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

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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 » Mon May 04, 2020 5:10 am

veindoc wrote:
Sun May 03, 2020 7:05 pm

Did you get a chance to ask for a EIDL loan amount? I got an SBA email stating EIDL loan was going first come first serve. I applied for the loan advance which was funded but never had the opportunity to actually apply for the loan or rather was not given an opportunity. What is the formula they use to determine a loan amount? Is there a separate email that directs you to a an actual loan application?
I was never prompted to compute or request an amount. Very strange. I'll report back if and when the next steps happen and I see the amount.
Cheers

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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 » Mon May 04, 2020 5:18 am

jolmscheid wrote:
Sun May 03, 2020 9:14 pm

Where does it say that self-employed cannot have the PPP and the unemployment assistance (PUA)? I have been trying to find out if one can still get unemployment and the PPP?
I don't in fact know that for sure. But PUA was specifically created for self-employed people, or those with a pass-through (LLC on a Schedule C, in my example) who are not working due to the shutdown, and would not otherwise be eligible for state UI. If my LLC is going to pass-through PPP money on a weekly basis during the 8 weeks post-funding, it seems, to me that I'm not longer "unemployed".
I will re-evaluate after the 8 week period, and hopefully more guidance will come. It just seems safer to not jeopardize the larger amount of money from the PPP by taking the PUA, which at $600/ week is not going to make much of a difference in the end anyway.
Cheers

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

Post by jolmscheid » Mon May 04, 2020 5:55 am

Harry Livermore wrote:
Mon May 04, 2020 5:18 am
jolmscheid wrote:
Sun May 03, 2020 9:14 pm

Where does it say that self-employed cannot have the PPP and the unemployment assistance (PUA)? I have been trying to find out if one can still get unemployment and the PPP?
I don't in fact know that for sure. But PUA was specifically created for self-employed people, or those with a pass-through (LLC on a Schedule C, in my example) who are not working due to the shutdown, and would not otherwise be eligible for state UI. If my LLC is going to pass-through PPP money on a weekly basis during the 8 weeks post-funding, it seems, to me that I'm not longer "unemployed".
I will re-evaluate after the 8 week period, and hopefully more guidance will come. It just seems safer to not jeopardize the larger amount of money from the PPP by taking the PUA, which at $600/ week is not going to make much of a difference in the end anyway.
Cheers
Thank you for the reply...makes sense!

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

Post by simplesimon » Mon May 04, 2020 6:54 am

SBA announced yesterday that there's still over $100B available. Average loan size is down considerably. Those that didn't get their PPP application approved yet will probably still get it. Hang in there!

https://www.sba.gov/about-sba/sba-newsr ... s-paycheck

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

Post by JonnyDVM » Mon May 04, 2020 7:35 am

So this is interesting. Got an email from Pay Pal this morning-

"We submitted your completed application to the SBA and have received a response from the SBA indicating another provider has already secured a PPP loan for your business/organization. Each business entity can only receive one PPP loan. Therefore, we will not be able to continue the processing of your loan application."

No email from either of the two entities I applied through. I mean nothing at all since I applied. Quickbooks says my application is still processing. The BOA application looks like it did when I applied a month ago. Sooooo who has my funding and why haven't they felt the need to update me?
I'm extremely confused :confused
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gasdoc
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by gasdoc » Mon May 04, 2020 8:56 am

Theseus wrote:
Fri May 01, 2020 5:18 pm
gasdoc wrote:
Fri May 01, 2020 5:14 pm
Now I would like to go ahead and prepay the part of the loan I know will not be forgiven (I am a sole proprietor and have no overhead.). Does anyone know if this can be done? Apparently, there are no payments for six months, but interest accrues immediately on the non-forgiven part.

gasdoc
I would wait if I were you to prepay. I don’t think we have see Final guidance on forgiveness rules and I have a feeling there will be more clarification.
This is exactly what the loan officer at the credit union told me in an email I received after posting this message. I got the feeling the credit union wouldn't know what to do with the money if I sent it to them.

