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BottomlandBrew
LSU Fan
Member since Aug 2010
21779 posts

re: Small Business Resource Thread COVID-19
quote:

Does this mean that those who jumped the gun and applied for the economic disaster loan are now disqualified from the PPP loan?


No. These disaster loans may be refinanced into PPP loans.

If your business has received a disaster loan from January 31, 2020 until June 30, 2020, you are eligible for a PPP loan so long as that disaster loan is for a purpose other than paying payroll costs, mortgages, rents and utilities.

I'm hoping to know more this afternoon. We have a call with our bank today to go over options. We're going to need something to make it through this. On the surface, the PPP sounds too good to be true. I hope there isn't a gotcha hidden in there somewhere.


SLafourche07
New Orleans Pelicans Fan
Member since Feb 2008
7223 posts

re: Small Business Resource Thread COVID-19
FYI the link to apply for the "up to $10,000" grant is up:

SBA.gov


igoringa
LSU Fan
Tejas
Member since Jun 2007
11242 posts

re: Small Business Resource Thread COVID-19
So PPP is through the bank directly but not set up as yet?



GravelLotinCanada
Anywhere, Anytime
Member since Dec 2019
77 posts

re: Small Business Resource Thread COVID-19
Yeah I saw that I had to reapply but it was a much easier application process this time around. And there’s a button to hit to apply for grant.


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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27753 posts
 Online 

re: Small Business Resource Thread COVID-19
Yes, it's through your bank. My understanding was that the grant comes from the bank at time of application. I'm unsure on the grant now.


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VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27753 posts
 Online 

re: Small Business Resource Thread COVID-19
Are you sure about that link? It's the page to apply for an EIDL loan which is not the same as the PPP loan which is applied for through your bank.


JoeBobRuby
LSU Fan
Member since Sep 2005
5806 posts

re: Small Business Resource Thread COVID-19
CPA is telling me they've learned this AM there will also be tax credits in lieu of PPP loan. No one has the particulars yet to be able to calculate relative to the PPP loans.

Pass the law, print the money, figure it out as we go


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10
SLafourche07
New Orleans Pelicans Fan
Member since Feb 2008
7223 posts

re: Small Business Resource Thread COVID-19
quote:


Are you sure about that link? It's the page to apply for an EIDL loan which is not the same as the PPP loan which is applied for through your bank.






I filled it out this morning. There's a section at the end to be considered for the grant and you enter your account information where you want it to be deposited.



VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27753 posts
 Online 

re: Small Business Resource Thread COVID-19
PNC Bank put this up this morning.

LINK To PNC Page on PPP Loans


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27753 posts
 Online 

re: Small Business Resource Thread COVID-19
Here's a more comprehensive overview of the Care Act from PNC Bank.

Cares Act Overview


SippyCup
Bidens Basement
Member since Sep 2008
4154 posts
 Online 

re: Small Business Resource Thread COVID-19
The 10,000 grant will reduce the amount of PPP loan that is forgiven.


SLafourche07
New Orleans Pelicans Fan
Member since Feb 2008
7223 posts

re: Small Business Resource Thread COVID-19
quote:

The 10,000 grant will reduce the amount of PPP loan that is forgiven.





I understand, but I had no employees in 2019 and my 2.5x average monthly payroll to figure out my max loan is less than the $10,000 grant.


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Doctor Strangelove
Mississippi St. Fan
Member since Feb 2018
1648 posts

re: Small Business Resource Thread COVID-19
Info for the 7(a) loan from my CPA

quote:

The loan amount calculation will be as follows:

Payrolls costs including salary, wages, commission, or similar compensation; payment of cash tip or equivalent; payment for vacation, parental, family, medical, or sick leave; allowance for dismissal or separation; payment for group health care benefits, including insurance premiums; payment of any retirement benefit; and payment of State or Local tax accessed on the compensation of employees. Employees whose salaries are greater than $100k will be limited to $100k for this calculation. Ex: Employee salary is $156k. The Salary cap is $100k so they would use $100k and the remaining $56k would be excluded.

Each type of business will provide and certify the payroll costs listed above for us to determine an average monthly costs which will be multiplied by 2.5x to determine the loan amount. The maximum loan amount will be the lesser of the calculation or $10 million.

There is a part of this Act that has “Loan Forgiveness”. The loan is NOT a grant but it does have a portion that can be forgiven. The borrower has to provide evidence that they paid eligible costs over an 8 week period following origination of which we will file a report to request SBA to pay us this amount which will be applied to their loan balance. “Eligible costs” include payroll costs, rent, mortgage interest payment, utilities (electricity, gas, water, transportation, telephone or internet access). They will have to provide evidence they paid this – it is not automatically granted.


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27753 posts
 Online 

re: Small Business Resource Thread COVID-19
Thanks. Health insurance premiums helps me a lot. I pay 100% of my emloyees health insurance premium.


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20
Doctor Strangelove
Mississippi St. Fan
Member since Feb 2018
1648 posts

re: Small Business Resource Thread COVID-19
I applied for 2 EIDL loans for 2 companies this morning directly through SBA's website and they are pretty straightforward. My CPA says to apply for each seperate company you own.

EIDL Application

Has anyone tried filling out FORM 1920 of the 7(a) loan application? It looks like Section E as well as other sections are checking your net worth, lines of credit as a means test, which is the right way to do it in my opinion. It's not clear though.


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27753 posts
 Online 

re: Small Business Resource Thread COVID-19
I won't be doing EIDL. Just the PPP loan. My wife will be doing one for her bookkeeping firm as well.

I do know that EIDL loans do look at net worth however for loans below $200k the following applies according to PNC.

quote:

Guarantees are required for loans >$200k and collateral is required if loan is >$25k
? Real estate is preferred, but a loan will not be declined for lack of collateral. Any
available collateral will be taken. SBA lien is subordinate to any existing liens


ETA: It appears that one could do the PPP loan and do a supplemental EIDL loan for under $25k with no collateral requirement.
This post was edited on 3/30 at 2:42 pm


Golfer
LSU Fan
Member since Nov 2005
75052 posts

re: Small Business Resource Thread COVID-19
We did the EDIL this afternoon and will be doing the PPP with a local lender later this week.

The EDIL is no fee...so worst case if we don't need it, we can repay it back right away. It also provides the $10k advance which will be helpful in the short-term since those advances are supposed to be processed immediately.

Will keep this thread apprised of the process.
This post was edited on 3/30 at 2:56 pm


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27753 posts
 Online 

re: Small Business Resource Thread COVID-19
Yessir. I'm doing the same. I'm going to apply for a small EIDL loan to supplement the PPP loan if needed.


LigerFan
LSU Fan
Member since Jan 2014
2485 posts
 Online 

re: Small Business Resource Thread COVID-19
I am reading that FTE employees is based on numbers from 2/15/19 - 6/30/19. Anyone have any guidance on how they will calculate FTEs in this range? We went from 70-75 employees in this time frame, then back down to 65 before the COVID-19 started. These fluctuations make it difficult to try and plan without any guidance issued on some of these smaller details.


VABuckeye
Ohio State Fan
Oak Hill, VA
Member since Dec 2007
27753 posts
 Online 

re: Small Business Resource Thread COVID-19
The document my bank sent me states that it's a 12 month average for the past 12 months.


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