If y’all haven’t figured it out by now I am a commercial banker. I have close to 100 clients approved and most funded. I’m still loading apps today with the hopes it opens back up I agree orange jello it’s a bank issue though.
Sorry to hear this. Hopefully they have you teed up and ready to go immediately when/if it open backs up
Good article on the eidl and its importance. IMO feds should have just adopted the eidl program and let the banks administrate that rather than the PPP. https://www.thedailybeast.com/five-million-people-need-this-lifeline-but-its-gone-broke?ref=home
https://apple.news/Ado_PJ4vQSr6UAwlYgqplNQ I really need to break away from them but having to switch all my info around doesn’t tickle my fancy
not a bad recap, although some parts are confusing. insinuates that if you maintain your amount of employees and the total payroll, the whole thing will be forgiven regardless https://www.nutter.com/trending-new...eps-calculator-determine-forgiveness-ppp-loan
So we signed our document on Saturday and are awaiting funding. On Sunday I had my credit checked by the SBA. It would seem weird to me for that to happen after we signed. I am thinking it may be $10K EIDL related. Anyone know?
FWIW my credit was checked by the sba on Thursday, today I received a pending status on the EIDL grant.
Been trying to apply since it opened. I serve extremely impovrshed areas. Can't even get to the place to create my account. You making any headway?
No, got through once to the "login" page, but when I tried to click the register link, got the same overload error.
Got EIDL monies for two LLC entities today. Unfortunately I did not get PPP for them due to lack of money, but my banker says I'm first in line for when the next stimulus drops. My partner and I both recieved our scorp paperwork today to sign, so that's nice.
Does anyone know exactly how firing an employee impacts the PPP program. I have an employee that I hired in December, I really really need to fire him but don't want to negatively impact our forgiveness. The language in the program isn't really clear to me how this case would impact me since he doesn't make a lot and was only hired 5 months ago. This is the language: If you cut headcount the forgiveness will be reduced by the difference in average headcount. The comparison is with headcount between 2/15/19 and 6/30/19 OR 1/1/2020 and 2/29/2020 (at your choosing).
There’s two look-back periods for average FTEs: 1. 02/15/2019 - 06/30/2019 2. 01/01/2020 - 02/29/2020 You need maintain 75% of your average FTEs over the 8-week period (and through June 30th if the 8-weeks are over before then) after your loan is funded. You get to use the lower amount of those two look-back periods. A simple example: Average 20 FTEs from 02/15/19 - 06/30/19 Average 25 FTEs from 01/01/20 - 02/29/20 Loan is funded today (04/20/20) - you’ll need to average 15 FTEs from now through June 30th or the forgiveness portion is limited.
The government to small business owners right now: Hey small business owner! We're here to help you through these difficult times. Please follow the link below to apply for loan and grant programs! Spoiler
nothing theoretically changes just a different way of tracking a interest rate or how much tax you goota pay , .
The statutory language is unclear to a lot of folks. It's something that will be clarified by SBA regulation. Until then, a conservative approach would be to assume that the $ amount of forgiveness is proportionally reduced for each employee you fire. So if you have 10 employees on 2/15 and fire the guy (and no one else), then 10% of your loan amount would be unforgivable. An aggressive approach is the one Houndster recommended and provides that you can fire 25% of your workforce. I don't see a statutory basis for the 25% and it undermines the statutory intent, but the statute does direct the SBA to provide for a de minimis exception in the regulations (i.e., there will likely be some wiggle room for firings). 25% seems to be a pretty high number, and if I had to guess it'll be formula driven based on % employees (so that relative headcount of big and small companies are taken into account). FWIW I'm looking at a pretty good forgiveness calculator put out by a prominent CPA firm and it does not allow the firing of 25% of employees.
They are still working on my application. I was given a new email today asking for another piece of info to complete the application. My hope is they fund this shit one more time and I get funded. Just a nervous waiting game now.
Thats awesome. SunTrust has gone radio silent. My lab business is creeping very slowly. Going to be down probably close to 60% this month. And if I don't get, some of the loans come through for this business, Im going to start layoffs. The other business, just signed a deal with a company that supplies self COVID-19 tests. Almost like a diabetes test kit.
this write up and calculator is applying it as a ratio loan amount x (average FTE over 8 week forgiveness period / average FTE over previously designated period) gives you an adjusted forgiveness amount to work from
if they’re take home tests, i can sell them from the clinic and people can drive up and we’ll put them in their trunk
Sorry to hear that. I wish you luck! This loan came at the perfect time for us. We had $100k in the bank plus receivables. Friday payroll is $250k and we were looking light the next month or so. We have a bunch of payments coming in during May/June, and with the loan should get us to November, so this puts us in pretty good shape. Haven’t laid off anyone and no plans to.
What I am questioning is where Houndster said "You need maintain 75% of your average FTEs over the 8-week period." The link you sent does not include the "75%" standard; instead, it implicitly says 100%, which is what the statute says. ETA: I'm busy and not being very clear. Your forgiveness amount calc also implies 100% employee retention or or else the forgivable amount is reduced. What Houndster said above is that unless average FTE headcount over the 8 week period drops below 75% of the prior period, then you will not have the forgivable amount reduced. That 75% number is not in the statute nor any regulation I have seen. It also seems to be at odds with congressional intent since it allows you to fire 24% of your workforce and still have the debt forgiven. That is a very aggressive position IMO
Yeah if I get the loans, the lab will be fine, depending on when the world opens up again. But I have 3 people that each have a hours worth of work a day and I pay them the 8 hours no matter what. Very blah and very annoyed with the banking system and this whole process.
Yes, that sucks. Let me know about the tests also. Trying to stock up on stuff for work. Not sure what volume you would sell them at but interested.
Hmm I’ll double check with the people that put together our forgiveness calculator and see where they got the 75% from. I looked at Section 1106 and it reads as 100% retention to me. I apologize if I gave you bad info Russellin4885
Would I still be able to use 2/15/19 - 6/30/19 as a look back period? If that’s the case I had less employees then so I would be safe. I don’t want to fire anyone right now but this guy has basically made it impossible not to.
So I have 4 employees for one entity and 1 employee is going to be out on disability from a tornado hitting her house and damaging her right arm last week. Everyone will be rehired soon but she will be out on short term disability and technically off my payroll for the next 8 weeks. Am I looking at returning her salary to the PPP program to make the forgiveness for the rest correct?
Personal questions: Have they clarified how to calculate full time equivalents. Is it the total hours worked divided by forty if everyone is hourly. My entity is a single member LLC. I don’t get a W-2 and all of my income is passed through as a member distribution. I have schedule C income of over 100k from last year but I was not open until April of last year. So they are using my Jan to Feb payroll of 2020 to calculate the loan but are not using the schedule C from last year to include what I pay myself. I did write myself a check each month for a member distribution but they won’t count that. So how do I get myself included in the calculation.
Seems like the would have to use your schedule c and net it out to 100k and throw that in with your empyees. Your saying you can't do that? That's what our original plan was but we actually filed PPP through our s corps in addition to the llcs.
They aren’t letting me use my schedule C from my 2019 returns and combine it with payroll from 2020. Talked with my accountant and he says just to use my P&L to get my net income for January and February to get an average. The banker and and my accountant actually have a very good relationship so he is going to make a call in the morning and see if they can’t work it out.