gasdoc

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

Post by cowdogman » Mon May 04, 2020 12:01 pm

gasdoc wrote:
Mon May 04, 2020 8:56 am
Theseus wrote:
Fri May 01, 2020 5:18 pm
gasdoc wrote:
Fri May 01, 2020 5:14 pm
Now I would like to go ahead and prepay the part of the loan I know will not be forgiven (I am a sole proprietor and have no overhead.). Does anyone know if this can be done? Apparently, there are no payments for six months, but interest accrues immediately on the non-forgiven part.

gasdoc
I would wait if I were you to prepay. I don’t think we have see Final guidance on forgiveness rules and I have a feeling there will be more clarification.
This is exactly what the loan officer at the credit union told me in an email I received after posting this message. I got the feeling the credit union wouldn't know what to do with the money if I sent it to them.

gasdoc
Assuming the guidance for self-employed (no employees) Schedule C borrowers doesn't change and assuming a $20,833 loan, 1% interest on the unforgiven amount will be about $50 per year. I plan to setup auto pay from my business checking account and forget about it.

Speaking of repayment, does anyone know the amortization schedule for repayment? Is it a bullet payment at two years or monthly mortgage style amortization or something else?

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MP123
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by MP123 » Mon May 04, 2020 12:11 pm

cowdogman wrote:
Mon May 04, 2020 12:01 pm
gasdoc wrote:
Mon May 04, 2020 8:56 am
Theseus wrote:
Fri May 01, 2020 5:18 pm
gasdoc wrote:
Fri May 01, 2020 5:14 pm
Now I would like to go ahead and prepay the part of the loan I know will not be forgiven (I am a sole proprietor and have no overhead.). Does anyone know if this can be done? Apparently, there are no payments for six months, but interest accrues immediately on the non-forgiven part.

gasdoc
I would wait if I were you to prepay. I don’t think we have see Final guidance on forgiveness rules and I have a feeling there will be more clarification.
This is exactly what the loan officer at the credit union told me in an email I received after posting this message. I got the feeling the credit union wouldn't know what to do with the money if I sent it to them.

gasdoc
Assuming the guidance for self-employed (no employees) Schedule C borrowers doesn't change and assuming a $20,833 loan, 1% interest on the unforgiven amount will be about $50 per year. I plan to setup auto pay from my business checking account and forget about it.

Speaking of repayment, does anyone know the amortization schedule for repayment? Is it a bullet payment at two years or monthly mortgage style amortization or something else?
The Promissory Note from BofA allows them to direct debit the account for payments if the loan isn't forgiven. But no amortization schedule is attached. So once again, nobody knows nothing.

novice111
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by novice111 » Mon May 04, 2020 1:44 pm

i applied yesterday for the PPP via paypal-loanbuilder, submitted my documents showing proof of payroll.
this morning i received loan documents from paypal-loanbuilder showing a loan amount of only 1.43x and not the 2.5x that i had asked for.

i haven't signed.
what should i do?

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MP123
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by MP123 » Mon May 04, 2020 2:29 pm

novice111 wrote:
Mon May 04, 2020 1:44 pm
i applied yesterday for the PPP via paypal-loanbuilder, submitted my documents showing proof of payroll.
this morning i received loan documents from paypal-loanbuilder showing a loan amount of only 1.43x and not the 2.5x that i had asked for.

i haven't signed.
what should i do?
Did you cap salaries at $100k? That might explain the reduction.

Assuming there's no way to contact a human that can clarify why they made the change you may just want to accept the loan while you can. Most banks seem to allow up to 10 days to sign, yours may be different of course.

novice111
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by novice111 » Mon May 04, 2020 2:57 pm

MP123 wrote:
Mon May 04, 2020 2:29 pm
novice111 wrote:
Mon May 04, 2020 1:44 pm
i applied yesterday for the PPP via paypal-loanbuilder, submitted my documents showing proof of payroll.
this morning i received loan documents from paypal-loanbuilder showing a loan amount of only 1.43x and not the 2.5x that i had asked for.

i haven't signed.
what should i do?
Did you cap salaries at $100k? That might explain the reduction.

