Stimulus help for small businesses, sole proprietors, s-corp etc

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Average Investor
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Average Investor » Mon May 18, 2020 12:39 pm

ADP just posted an PPP loan forgiveness estimator tool:

https://www.adp.com/contact-us/customer ... mator.aspx
Tomorrow never knows.

go_mets
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by go_mets » Mon May 18, 2020 12:47 pm

cowdogman wrote:
Mon May 18, 2020 11:14 am
go_mets wrote:
Mon May 18, 2020 9:12 am
cowdogman wrote:
Sat May 16, 2020 3:10 pm
I'm self-employed (PLLC filing a Schedule C, with a Schedule C net profit of over $100K in 2019). I just completed a draft of the form. I made a few wrong turns in completing the form before getting back on track but the form worked for me, resulting in a forgiveness of $15,385 on a loan of $20,832. I had no Schedule C rent/mortgage/utilities expenses for the relevant period.

So that's a bit of a relief.
Are you already approved for the forgiveness? Or is filling out the form enough?

Did you also get the $1K EIDL advance?
No, not forgiven. My 8 week period ends late June.

All I was saying is that I filled out the form as if it were the end of June and the results matched my expectations.

One thing I did notice is that for Schedule C borrowers there is a (at least implied) requirement that the payroll amount is actually paid to the owner, tho no requirement that it be done in equal weekly amounts. I've been paying myself (writing a weekly check on my business account and depositing into my personal account). See forgiveness "Instructions for PPP Schedule A," Line 9

I don't have an EIDL.
Thank you.
I will re-visit your post if I get the PPP loan.


.

jjface
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by jjface » Mon May 18, 2020 2:24 pm

I am hoping that lenders simplify this for their sakes and ours eg a sch c filer with nothing but owner compensation should be a few clicks and then approved. No extra docs required.

EnjoyIt
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by EnjoyIt » Mon May 18, 2020 11:21 pm

cowdogman wrote:
Sat May 16, 2020 3:10 pm
I'm self-employed (PLLC filing a Schedule C, with a Schedule C net profit of over $100K in 2019). I just completed a draft of the form. I made a few wrong turns in completing the form before getting back on track but the form worked for me, resulting in a forgiveness of $15,385 on a loan of $20,832. I had no Schedule C rent/mortgage/utilities expenses for the relevant period.

So that's a bit of a relief.
how did a solo 401k or defined benefit plan work into it? Are you still limited my the $100k?

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cowdogman
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by cowdogman » Tue May 19, 2020 9:48 am

EnjoyIt wrote:
Mon May 18, 2020 11:21 pm
cowdogman wrote:
Sat May 16, 2020 3:10 pm
I'm self-employed (PLLC filing a Schedule C, with a Schedule C net profit of over $100K in 2019). I just completed a draft of the form. I made a few wrong turns in completing the form before getting back on track but the form worked for me, resulting in a forgiveness of $15,385 on a loan of $20,832. I had no Schedule C rent/mortgage/utilities expenses for the relevant period.

So that's a bit of a relief.
how did a solo 401k or defined benefit plan work into it? Are you still limited my the $100k?
Other than owner compensation, the only forgiveness components for the self-employed are Schedule C rent/mortgage/utilities--as provided in the April 14th guidance (question f) and as reflected in the forgiveness form.

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Theseus
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Theseus » Wed May 20, 2020 12:54 pm

Harry Livermore wrote:
Sat May 16, 2020 2:05 pm

cannot be used for repayment of long-term debt: I was going to pay off a business line of credit, which is 8%, with some of the proceeds. In my non-accountant brain, I consider an LOC short-term debt; it's not a mortgage, nor does it have a repayment schedule. Seem reasonable?
This is somewhat of a murky area and not sure how SBA will rule on this. The SBA often takes the position that as long as the line item expense cannot be deferred (loan payment deferred) or abated (your rent has been reduced) they will accept it. However if the LOC was regularly used to sustain the operations of the business such as payroll, rent, utilities, meeting other loan payments and accounts payable then it is permissible. So I am assuming the "other loan payments" could be LOC. But there is no certainty in my mind.

