Small Business Thread - Advice for Navigating Covid-19

Discussion in 'The Mainboard' started by dallasdawg, Mar 18, 2020.

  1. NYGator

    NYGator Well-Known Member
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    Exact same issue. We changed to a PEO in June. We submitted for forgiveness a month ago and just found out our bank sent us an email asking us to provide one payroll service info instead of two, but it went to junk mail. So dumb that they couldn't figure it out that the payroll could be from two different payroll companies.
     
  2. Frankie Carbone

    Frankie Carbone eh che se dice
    Florida State SeminolesNew York YankeesNew York KnicksOrlando CityLazioUnited States Men's National Soccer Team

    Wells Fargo client checking in. Still no application in place to apply

    They did send an email out in error saying first payment is due 12/7
     
  3. Houndster

    Houndster Well-Known Member
    Donor TMB OG

    I think the AICPA and other lobbies will get it changed
     
    NoNatty likes this.
  4. DAT.ass

    DAT.ass Black Mamba!!!
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    looks like 2nd round of PPP is in this next Stimulus package. I thought for sure it would just still be for first timers.

    Just had PayPal finish my application and they “suggested” full forgiveness, and that is now sent off to SBA for final approval. I imagine the SBA just takes the suggestions and doesn’t dig in too deep since they have millions of these applications to go through. Hopefully they can finalize this before the end of the year, and it’s not necessary going to make me a weaker candidate for the 2nd PPP if I haven’t officially been fully forgiven by the SBA.
     
  5. Houndster

    Houndster Well-Known Member
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    It’s basically automatic if you’re under the $2 million combined threshold
     
  6. NYGator

    NYGator Well-Known Member
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    So it looks like if you had any quarter in 2020 that was 25% or more worse than the prior year in that quarter than you would again qualify for a very similar (slightly better) PPP loan for this year in this round of the new bill provided that the White House doesn't veto.
     
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  7. Russellin4885

    Russellin4885 Well-Known Member
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    North Carolina State Wolfpack

    damn, one of my businesses lost 21.07% in 2nd quarter and 21.18% in 3rd.
     
  8. Jake Scott

    Jake Scott Well-Known Member
    Staff Donor
    Jacksonville Jaguars

    Random bump/question

    Would any of you business owners be willing to chat with me about a startup?
     
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  9. wheyum

    wheyum Well-Known Member
    Donor

    I'd be willing to chat.
    Have a small niche construction company. Also in the process of starting a roofing company currently.
    Currently trying to get Auto insurance for a trailer and HNOA for the company without having to purchase a vehicle first... FUN

    I'm looking to make a novelty product this year too. I really dont know anyhting about retail (online sales). Anyone have expertise there?
     
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  10. NoNatty

    NoNatty Keyboard Cowboy
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    I would be happy to answer any questions but I’m not sure how helpful I would be since I’m in the healthcare/legal field.
     
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  11. Room 15

    Room 15 Mi equipo esta Los Tigres
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    what industry?
     
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  12. Whammy

    Whammy Donde es
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    Alabama Crimson TideVanderbilt CommodoresNew Orleans SaintsChicago BlackhawksAtlanta United

    Bootstrapped a storage, warehouse, and logistics startup in Atlanta. Happy to chat, on the revenue / marketing side which is where my expertise lies
     
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  13. Darko the Snowman

    Darko the Snowman Crushing blow for AU. It's Georgia.
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    What do you have in mind?
     
  14. Jake Scott

    Jake Scott Well-Known Member
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    Jacksonville Jaguars

    Nothing fancy. It's for my brother.
     
  15. Mix

    Mix I own a Fuddruckers with Scottie Pippen
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    UCF KnightsPittsburgh PenguinsOrlando CityPittsburgh Steelers

    I'm about to lease me a nice warehouse and start doing some regional shipping. I probably should reach out to you.
     
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  16. Russellin4885

    Russellin4885 Well-Known Member
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    North Carolina State Wolfpack

    Don't know if I would say I have expertise but one of my jobs is I help run a family retail shop.
     
  17. Whammy

    Whammy Donde es
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    Feel free - you’re in Orlando yes? We’re standing up a warehouse in Tampa or Lakeland sometime in Q2
     
  18. colonel_forbin

    colonel_forbin Well-Known Member
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    Would the first round of PPP received in 2020 factor into the equation when comparing to 2019 revenue. Like if I made $5 in in Q2 2019, and $5 in Q2 2020, but $2 of that was from PPP-1, would I still be eligible?
     
  19. NYGator

    NYGator Well-Known Member
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    PPP does not count as revenues. It is excluded from the 25% quarterly calculation. My understanding is that even for tax or accounting purposes it will not be counted as revenue.
     