Assuming there's no way to contact a human that can clarify why they made the change you may just want to accept the loan while you can. Most banks seem to allow up to 10 days to sign, yours may be different of course.
My salary was way less than $100k and the loan amount 2.5x payroll was also under $10k. Still, they've put down my avg monthly payroll as way less than it is :confused

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

Post by jjface » Mon May 04, 2020 3:00 pm

simplesimon wrote:
Mon May 04, 2020 6:54 am
SBA announced yesterday that there's still over $100B available. Average loan size is down considerably. Those that didn't get their PPP application approved yet will probably still get it. Hang in there!

https://www.sba.gov/about-sba/sba-newsr ... s-paycheck
I get the feeling a lot of businesses were scared off with the talks or repayment and audits.

novice111
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by novice111 » Mon May 04, 2020 3:11 pm

novice111 wrote:
Mon May 04, 2020 2:57 pm
MP123 wrote:
Mon May 04, 2020 2:29 pm
novice111 wrote:
Mon May 04, 2020 1:44 pm
i applied yesterday for the PPP via paypal-loanbuilder, submitted my documents showing proof of payroll.
this morning i received loan documents from paypal-loanbuilder showing a loan amount of only 1.43x and not the 2.5x that i had asked for.

i haven't signed.
what should i do?
Did you cap salaries at $100k? That might explain the reduction.

Assuming there's no way to contact a human that can clarify why they made the change you may just want to accept the loan while you can. Most banks seem to allow up to 10 days to sign, yours may be different of course.
My salary was way less than $100k and the loan amount 2.5x payroll was also under $10k. Still, they've put down my avg monthly payroll as way less than it is :confused
it seems they're using income in box 1 instead of box 2 or 3

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Fat-Tailed Contagion
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Fat-Tailed Contagion » Mon May 04, 2020 8:32 pm

Anyone know whether an Independent Contractor can get a $1,000 EIDL loan AND also PUA benefits?
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crystalbank
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by crystalbank » Tue May 05, 2020 2:15 pm

crystalbank wrote:
Fri May 01, 2020 4:20 pm
Decided to ditch PayPal/Webbank and go with another local Small Business oriented bank. They made me open a bank account along with the PPP application and I submitted a bunch of paperwork today. Still waiting for them to confirm everything and submit to the application to the SBA.

I'm not really getting my hopes up though.
PayPal/Webbank finally came through!

So after 3 days finishing the PPP loan at a local bank, I called in to see the status of the application. They told me they haven't yet submitted it the SBA and wouldn't give any timeline but hinted it could take more than a week and they have everything they need and signed.

So I called PayPal to withdraw my PPP application (it was stuck in a limbo due to due to an issue with Docusign which didn't let me finish signing) and the operator was curious enough to find out what happened and suggested he can escalate the issue internally and I wait until the end of the day before withdrawing my application. After an hour I get another email from DocuSign and this time it worked somehow. A day later, my loan is approved and the funds already deposited in my account.

novice111
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by novice111 » Tue May 05, 2020 6:48 pm

novice111 wrote:
Mon May 04, 2020 3:11 pm
novice111 wrote:
Mon May 04, 2020 2:57 pm
MP123 wrote:
Mon May 04, 2020 2:29 pm
novice111 wrote:
Mon May 04, 2020 1:44 pm
i applied yesterday for the PPP via paypal-loanbuilder, submitted my documents showing proof of payroll.
this morning i received loan documents from paypal-loanbuilder showing a loan amount of only 1.43x and not the 2.5x that i had asked for.

i haven't signed.
what should i do?
Did you cap salaries at $100k? That might explain the reduction.