Keep in mind the intent of EIDL is to help the business pay ordinary and necessary operating expenses going forward and because of the Coronavirus, the business can no longer pay its bills.

Harry Livermore wrote:
Sat May 16, 2020 2:05 pm

cannot be used for owner compensation other than "normal" wages: what implications for a single person LLC/ sole prop? I probably won't need to use the loan for this purpose, but a normal biweekly draw, if within the limits of prior years' income, might be allowed?
Yes. So long as this is part of sustaining the business operations - which includes payroll.

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Harry Livermore
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Harry Livermore » Wed May 20, 2020 2:00 pm

Theseus wrote:
Wed May 20, 2020 12:54 pm

if the LOC was regularly used to sustain the operations of the business such as payroll, rent, utilities, meeting other loan payments and accounts payable then it is permissible. So I am assuming the "other loan payments" could be LOC. But there is no certainty in my mind.

Keep in mind the intent of EIDL is to help the business pay ordinary and necessary operating expenses going forward and because of the Coronavirus, the business can no longer pay its bills.
Thank you for the reply. How about this- I took a $7K draw from the LOC after the COVID shutdown (fearful that the credit markets might be impacted and we'd find LOCs being frozen) Paying that back would seem to be a safe choice, and maybe wait to pay back the balance until further guidance is issued. The balance ($15K) has bounced up and down over the years as cashflow has waxed and waned. So I use it regularly but it gets repaid and then drawn upon.
Theseus, do you have a link to the actual restrictions? I thought they were in my loan docs but I can't find them. I also can't parse my way through all 800 pages of the CARES act :happy
Cheers

knightrider
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by knightrider » Fri May 22, 2020 8:19 pm

Now that I have my PPP money, can I apply for benefits from Pandemic Unemployment Insurance? I am confused on the difference between PPP and PUI?

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gasdoc
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by gasdoc » Sat May 23, 2020 8:21 am

knightrider wrote:
Fri May 22, 2020 8:19 pm
Now that I have my PPP money, can I apply for benefits from Pandemic Unemployment Insurance? I am confused on the difference between PPP and PUI?
Until someone else gives a better answer, the consensus here has been that you can only use both if you are using them for different time periods. What I did was claim the weeks prior to receiving the PPP for PUI. Once I received the PPP, I stopped claiming the PUI. They cannot be used concurrently; that is my understanding.

gasdoc

knightrider
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by knightrider » Sat May 23, 2020 12:06 pm

gasdoc wrote:
Sat May 23, 2020 8:21 am

Until someone else gives a better answer, the consensus here has been that you can only use both if you are using them for different time periods. What I did was claim the weeks prior to receiving the PPP for PUI. Once I received the PPP, I stopped claiming the PUI. They cannot be used concurrently; that is my understanding.

gasdoc
Thanks! My understanding is PUI can last for upto 39 weeks? Whereas PPP is only meant for 8 weeks? So everyone should be applying for PUI as we are now past 8 weeks since the crisis started?

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Theseus
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Theseus » Sat May 23, 2020 1:05 pm

knightrider wrote:
Sat May 23, 2020 12:06 pm
gasdoc wrote:
Sat May 23, 2020 8:21 am

Until someone else gives a better answer, the consensus here has been that you can only use both if you are using them for different time periods. What I did was claim the weeks prior to receiving the PPP for PUI. Once I received the PPP, I stopped claiming the PUI. They cannot be used concurrently; that is my understanding.

gasdoc
Thanks! My understanding is PUI can last for upto 39 weeks? Whereas PPP is only meant for 8 weeks? So everyone should be applying for PUI as we are now past 8 weeks since the crisis started?
8 weeks is from the date the PPP loan money is received. Many are still getting their PPP.

You can not double dip. If you get PPP, then you are (and should be) back on payroll and that will mean you have to stop unemployment. Otherwise it won't be forgiven and will end up being a 1% loan for 2 years.

knightrider
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by knightrider » Sat May 23, 2020 1:51 pm

Theseus wrote:
Sat May 23, 2020 1:05 pm


8 weeks is from the date the PPP loan money is received. Many are still getting their PPP.

