@Racer My limited understanding is you need a bank through which to apply for the PPP program.
That’s correct @qons
The PPP one is the one foregiven though isn’t it?
No the distaster loan advance is. $10,000.00 one time.
They have state the PPP “may” be forgiven if you follow all the guidelines.
Both are forgivable as long as you meet the terms. And it’s pretty easy to meet the terms. Basically, you need to keep the same number of employees (you can fire, but you have to hire someone to replace the fired) and you have to spend most of the money on payroll.
PPP is roughly 2.5 x average monthly salary of all employees. (Though there is confusion since there is no set formula for banks/companies to use to crunch numbers.)
SBA loan is a flat amount up to $10k. (Though they haven’t said how they figure out how much you get.)
Once you’re approved, supposedly you get your SBA loan money within three days.
Again, don’t delay, guys! There is a limited amount of money. When it’s gone, it’s gone.
They $10k relatively chump change though. The PPP is the real money and easy to follow guidelines.
@Hotshot won’t qualify
Applicant does not present live performances of a prurient sexual nature or derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature.
If those are free web performances. They are excluded lol.
Anybody actually put in for one of these loan forgiveness job-a-does?
Yes, to both programs.
I can’t stop other business from stealing from me by getting a loan that doesn’t have to be paid back, but I won’t steal from others. It ain’t free money.
William, I think that you of all business owners should have a clear conscience in accepting any and all relief that you qualify for. You’ve certainly paid Caesar his fair shair over the years.
Yes, we’re all going to be paying for it for years to come. But that decision has been made already.
And i cant help but to agree with both of you.
Be careful taking this loan. From what I understand you have to provide very sufficient evidence at the end of the loans cycle of how exactly you used the money. The loan money is only to be used for certain business aspects and you will be required to show physical sufficient evidence. If it doesnt fit the parameters, your paying it back. I have talked to so many guys who think its free money and they dont have to pay it back. The hammer will come down in another year from now…Just be mindful.
To that effect, I have sort of a “hypothetical” question:
They say the EIDL can be used to repay debt obligations that would have been met if not for the pandemic.
On the flip side, they say it cannot be used to consolidate or refinance existing debt.
So say someone has a business credit card that they were planning on paying off at the start of busy season. But “busy season” is delayed 2 months because of the pandemic.
They receive the EIDL advance and use it to pay off the credit card. Will that be viewed as “refinancing” a high interest debt, or simply repaying an obligation that would’ve been met if not for the pandemic?
That would depend if they class the 10k as a grant, subsidy or a loan. A loan by general definition you have to pay back. Grants are sums that usually do not have to be repaid but are to be used for defined purposes. I would call paying off a credit card with a “loan” leveraging so it kind of is consolidating. Don’t take my word for it though, I wash houses lol.
For PPP application through Chase, you have to certify the statement: "The Applicant was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC. "
For solo owner-operators that did not have employees or contractors helping them in 2019, this statement may disqualify them. Other banks may do it differently, but for Chase, this is in there. Just thought I’d share as I stopped the application when I reached this point and realized Chase’s interpretation of this program means I, for one, do not qualify for this particular program at this time.
Are you not the sole owner/employee? Don’t you pay your own salary? I would contact Chase.
As far as I can tell, sole proprietorships are eligible. I would go forward with the application. There’s a possibility you may have to wait until 4/10, though.