Assuming there's no way to contact a human that can clarify why they made the change you may just want to accept the loan while you can. Most banks seem to allow up to 10 days to sign, yours may be different of course.
My salary was way less than $100k and the loan amount 2.5x payroll was also under $10k. Still, they've put down my avg monthly payroll as way less than it is :confused
it seems they're using income in box 1 instead of box 2 or 3

does anybody know if box 1 is the correct box to use? That's wages minus retirement account contributions and business expenses. How can they use that box to calculate paycheck?
However Kabbage also asks for box 1 on their initial application

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MP123
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by MP123 » Tue May 05, 2020 8:34 pm

novice111 wrote:
Tue May 05, 2020 6:48 pm
novice111 wrote:
Mon May 04, 2020 3:11 pm
novice111 wrote:
Mon May 04, 2020 2:57 pm
MP123 wrote:
Mon May 04, 2020 2:29 pm
novice111 wrote:
Mon May 04, 2020 1:44 pm
i applied yesterday for the PPP via paypal-loanbuilder, submitted my documents showing proof of payroll.
this morning i received loan documents from paypal-loanbuilder showing a loan amount of only 1.43x and not the 2.5x that i had asked for.

i haven't signed.
what should i do?
Did you cap salaries at $100k? That might explain the reduction.

Assuming there's no way to contact a human that can clarify why they made the change you may just want to accept the loan while you can. Most banks seem to allow up to 10 days to sign, yours may be different of course.
My salary was way less than $100k and the loan amount 2.5x payroll was also under $10k. Still, they've put down my avg monthly payroll as way less than it is :confused
it seems they're using income in box 1 instead of box 2 or 3

does anybody know if box 1 is the correct box to use? That's wages minus retirement account contributions and business expenses. How can they use that box to calculate paycheck?
However Kabbage also asks for box 1 on their initial application
In our case BofA apparently approved the amount based on 940 box 3, which is pretty much the broadest measure of wages.

You're right that W2 box 1 excludes your deferral to i401k, and in general I think it should be included subject to the $100k cap, at least as I understand it. Not sure why they used W2 rather than 940/941 as BofA did.

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

Post by knightrider » Sat May 09, 2020 10:06 pm

How does one apply for PPP if you have no business checking account? All 1099-MISC income goes to personal checking. Asking for my Dad.

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

Post by AerialWombat » Sat May 09, 2020 10:30 pm

.....
Last edited by AerialWombat on Sun May 17, 2020 2:55 pm, edited 1 time in total.

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

Post by simplesimon » Sun May 10, 2020 2:14 am

knightrider wrote:
Sat May 09, 2020 10:06 pm
How does one apply for PPP if you have no business checking account? All 1099-MISC income goes to personal checking. Asking for my Dad.
There’s no requirement to having a business checking account by the SBA. Some lenders may want you to open a new one with them. PayPal will fund to the personal account.

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

Post by gasdoc » Sun May 10, 2020 6:33 pm

simplesimon wrote:
Sun May 10, 2020 2:14 am
knightrider wrote:
Sat May 09, 2020 10:06 pm
How does one apply for PPP if you have no business checking account? All 1099-MISC income goes to personal checking. Asking for my Dad.
There’s no requirement to having a business checking account by the SBA. Some lenders may want you to open a new one with them. PayPal will fund to the personal account.
I do not have a separate business account, and I was approved for the PPP. I did, though, temporarily open a new checking account and put the PPP proceeds in there. I did this only so that I knew and could demonstrate when the actual payments were made from the PPP.

gasdoc

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

Post by phoebekins » Sun May 10, 2020 6:40 pm

Since it took so long to actually get approved and funded for PPP now I have a dilemma. I am an independent contractor at a private practice and have been off work since mid March. I waited to apply for California's PUA until the week of 4/26 because I was under the impression that I couldn't get regular UI. Turns out the 5 days I worked for another office on a W2 basis in 2019 was enough to qualify me for UI but not automatically backdated (and it's smaller than the PUA award).

So now, I got my PPP on 5/7 but will be going back to work on 5/18. Obviously I can't take UI and PPP at the same time so what do I do about the UI claim? And can I still use the PPP for payroll/owner compensation in the next 8 weeks even if I'm now working (and getting paid) again? Right now, the PPP basically has replaced my lost income for the last 2 months. But, what if I have to reduce or close entirely again in the next few weeks, what would be replacing my income then? I don't think my UI would pay out since I'd have to report my job's income as well as the income from PPP.