You can not double dip. If you get PPP, then you are (and should be) back on payroll and that will mean you have to stop unemployment. Otherwise it won't be forgiven and will end up being a 1% loan for 2 years.
I understand about not double dipping. But it seems we can apply for unemployment for the weeks until PPP is received AND eight weeks after PPP is received? Is that correct?

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Theseus
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Theseus » Sat May 23, 2020 1:54 pm

knightrider wrote:
Sat May 23, 2020 1:51 pm
Theseus wrote:
Sat May 23, 2020 1:05 pm


8 weeks is from the date the PPP loan money is received. Many are still getting their PPP.

You can not double dip. If you get PPP, then you are (and should be) back on payroll and that will mean you have to stop unemployment. Otherwise it won't be forgiven and will end up being a 1% loan for 2 years.
I understand about not double dipping. But it seems we can apply for unemployment for the weeks until PPP is received AND eight weeks after PPP is received? Is that correct?
Correct. That is an appropriate way to approach it if you ended up unemployed for that long. That will be stressful and I hope it doesn’t come to that for you.

knightrider
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by knightrider » Sat May 23, 2020 1:58 pm

Theseus wrote:
Sat May 23, 2020 1:54 pm
Correct. That is an appropriate way to approach it if you ended up unemployed for that long. That will be stressful and I hope it doesn’t come to that for you.

I'm actually a sole-proprietor. Sales have been down since covid hit and I don't see light at the end of the tunnel. I am assuming this pandemic unemployment insurance applies to people like me with no W2 income ( all 1099-MISC and cash )?

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Theseus
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Theseus » Sat May 23, 2020 3:53 pm

knightrider wrote:
Sat May 23, 2020 1:58 pm
Theseus wrote:
Sat May 23, 2020 1:54 pm
Correct. That is an appropriate way to approach it if you ended up unemployed for that long. That will be stressful and I hope it doesn’t come to that for you.

I'm actually a sole-proprietor. Sales have been down since covid hit and I don't see light at the end of the tunnel. I am assuming this pandemic unemployment insurance applies to people like me with no W2 income ( all 1099-MISC and cash )?
The law allows for PUI to be available to individuals like you. But States have been slow in rolling it out. I am more familiar with PPP and EIDL than on PUI and Unemployment specifics. But others may be able to chime in as to how that part of the law is being implemented.

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gasdoc
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by gasdoc » Sat May 23, 2020 4:53 pm

Theseus wrote:
Sat May 23, 2020 3:53 pm
knightrider wrote:
Sat May 23, 2020 1:58 pm
Theseus wrote:
Sat May 23, 2020 1:54 pm
Correct. That is an appropriate way to approach it if you ended up unemployed for that long. That will be stressful and I hope it doesn’t come to that for you.

I'm actually a sole-proprietor. Sales have been down since covid hit and I don't see light at the end of the tunnel. I am assuming this pandemic unemployment insurance applies to people like me with no W2 income ( all 1099-MISC and cash )?
The law allows for PUI to be available to individuals like you. But States have been slow in rolling it out. I am more familiar with PPP and EIDL than on PUI and Unemployment specifics. But others may be able to chime in as to how that part of the law is being implemented.
I would just say that in Georgia, the first step is to apply as normal to Georgia Unemployment. Sole Proprietors get denied, because they have not paid into the system. But then a followup email or letter arrives saying you may have a chance at Pandemic Unemployment Insurance (PUI). It included a link to the site for application. Once at that site, it took a couple of weeks to start getting money. I was actually back at work part time before I applied for the back weeks of PUI, and received both weeks I applied for. Hope this helps.

gasdoc

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Harry Livermore
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Harry Livermore » Wed May 27, 2020 10:32 am

