts

re: PPP Loan Forgiveness App is finally out
quote:



If the SBA has 90 days to review and decision the forgiveness, there's only one way to do this and it's basically rubber stamp any forgiveness applications under a certain amount. There's no way they can spend the time on a $20k or under loan to a sole proprietor and keep that 90 day turnaround time.

SBA has up to 10 years to audit. Forgiveness is initially determined by the lender.


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27264 posts

re: PPP Loan Forgiveness App is finally out
That is not a good idea.


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Im4datigers
LSU Fan
Northern Virginia
Member since Oct 2003
3252 posts

re: PPP Loan Forgiveness App is finally out
quote:

SBA has up to 10 years to audit. Forgiveness is initially determined by the lender.


I’m a banker. 60 days for the bank to review and submit to sba. Then sba has 90 days to approve and forgive.

No bank wants any amount of the loan to NOT be forgiven as there’s zero incentive for us to carry a balance forward. Sba has to ultimately approve the forgiveness. Otherwise it truly would be a rubber stamp for each loan.


NOSHAU
New Orleans Saints Fan
Member since Feb 2012
6660 posts

re: PPP Loan Forgiveness App is finally out
quote:

I’m a banker. 60 days for the bank to review and submit to sba. Then sba has 90 days to approve and forgive.

No bank wants any amount of the loan to NOT be forgiven as there’s zero incentive for us to carry a balance forward. Sba has to ultimately approve the forgiveness. Otherwise it truly would be a rubber stamp for each loan.

My understanding is the forgiveness determination is initially made by the lender and can be reversed by audit and SBA has 10 years to audit.
quote:


"After obtaining the required documentation, the lender must issue a decision and notify the borrower within 60 days of the receipt of an application for forgiveness by the borrower. The lender notifies the borrower regarding the amount of the loan forgiven and the applicable effective date, as well as the adjusted amount of the PPP loan (plus accrued interest), if any, that remains outstanding.

The SBA must then remit the amount forgiven plus accrued interest (accrued through the date of payment) to the lender within 90 days of the date on which the amount of forgiveness is determined."

LINK

This post was edited on 5/17 at 11:04 pm


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