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

Post by knightrider » Sun May 10, 2020 8:44 pm

gasdoc wrote:
Sun May 10, 2020 6:33 pm

I do not have a separate business account, and I was approved for the PPP. I did, though, temporarily open a new checking account and put the PPP proceeds in there. I did this only so that I knew and could demonstrate when the actual payments were made from the PPP.

gasdoc
Which website do you go to apply?

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

Post by gasdoc » Mon May 11, 2020 9:40 am

knightrider wrote:
Sun May 10, 2020 8:44 pm
gasdoc wrote:
Sun May 10, 2020 6:33 pm

I do not have a separate business account, and I was approved for the PPP. I did, though, temporarily open a new checking account and put the PPP proceeds in there. I did this only so that I knew and could demonstrate when the actual payments were made from the PPP.

gasdoc
Which website do you go to apply?
Application for a PPP is directly through a bank or credit union or a handful of nontraditional lenders. I received mine from a local credit union in my town.

gasdoc

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

Post by go_mets » Mon May 11, 2020 10:14 am

knightrider wrote:
Sun May 10, 2020 8:44 pm
[Which website do you go to apply?
The bank I use for my business checking account partnered with Kabbage.
I am in the application stage.

I am a bit miffed with Kabbage because I did not receive any emails from them for two (2) actions I needed to take.
I did not learn of the actions until I logged in.
I sent an email to them expressing my displeasure.
No response.
Wait and see mode.

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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 » Mon May 11, 2020 12:01 pm

AerialWombat wrote:
Sat May 09, 2020 10:30 pm
Harry Livermore wrote:
Mon May 04, 2020 5:10 am
veindoc wrote:
Sun May 03, 2020 7:05 pm

Did you get a chance to ask for a EIDL loan amount? I got an SBA email stating EIDL loan was going first come first serve. I applied for the loan advance which was funded but never had the opportunity to actually apply for the loan or rather was not given an opportunity. What is the formula they use to determine a loan amount? Is there a separate email that directs you to a an actual loan application?
I was never prompted to compute or request an amount. Very strange. I'll report back if and when the next steps happen and I see the amount.
Cheers
The form you filled out for the “grant” (advance) WAS the loan application. There is nothing further to fill out.

Default loan amount is annual gross receipts minus COGS, divided by 2; aka, six months of working capital. It’s computed automatically, you don’t request a specific loan amount.

Current EIDLs are capped at $150,000 due to appropriations limits.

You will receive an email with instructions to create a disaster loan portal login when you’re next in line. You will not hear anything before that. Check spam folder.

In that portal, you can adjust a slider to request LESS than your calculated loan limit or the $150,000 (lesser of). You cannot request more.
Aerial Wombat, you are exactly right. I got the email sometime over the weekend (it went to my Junk folder again) The amount they were offering seemed like 50% of gross minus COGS. That was a bit more than I think I'd ever want so I slid the slider lower and submitted.
I suppose I'll see what they come back with?
Cheers

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

Post by knightrider » Mon May 11, 2020 12:56 pm

gasdoc wrote:
Mon May 11, 2020 9:40 am
Application for a PPP is directly through a bank or credit union or a handful of nontraditional lenders. I received mine from a local credit union in my town.

gasdoc
Thanks! Could you do everything over the phone/mail ? Or did you have to go in-person?

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

Post by csmath » Mon May 11, 2020 1:17 pm

Just posting here to make sure I'm not missing anything. This is regarding DW situation.

DW essentially has 3 jobs:
  1. Primary Job = 87% Income
  2. Coaching Job = 9% Income
  3. 1099 self employed (independent contractor) = 4% Income
Primary Job is fortunately intact.
The other two jobs are gone due to CoVid-19 restrictions... $0 Income from them since shutdown and appears to be quite some time until able to re-open.

