Yes, they took the average monthly payroll for 3/2019-2/2020, and multiplied by 2.5.
It kinda sucked because we made the decision this past December to take a larger distribution to carry us through the winter months, and paid ourselves very little in salary in January and February.
Did you have any luck with the other part of the SBA grant?
I used the abbreviated EIDL application shortly after it went online. Have still not heard anything back. I think I may have bungled it by putting down the wrong âestablishedâ date, though.
Anyone hear back on their EIDL loan from the SBA?
I just got the notice 2 weeks ago saying I was approved and then had to accept the amount they offered, this was after nearly 2 months of hearing nothing. I accepted the loan amount and yesterday got the paperwork to sign. Weâll see how long it takes to fund the loan.
So the EIDL can only be used for certain things, payroll being one. I have to figure out how much to pay myself for the months with zero work and then the rest is going to equipment, truck wrap and advertisement. I may look at selling my truck to my business as well for the added deductions at the end of the year.
Most people are reporting being funded about 3-4 days after signing their online paperwork.
Talk to your CPA about the +/-âs to what youâre thinking of doing.
I donât think the EIDL is meant for major purchases (anything you would depreciate), but rather supplies and such. Also not meant for refinancing long term debt. But a credit card that wouldâve been paid off in the normal course of business should be ok.
I talked with my CPA regarding this and he said there is so much âgraffiti on the wallâ regarding this bill itâs hard to decipher everything as it is brand new.
I called the local SBA office here in Omaha and they werenât any help and told me to call the hotline for the EIDL loan. First lady I talked with didnât seem to confident in her answers so she elevated my call up to someone else. The questions I asked with answers:
Can a sole proprietor LLC use the funds for payroll?
Guy said I could pay myself a reasonable wage during the time of this pandemic. But I needed to show where the money went. He suggested a spreadsheet, which to me really doesnât show anything. After the call I talked with my CPA again and I suggested we do a 1099-MISC for the payroll from my business, The Pressure Is On, LLC, to myself and submit that for when they need documentation of where the money went. As far as reasonable wage, I will use all the payments I made during the first quarter of the calendar year and divide that by 3 since all this crap started in March and that is when I stopped working. This actually works in my favor since Hy-Vee had me come out to clean out of schedule. My CPA said I should be able to show how much I made during those months which shouldnât be hard since everything is tracked on Joist Pro for the exception of my Hy-Vee contract but I have checks from them to show that income as well.
Can the EIDL be used for buying equipment?
First person I talked to said I couldnât use it on equipment. The second person I talked to said I could use it on equipment as it would fall in the âAccounts Payableâ portion. After talking with my CPA he wasnât so sure on that.
I use x% of my house for business purposes that I claimed on last years taxes, can I pay x% of my mortgage with the EIDL?
Both people said I could but they didnât sound extremely confident in the way they answered.
I plan on calling back a couple of times to get as much information as I can from the different people that should know how this should/can be used. If I hear anything different Iâll post it up here.
