Just spoke with our accountant. She said not to worry about where the payroll money actually comes from, but that we just want to make sure we use all the money in the next 8 weeks. There were some other comments about adding special payroll dates and spreadsheets, but she said they will handle all that.
Still nothing for us. Our banker told us 6200 apps were being pushed through as I type this and I should find out soon if ours was enclosed. Day number 16 for us. Bright side is we opened today and have customers.
One question I have, that I still haven't seen a clear answer on is if state tax withholding is included in the forgivable amount.
To be fair he is texting me like crazy keeping me in the loop. They are just a big southern bank and he wasn’t out main underwriter. So little he can really do. But I’ve still heard nothing.
I feel like I need to go this route but after looking on the SBA website weeks ago for local banks it only populated one and I still haven’t heard back from them. What other options are there?
Check the SBA website again, there's like a 500+ page list of every bank doing PPP loans in the country. Also, you don't have to use a "local" bank, just one that is chartered in your state. Could even go with PayPal or Quicken
EIDL program is going absolutely nowhere but no one in the government or media seems to give a fuck about it
Looks like we are going to get approved today thank god. Still no email but that’s what we were just told.
State tax withholdings are irrelevant to the forgiveness since that’s an employee withholding and the forgiveness is based on gross wages.
It wasn’t provided much additional funding as part of the CARES Act, and then once the CARES Act was passed it completely fumbled and failed to live up to the statutory requirement to make payments within 3 days. As far as I am aware, it’s still unable to make advances within 3 days. Why should people place their faith in it when that time can be better spent doing something else? ETA: My point is that the existing EIDL program was given an easy task (compared to 7(a)) and it completely failed. I also question whether the media can differentiate between the two.
I wish there was another program to focus my energy on but eidl fits my company way more as labor is a tiny expense for us. Therefore the PPP is pretty much worthless.
Yeah that’s definitely the case for a lot of businesses. more money went to PPP though because it essentially used businesses as a conduit to put money in the hands of workers. It’s primary purpose was to pay workers, and a secondary benefit was keeping businesses afloat. You’re asking for a business bailout. Join us in the Trump thread, komrade
Even if you don’t have lots of labor to forgive, ppp has to have some value for the rent, any labor, and utilities that you get granted, no?
Setup to show I make 10k/year. Vast majority of pay, which is minimal comes from distributions. As a fairly new business, my brother and I have reinvested virtually everything into the business.
Yes, I was thinking about this the other day. When they changed the tax laws we considered adjusting our comp downward. Glad we didn't. At a certain point I think this is going to get looked at for sure.
just got this email from the sba Important Information from Small Business Administration (SBA) - Your EIDL Application Dear Applicant, We understand the challenges your business is facing due to the massive disruption caused by the Coronavirus (COVID-19) pandemic. You are receiving this message as a notification that your Economic Injury Disaster Loan (EIDL) application is currently being processed in the order it was received. You will receive an email notification when there is a change to your application status. Without question, COVID-19 has caused an extraordinary impact on our nation's small businesses, and the demand for emergency working capital provided by the EIDL program is at historic levels. The SBA is processing applications from small businesses and private non-profit organizations across the country as quickly as possible. We thank you for your patience and understanding as we work to assist as many applicants as possible. Additional information on available resources to assist your business during the effects of COVID-19 may be found online at www.sba.gov/coronavirus.
Sounds like the eidl processing is picking up in a big way but supposedly they are now limited to a 150k max.
How many employees do you have? My roommate has 2 small businesses, and both just got the grant deposited yesterday. his school is a 1 employee biz and he got $1k, and his other is 2 employees and he got 2k
oh i’m aware of that. i already got funded for PPP i applied for EIDL too because we literally shut our doors for 30 days. $4k ain’t going to do shit
Signing paperwork tomorrow afternoon for my two big ppp’s. 4-4 now. Was almost suicidal for a day when the bank made it sound like it was up in the air. Can pretty much start back rolling again over the next 2 weeks.
No the loan if you applied for it should come later. At least that was my understanding, they were going to try and handle the grants first.
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Houndster DUCKMOUTH others working on PPP any thoughts on whether “owner compensation replacement” (from 2019 form 1040 schedule c line 31) counts towards the 75% payroll costs requirement? Technical reading of the current regs says it does not, but that seems at odds with congressional intent. Client owns a SMLLC with 4 employees currently, but got a loan (before the self employed/sole proprietor regs were released) based on payroll costs for 6-7 employees last year. Client owner is not an employee and doesn’t take a salary, so having trouble getting over 75% payroll cost hurdle for forgiveness purposes unless the “owner compensation replacement” can count towards it. ETA: under the statutory definition of payroll costs, it clearly qualifies but the SBA has added this non-statutory 75% rule and bastardized the definition of payroll costs.
Agreed, but how does that interact with the 75% payroll cost rule? If that hurdle can’t be overcome, then there will be a reduction in the total amount forgivable, at least according to current guidance
Do you have a cite? Client’s CPA is saying otherwise. I agree with you but can’t find anything saying as much. Except the statute of course, but it’s clear the statute doesn’t always control here
I imagine it’ll be clarified in future forgiveness regs, but that doesn’t help me solidify my position before a call tomorrow
I am a CPA too and I am certain it counts as payroll costs. I am definitely not going to look up any regs at this hour. If I were you I would advise your client it is intended to cover self-employed compensation, which is form of payroll, but everything is constantly evolving around the PPP loan program. paragraph f ii highlighted above covers the self employment income
Thanks. The issue is that i and ii of paragraph f differentiate between payroll costs and owner comp, and then the last sentence in the middle column clearly says 75% of the forgivable amount must be used for payroll costs. Thus, based on the fact they are clearly distinguishing the two, the regs say payroll costs do not include owner comp. So my client who can’t otherwise satisfy the 75% rule may have the total amount forgivable subject to reduction. Pretty sure my advice and your advice that “this reg is inconsistent with the statute and congressional intent and is likely to be clarified by future forgiveness regs” is true, but, if possible, I’d like to put the issue to bed now with some kind of citation to some kind authority. I don’t think there is one, but was hoping to be proven wrong.