Theseus wrote:
Sat Mar 28, 2020 10:09 am

I have been reading up on this through various sources as I am going to be helping many businesses through my volunteering at SCORE.
Hi Theseus.
I'm back to follow up on some mixed messaging that revolves around approved uses of the EIDL. I have a small group of colleagues in the same business as me. One of them pointed out, that while all the "guidance" around approved uses (mostly CPA web sites and slideshows from the SBA but not actually seemingly codified in an official document) excludes new purchases of equipment, the actual loan doc goes on to stipulate "Borrower will, to the extent feasible, purchase only American-made equipment and products with the proceeds of this Loan." So which is it? Does the SBA mean "equipment" below a certain threshold of dollar value? Does it mean office equipment versus a large offset printing press or CNC machine?
As my colleague points out, the actual loan note signed by both parties does not specify many of the exclusions being cited by CPA firms, etc.
Is there an actual document available anywhere that spells things out plainly, that is perhaps guiding these experts? I have searched and searched to no avail.
I understand that the spirit of the loan is to help small businesses through the shutdown by supporting "ongoing expenses" but they really should spell it out if they expect people to know HOW to abide by the rules.
My dream is to simply pay most of it back later this year because things are back to normal.
But it has been a lively discussion amongst my group.
Cheers

ETA: spelling

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Theseus
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Theseus » Thu May 28, 2020 9:27 am

Harry Livermore wrote:
Wed May 27, 2020 10:32 am
Theseus wrote:
Sat Mar 28, 2020 10:09 am

I have been reading up on this through various sources as I am going to be helping many businesses through my volunteering at SCORE.
Hi Theseus.
I'm back to follow up on some mixed messaging that revolves around approved uses of the EIDL. I have a small group of colleagues in the same business as me. One of them pointed out, that while all the "guidance" around approved uses (mostly CPA web sites and slideshows from the SBA but not actually seemingly codified in an official document) excludes new purchases of equipment, the actual loan doc goes on to stipulate "Borrower will, to the extent feasible, purchase only American-made equipment and products with the proceeds of this Loan." So which is it? Does the SBA mean "equipment" below a certain threshold of dollar value? Does it mean office equipment versus a large offset printing press or CNC machine?
As my colleague points out, the actual loan note signed by both parties does not specify many of the exclusions being cited by CPA firms, etc.
Is there an actual document available anywhere that spells things out plainly, that is perhaps guiding these experts? I have searched and searched to no avail.
I understand that the spirit of the loan is to help small businesses through the shutdown by supporting "ongoing expenses" but they really should spell it out if they expect people to know HOW to abide by the rules.
My dream is to simply pay most of it back later this year because things are back to normal.
But it has been a lively discussion amongst my group.
Cheers

ETA: spelling
Good morning Harry

Now that the mad rush to get the loan is behind us, everyone who received the loans (especially EIDL) are struggling in figuring out what is allowable. Unfortunately there is no clear guidance on variety of situations and I have been giving common sense advise where possible with a caveat that SBA may still question the use.

For example, if you are running a small Montessori school and you have 5 rooms in your building. Now your state guidance dictates that you have to have separate AC, Airexchange, UV lights in HVAC for each room to be able to open the facility. Would the expense to install these things be considered as allowable use of EIDL or it's an expansion? If the rooms require attached bathrooms to avoid cross contamination is that allowable? If you create an outdoor space with a shed to conduct class rooms outside, is that expansion? I (not SBA that I know of) have taken the position that this is allowable expense to "restore the operations" - obviously with the caveat.

While this example doesn't help answer your question directly, it outlines incredible number of situations that require guidance that is unlikely to be given in an appropriate timeframe.

To answer your specific questions,
1) I am not aware of any specific $ threshold
2) No specific guidance that I am aware of as to what would constitute an equipment or a product.
3) In this situation I would document your efforts to purchase American made products. E.g. you are buying furniture, indicate to your vendor (in an official request) that you require American made furniture included in the quote as an option. You can select furniture based on this quote that is not American made if that ends up being necessary and reasonable to restore operations under financial duress. However wether SBA will accept it or not is unknown. But at least you have made a reasonable effort. .

Unfortunately without a clear guidance, the EIDL is not going to serve it's purpose in so many gray areas and businesses will end up not using the EIDL money.

go_mets
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by go_mets » Thu May 28, 2020 9:38 am

Hi, Theseus,

I have been approved for UI under PUA although I have yet to see a cent of it. :annoyed

I have also applied for PPP although I have not been approved.

