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re: Give me the cons of getting a coronavirus SBA loan
Posted on 4/1/20 at 2:24 pm to ell_13
Posted on 4/1/20 at 2:24 pm to ell_13
quote:
You will have to pay most of it back. The payroll is the only forgiveness part and you still have to qualify.
The intention of the program is that the vast majority (at least 75%) goes to payroll, and the rest goes to only a very few small categories (mortgage interest, utilities, rent).
1
Posted on 4/1/20 at 2:24 pm to ell_13
Maybe I should have clarified in the OP. This is a multimember LLC and it's a 50/50 split between me and business partner. We don't have any employees so PPP wouldn't be beneficial to our company but still appreciate all the advice.
Would I have to report where/how this money is deployed inside the company?
Would I have to report where/how this money is deployed inside the company?
Posted on 4/1/20 at 2:25 pm to jlu03
We didn’t in Katrina, didn’t really need it at the time, but I always regretted it
Posted on 4/1/20 at 2:26 pm to LSUFanHouston
quote:
The intention of the program is that the vast majority (at least 75%) goes to payroll, and the rest goes to only a very few small categories (mortgage interest, utilities, rent).
Two different loans..one is the PPP and the other is the EIDL
One is through a bank via SBA and the other is directly though SBA
Posted on 4/1/20 at 2:26 pm to jlu03
Yeah contact your local bank. Mine is doing mandatory training over the next few days for several including ones not even in lending. I would imagine all competent ones are doing the same. It's times like these when you win or lose customers in the finance world. No in-between right now.
Posted on 4/1/20 at 2:52 pm to yatesdog38
The EIDL is through the SBA directly. You can request 10k to come within three days of filing. This does not have to be paid back whether you are declined or not. That loan amount will be given to you form the SBA based on several factors like credit and ability to pay back. Payments are deferred 12 months and interest is 3.75% termed at 30 years.
The PPP is completely separate and you do that through your local banks who do SBA loans, keep in mind these won’t be available till at least Friday. It takes your monthly payroll and multiplied by 2.5. Not sure how many months they will be loaning on. If you use 75% towards payroll and 25% towards rent or utilities and document it correctly it can be forgiven.
Been going through the process of applying on these and that’s what I’ve learned
The PPP is completely separate and you do that through your local banks who do SBA loans, keep in mind these won’t be available till at least Friday. It takes your monthly payroll and multiplied by 2.5. Not sure how many months they will be loaning on. If you use 75% towards payroll and 25% towards rent or utilities and document it correctly it can be forgiven.
Been going through the process of applying on these and that’s what I’ve learned
Posted on 4/1/20 at 2:56 pm to bott18240
quote:
Payments are deferred 12 months and interest is 3.75% termed at 30 years.
Very interesting
Posted on 4/1/20 at 2:57 pm to jlu03
quote:
all the hidden BS
That’s the whole fun part of the mystery.....it’s a gamble take a risk or not.
I don’t think the gubment is just handing out free money anytime without some hidden BS that only they know.
Posted on 4/1/20 at 2:58 pm to bott18240
Now Louisiana just announced their own loan program backing local banks. This program has nothing to do with the Fed program
I have a feeling this is going to frick a lot of people
I have a feeling this is going to frick a lot of people
Posted on 4/1/20 at 3:08 pm to jlu03
Click the box for the EID-El loan
Posted on 4/1/20 at 3:29 pm to tgrbaitn08
quote:
Two different loans..one is the PPP and the other is the EIDL
Yes, I see where the OP has clarified he was looking into an EIDL. Forgive me, 99 percent of the phone calls I have taken this week have been on the PPP.
The EIDL is a "there if you need it" deal. No sense in taking it just to take it. Comes with a lot of the standard SBA nonsense.
Posted on 4/2/20 at 4:45 am to LSUFanHouston
quote:
for any business that suspends or closes operations, yet continues to pay employees
Thanks for the explanation
I wouldn’t think a lot of businesses will meet that first criteria
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