I spoke to someone on the phone from the state unemployment office (or a volunteer?) that said she doesn't qualify for any assistance at all because she still holds "a job" that pays over the maximum UI benefits for our state. This seems correct for normal UI but would she qualify for anything under any of the other programs? The person on the phone seemed irritated when I started asking questions about other programs that might apply and was given the blanket, "no, she still has a job and isn't unemployed" response. It took 2 months to actually talk to a person the first time after countless tries.

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

Post by gasdoc » Mon May 11, 2020 1:29 pm

knightrider wrote:
Mon May 11, 2020 12:56 pm
gasdoc wrote:
Mon May 11, 2020 9:40 am
Application for a PPP is directly through a bank or credit union or a handful of nontraditional lenders. I received mine from a local credit union in my town.

gasdoc
Thanks! Could you do everything over the phone/mail ? Or did you have to go in-person?
I went through a drive through to sign the documents. Everything else was via email.

gasdoc

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

Post by simplesimon » Mon May 11, 2020 1:45 pm

csmath wrote:
Mon May 11, 2020 1:17 pm
Just posting here to make sure I'm not missing anything. This is regarding DW situation.

DW essentially has 3 jobs:
  1. Primary Job = 87% Income
  2. Coaching Job = 9% Income
  3. 1099 self employed (independent contractor) = 4% Income
Primary Job is fortunately intact.
The other two jobs are gone due to CoVid-19 restrictions... $0 Income from them since shutdown and appears to be quite some time until able to re-open.

I spoke to someone on the phone from the state unemployment office (or a volunteer?) that said she doesn't qualify for any assistance at all because she still holds "a job" that pays over the maximum UI benefits for our state. This seems correct for normal UI but would she qualify for anything under any of the other programs? The person on the phone seemed irritated when I started asking questions about other programs that might apply and was given the blanket, "no, she still has a job and isn't unemployed" response. It took 2 months to actually talk to a person the first time after countless tries.
Look to apply to PUA rather than regular UI.

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

Post by csmath » Mon May 11, 2020 2:11 pm

simplesimon wrote:
Mon May 11, 2020 1:45 pm
csmath wrote:
Mon May 11, 2020 1:17 pm
Just posting here to make sure I'm not missing anything. This is regarding DW situation.

DW essentially has 3 jobs:
  1. Primary Job = 87% Income
  2. Coaching Job = 9% Income
  3. 1099 self employed (independent contractor) = 4% Income
Primary Job is fortunately intact.
The other two jobs are gone due to CoVid-19 restrictions... $0 Income from them since shutdown and appears to be quite some time until able to re-open.

I spoke to someone on the phone from the state unemployment office (or a volunteer?) that said she doesn't qualify for any assistance at all because she still holds "a job" that pays over the maximum UI benefits for our state. This seems correct for normal UI but would she qualify for anything under any of the other programs? The person on the phone seemed irritated when I started asking questions about other programs that might apply and was given the blanket, "no, she still has a job and isn't unemployed" response. It took 2 months to actually talk to a person the first time after countless tries.
Look to apply to PUA rather than regular UI.
I did that and was given an Eligibility message that either:
  1. You already have a regular UI claim that has benefits. Use that claim instead of filing for PUA.
  2. One or more employers reported paying wages to you during the timeframe we look at when assessing eligibility for PUA. Because of this, you need to file a claim for standard UI instead of PUA.
The problem is that "option a" is definitely not the case, she doesn't qualify for normal UI, and for "option b" it sounds like if you have ANY income being reported then you don't qualify for PUA, which is what the person on the phone said. I'm posting here because I was not able to find/understand the specific criteria to allow me to self-determine her eligibility and quite frankly I don't blindly trust the person on the phone or the brand new online tool launched today (official state tool). I've read blog's suggesting that CARES helps fill in gaps for independent contractors that have "lost revenue" even if not 100% unemployed.

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

Post by csmath » Tue May 12, 2020 9:56 pm

Bumping.

Maybe PPP is relevant? PUA seems out of the picture unless the guidance given to me was incorrect. I'm about to give up but thought I'd bump one time to see if anyone can offer guidance that would match DW situation. Any level of income replacement is better than none.