What do I do should I receive both?
The UI is for weeks in April and May and going forward.
I probably won't be approved for the PPP until early June.

.

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Theseus
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Theseus » Thu May 28, 2020 9:43 am

go_mets wrote:
Thu May 28, 2020 9:38 am
Hi, Theseus,

I have been approved for UI under PUA although I have yet to see a cent of it. :annoyed

I have also applied for PPP although I have not been approved.

What do I do should I receive both?
The UI is for weeks in April and May and going forward.
I probably won't be approved for the PPP until early June.

.
You should stay on UI & PUA until your PPP arrives. Then you can use PPP for allowable purposes (to ensure forgiveness) during the 8 weeks. (There is a mounting pressure in congress to extend this 8 week timeframe to allow some businesses that can't use the funds as effectively due to lockdown). Hopefully by the time the PPP funds are fully utilized, you are back to being normal. In an unfortunate event that does not happen then you can go back on UI and PUA. This is the guidance I have given to some of my SCORE clients.

EnjoyIt
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by EnjoyIt » Thu May 28, 2020 9:51 am

I applied for EIDL on April 2nd. Today I finally got an email saying they have it. Still no monies, but at least they have it. :oops:
I guess it makes no difference since I got a PPP loan.

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Harry Livermore
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Harry Livermore » Thu May 28, 2020 9:54 am

Theseus wrote:
Thu May 28, 2020 9:27 am

Unfortunately without a clear guidance, the EIDL is not going to serve it's purpose in so many gray areas and businesses will end up not using the EIDL money.
Hi Theseus,
Thanks for the quick reply. I'll keep an eye out for guidance, if and when it comes. Hopefully the community here will as well. Again, my dream is to hand most of it back.
Cheers

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Theseus
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Theseus » Thu May 28, 2020 9:54 am

EnjoyIt wrote:
Thu May 28, 2020 9:51 am
I applied for EIDL on April 2nd. Today I finally got an email saying they have it. Still no monies, but at least they have it. :oops:
I guess it makes no difference since I got a PPP loan.
Not sure of your exact situation and business. But I always recommend to take the EIDL so your are capitalized - even when you have received PPP. Payments don't start for 12 months so you can always return it without a prepayment penalty. Only thing you will owe is 3.75% interest - that is amazingly low cost of capital.

EnjoyIt
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by EnjoyIt » Thu May 28, 2020 10:11 am

Theseus wrote:
Thu May 28, 2020 9:54 am
EnjoyIt wrote:
Thu May 28, 2020 9:51 am
I applied for EIDL on April 2nd. Today I finally got an email saying they have it. Still no monies, but at least they have it. :oops:
I guess it makes no difference since I got a PPP loan.
Not sure of your exact situation and business. But I always recommend to take the EIDL so your are capitalized - even when you have received PPP. Payments don't start for 12 months so you can always return it without a prepayment penalty. Only thing you will owe is 3.75% interest - that is amazingly low cost of capital.
Thanks...I personally do not need the extra capital at a 3.75% rate. If it was at the 1% rate of PPP I would take all I can get and pay off some of my other debt.

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Theseus
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Theseus » Thu May 28, 2020 10:15 am

EnjoyIt wrote:
Thu May 28, 2020 10:11 am
Theseus wrote:
Thu May 28, 2020 9:54 am
EnjoyIt wrote:
Thu May 28, 2020 9:51 am
I applied for EIDL on April 2nd. Today I finally got an email saying they have it. Still no monies, but at least they have it. :oops:
I guess it makes no difference since I got a PPP loan.
Not sure of your exact situation and business. But I always recommend to take the EIDL so your are capitalized - even when you have received PPP. Payments don't start for 12 months so you can always return it without a prepayment penalty. Only thing you will owe is 3.75% interest - that is amazingly low cost of capital.
Thanks...I personally do not need the extra capital at a 3.75% rate. If it was at the 1% rate of PPP I would take all I can get and pay off some of my other debt.
You can't use PPP to pay off other debt. That is not allowable use. Following are allowable.