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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 13, 2020 5:58 am

csmath wrote:
Tue May 12, 2020 9:56 pm

Maybe PPP is relevant?
I would definitely try for that. It won't be a lot of money in your case since it's only 13% of your wife's income, but the forgivable aspect of it makes it the more attractive option versus the EIDL (I am taking both)
It sounds like getting relief via UI or PUA is proving difficult, so I would certainly try all appropriate programs.
Cheers

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

Post by gasdoc » Wed May 13, 2020 7:02 am

I wouldn't give up on any of the programs. it took me awhile, but I got the PPP for May and June, and was allowed a couple of weeks of PUI for the period of time in April when I was completely furloughed. I was told by colleagues that the PUI was only good for a 2 week look back, but I found that not to be true in my state. I was able to manually put in the weeks where I was off for the entire weeks, and the money went into my account this morning.

gasdoc

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

Post by EnjoyIt » Wed May 13, 2020 9:19 am

I applied for EIDL back in the beginning of April, got a confirmation number and have yet to receive my $1k. Is anyone else in the same boat?

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

Post by gasdoc » Wed May 13, 2020 9:47 am

EnjoyIt wrote:
Wed May 13, 2020 9:19 am
I applied for EIDL back in the beginning of April, got a confirmation number and have yet to receive my $1k. Is anyone else in the same boat?
yup. I've given up on that one.

gasdoc

Adam11
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by Adam11 » Thu May 14, 2020 3:02 pm

gasdoc wrote:
Wed May 13, 2020 9:47 am
EnjoyIt wrote:
Wed May 13, 2020 9:19 am
I applied for EIDL back in the beginning of April, got a confirmation number and have yet to receive my $1k. Is anyone else in the same boat?
yup. I've given up on that one.

gasdoc
I applied for EIDL in the first few hours of applications being accepted and just today received the email from SBA being discussed over in this thread: viewtopic.php?t=314279

I have not received the $1k per employee initial advance that showed up in many folks’ accounts either. My solo 1099 business is very small and I was offered a loan of up to $4k (about a quarter’s worth of net profit). I have no interest in borrowing at 3.75% to support what is essentially a side-gig, so I adjusted the “loan” amount down to $1k (the minimum choice and the forgivable max) and submitted it after verifying my identity and banking info. I’m gonna really have to read the fine print if I’m ever presented Closing Docs to find out if this an actual loan or a forgivable grant. And as early as I got in and for reference, my number was still 330038XXXX.

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

Post by EnjoyIt » Thu May 14, 2020 3:20 pm

gasdoc wrote:
Wed May 13, 2020 9:47 am
EnjoyIt wrote:
Wed May 13, 2020 9:19 am
I applied for EIDL back in the beginning of April, got a confirmation number and have yet to receive my $1k. Is anyone else in the same boat?
yup. I've given up on that one.

gasdoc
I called SBA yesterday and they said they are processing and very backed up.

I expect nothing. But maybe I will be pleasantly surprised and a few weeks.

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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 14, 2020 5:20 pm

EIDL approved for my revised requested amount, and funded today.
I plan to open yet another business account to track the use of this loan very precisely. Like the PPP, it has specific approved and disallowed uses. Equipment leases and ongoing expenses will be paid from this during the shutdown.
Mostly I will be holding onto it as a backstop against the unknown future earnings of my business.
No payments due for the first 12 months. By that time I expect we will all have a clear idea how COVID has shaken out.
Cheers

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

Post by veindoc » Thu May 14, 2020 5:35 pm

Adam11 wrote:
Thu May 14, 2020 3:02 pm
gasdoc wrote:
Wed May 13, 2020 9:47 am
EnjoyIt wrote:
Wed May 13, 2020 9:19 am
I applied for EIDL back in the beginning of April, got a confirmation number and have yet to receive my $1k. Is anyone else in the same boat?
yup. I've given up on that one.

gasdoc
I applied for EIDL in the first few hours of applications being accepted and just today received the email from SBA being discussed over in this thread: viewtopic.php?t=314279

I have not received the $1k per employee initial advance that showed up in many folks’ accounts either. My solo 1099 business is very small and I was offered a loan of up to $4k (about a quarter’s worth of net profit). I have no interest in borrowing at 3.75% to support what is essentially a side-gig, so I adjusted the “loan” amount down to $1k (the minimum choice and the forgivable max) and submitted it after verifying my identity and banking info. I’m gonna really have to read the fine print if I’m ever presented Closing Docs to find out if this an actual loan or a forgivable grant. And as early as I got in and for reference, my number was still 330038XXXX.
Never got that email, but did get my advance. What a random process this is.

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

Post by Bosro » Fri May 15, 2020 10:20 pm


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MP123
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by MP123 » Fri May 15, 2020 10:38 pm

Bosro wrote:
Fri May 15, 2020 10:20 pm
https://home.treasury.gov/system/files/ ... cation.pdf

PPP Forgiveness Form is out now.
Thanks!

Looks about like expected, but will take some time to digest.

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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 » Sat May 16, 2020 1:56 pm

Bosro wrote:
Fri May 15, 2020 10:20 pm
https://home.treasury.gov/system/files/ ... cation.pdf

PPP Forgiveness Form is out now.
Thanks. Looks as maddeningly complex as anything created by the IRS, but I'll ask my CPA, as well as the smart folks here, about filling it out correctly when the time comes.
I assumed that each lending institution would have their own form though, since they are the deciders, right?
Cheers

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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 » Sat May 16, 2020 2:05 pm

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

My goal here is the exchange experiences and help others navigate the complex process to make it most useful in each situation. Basically crowd source the knowledge.
Theseus, thanks again for starting this thread.
I put these questions to the accountant but am waiting to hear back. I got an EIDL loan. I was somewhat surprised to read the fine print giving the SBA the right to audit, specifying insurance requirements on collateral, and also the disallowed uses. Of course, I plan to comply with all, but some "guidance" seems a little murky to me.
Please note that I'm specifically speaking about EIDL, NOT PPP.
I think other posters might be confused by my questions.
I was curious about two prohibited uses in particular:

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?

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?

Mostly I plan to use the proceeds as needed for ongoing expenses and an equipment lease payment. Like the PPP, I opened a new business accounts as a container for the EIDL loan proceeds, and will carefully document every transaction.
Cheers

ETA: clarity
Last edited by Harry Livermore on Sat May 16, 2020 4:00 pm, edited 1 time in total.

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MP123
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Re: Stimulus help for small businesses, sole proprietors, s-corp etc

Post by MP123 » Sat May 16, 2020 2:17 pm

Two things that are abundantly clear from the forgiveness application:

1) You need to use 75% of the amount you want forgiven (not the loan amount) on payroll. There has been confusion about this previously.

2) The EIDL advance amount will be deducted from the forgiveness amount. So you'll essentially give it back. There has also been confusion on this.

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cowdogman
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Location: Washington State

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

Post by cowdogman » 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.

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

Post by knightrider » Mon May 18, 2020 9:07 am

I applied and received my money from Bank of America. But now they've called me three times and want to talk about something ambiguous. I feel it is some sales pitch for more small business banking services. Can I ignore these calls?

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 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?

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

Post by Polymorphic » Mon May 18, 2020 9:31 am

jjface wrote:
Mon May 04, 2020 3:00 pm
simplesimon wrote:
Mon May 04, 2020 6:54 am
SBA announced yesterday that there's still over $100B available. Average loan size is down considerably. Those that didn't get their PPP application approved yet will probably still get it. Hang in there!

https://www.sba.gov/about-sba/sba-newsr ... s-paycheck
I get the feeling a lot of businesses were scared off with the talks or repayment and audits.
I was. "Economic uncertainty" making the loan "necessary to support ongoing operations" leaves too much room for subsequent re-interpretation.

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cowdogman
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Location: Washington State

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

Post by cowdogman » 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.

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