1. Payroll costs including benefits (must be at least 75% the loan money to be fully forgiven otherwise it will be prorated)
2. Interest on mortgage obligations incurred before Feb. 15, 2020
3. Rent, under lease agreements in force before Feb. 15, 2020
4. Utilities, for which service began before Feb. 15, 2020

knightrider
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by knightrider » Thu May 28, 2020 10:42 am

Asking on behalf of my Dad who is retired. He earns around 16k/year in W2 income from a local university. He also does consulting ( guest lecturing ) and earns around 32k/year from that. The university is still paying his W2 income.

Will he still qualify for pandemic unemployment insurance (PUI) for lost income on the consulting side? He already applied for PPP. I understand that PUI is only valid for the time till you get the PPP money and eight weeks after that.

In short, will his meager $16k/year W2 income disqualify him from getting PUI?

EnjoyIt
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by EnjoyIt » Thu May 28, 2020 10:46 am

Theseus wrote:
Thu May 28, 2020 10:15 am
EnjoyIt wrote:
Thu May 28, 2020 10:11 am
Theseus wrote:
Thu May 28, 2020 9:54 am
EnjoyIt wrote:
Thu May 28, 2020 9:51 am
I applied for EIDL on April 2nd. Today I finally got an email saying they have it. Still no monies, but at least they have it. :oops:
I guess it makes no difference since I got a PPP loan.
Not sure of your exact situation and business. But I always recommend to take the EIDL so your are capitalized - even when you have received PPP. Payments don't start for 12 months so you can always return it without a prepayment penalty. Only thing you will owe is 3.75% interest - that is amazingly low cost of capital.
Thanks...I personally do not need the extra capital at a 3.75% rate. If it was at the 1% rate of PPP I would take all I can get and pay off some of my other debt.
You can't use PPP to pay off other debt. That is not allowable use. Following are allowable.

1. Payroll costs including benefits (must be at least 75% the loan money to be fully forgiven otherwise it will be prorated)
2. Interest on mortgage obligations incurred before Feb. 15, 2020
3. Rent, under lease agreements in force before Feb. 15, 2020
4. Utilities, for which service began before Feb. 15, 2020
Thanks for clarifying on my behalf, but I already realize what you wrote. Money is fungible none theless and as long as I make payroll as imposed by PPP I am good.

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gasdoc
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by gasdoc » Thu May 28, 2020 11:03 am

EnjoyIt wrote:
Thu May 28, 2020 10:46 am
Theseus wrote:
Thu May 28, 2020 10:15 am
EnjoyIt wrote:
Thu May 28, 2020 10:11 am
Theseus wrote:
Thu May 28, 2020 9:54 am
EnjoyIt wrote:
Thu May 28, 2020 9:51 am
I applied for EIDL on April 2nd. Today I finally got an email saying they have it. Still no monies, but at least they have it. :oops:
I guess it makes no difference since I got a PPP loan.
Not sure of your exact situation and business. But I always recommend to take the EIDL so your are capitalized - even when you have received PPP. Payments don't start for 12 months so you can always return it without a prepayment penalty. Only thing you will owe is 3.75% interest - that is amazingly low cost of capital.
Thanks...I personally do not need the extra capital at a 3.75% rate. If it was at the 1% rate of PPP I would take all I can get and pay off some of my other debt.
You can't use PPP to pay off other debt. That is not allowable use. Following are allowable.

1. Payroll costs including benefits (must be at least 75% the loan money to be fully forgiven otherwise it will be prorated)
2. Interest on mortgage obligations incurred before Feb. 15, 2020
3. Rent, under lease agreements in force before Feb. 15, 2020
4. Utilities, for which service began before Feb. 15, 2020
Thanks for clarifying on my behalf, but I already realize what you wrote. Money is fungible none theless and as long as I make payroll as imposed by PPP I am good.
Enjoyit, I appreciate your post. The exact same thing happened to me. The PPP came through, and now the EIDL finally is available to me- but I think I will let it go because I no longer need the loan, and it looks like the $1000 I would get would not be forgiven on top of the PPP.

gasdoc

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