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  20. AptosDuck

    AptosDuck Pedantic Hausfrau
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    California Golden Bears

    This letter is to inform you that we have been notified by the U.S. Small Business Administration regarding your Forgiveness Application. Congratulations! The SBA has issued a judgement of full forgiveness for your PPP Loan. This means that no interest, fees, or principal amounts are due to *********** Bank.

    Pleasant surprise since, based on the initial rules at time of application (April), I calculated that we would have to pay back about 25% of it
     
  21. NoNatty

    NoNatty Keyboard Cowboy
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    when did you apply for forgiveness?
     
  22. AptosDuck

    AptosDuck Pedantic Hausfrau
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    California Golden Bears

    Bank passed on instructions in late October, but we didn't get around to submitting anything until early December. Bank got back to us a few days later asking for some supplemental documents, and once we gave them a Q3 941 they said they'd take care of everything else. Their letter to us that I quoted was dated 12/29, so it all got done within three weeks.
     
  23. NoNatty

    NoNatty Keyboard Cowboy
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    bank?

    Ours was “approved” by chase on 12/20. Still haven’t heard back.
     
  24. AptosDuck

    AptosDuck Pedantic Hausfrau
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    California Golden Bears

    We'd tried to go through Wells Fargo in April, ended up going with a local bank. Loan was approved mid-April, funded late April. So when the bank set up a portal for submitting documents in October for forgiveness, we gave them payroll, health insurance, rent and utilities for May, June and July. Bank came back a few days later (maybe around 12/10) and asked for 3Q 941 for some reason, so we gave it to them. They said thanks, we'll take it from here, which I assumed meant that they'd put everything together and submit it to the SBA. Next thing we know we get that letter dated 12/29 saying loan completely forgiven. If Chase told you 12/20 something along the lines of what our bank told us ten days earlier, then perhaps your good news is just around the corner.

    It may also have helped that our business finances are ridiculously simple and straightforward. Come tax time our accountant says it's the easiest money she makes all season.
     
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  25. NoNatty

    NoNatty Keyboard Cowboy
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    Just got the email from Chase saying our PPP forgiveness request was approved.

    I wish there were more things like this. We originally thought we would need it to address reduced business but in the end it allowed us to hire two new employees.
     
    buy_dont_lease likes this.
  26. Houndster

    Houndster Well-Known Member
    Donor TMB OG

    Second round opens up next week if you’re still struggling.
     
  27. Chipper>Jeter

    Chipper>Jeter Defund the NCAA
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    Okay non Covid related question. I'm having issues with staff using the office computer here for personal stuff and its fucking up the computer. Anybody have any suggestions for something I could do to block sports, gaming, personal sites, etc? Its a shared computer that they needs access to but only for excel files, word, and store email.
     
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  28. NYGator

    NYGator Well-Known Member
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    I hope everyone who qualifies is taking advantage of the revised Employee Retention Tax Credit provision of CARES. In the new bill you can claim both ERCT and PPP provided you do not use the same salaries for forgiveness and that you have a minimum drop of 20% revenues in any quarter versus 2019. This is a change from the original bill where you could only claim one or the other. You will receive either a tax credit or direct cash payment at a rate of 70% of 10K paid to each employee on staff during that time period, so $7000 per employee. You can also claim it in as many quarters as you are down 20% compared to the comparable quarter in 2019. Really good stuff.

    You can also retroactively claim it on some level for 2020, but the payback is only at 50% and it required a 50% drop in any quarter compared to 2019 to start claiming it and it ends when you are within 20% (I think). Worth chatting with your financial advisers as this was significant found money for my company and as a result we are beefing up our hiring (intention of the bill). We look to hire 15 people in the next 6 months.

    This provision also applies if you had to shut down for a certain period of time.
     
  29. Frankie Carbone

    Frankie Carbone eh che se dice
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    Unfortunately, if you’re the business owner and only have 1 employee (yourself) you don’t qualify :(
     
  30. AptosDuck

    AptosDuck Pedantic Hausfrau
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    California Golden Bears

    SOUNDS COMPLICATED

    Our accountant advised in late Feb. that we look into it, but an initial recon into the numbers suggested that it's not in the cards for us. However, during the recon into the numbers we found that we were in fact eligible for PPP Round 2, which we applied for in early March and received two weeks ago
     
    NYGator likes this.
  31. NYGator

    NYGator Well-Known Member
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    It's actually not. Much less complicated than PPP.

    If your revenues declined in Q1 2021 versus Q1 2019 by 20% or more you are in fact eligible for it. Same thing for any quarter going forward this year against the comparable quarter in 2019. The rules were not clear until the beginning of March, so you may want to go back and rereview based on Q1 results of course. The issue is that prior to the revision you could not do both PPP and ERTC together. You now can.
     
  32. AptosDuck

    AptosDuck Pedantic Hausfrau
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    California Golden Bears

    Weird, since we found PPP to be extremely straightforward. Turns out we had a 37% drop in revenue from Q2 2019 to Q2 2020, and boom we were eligible for Round 2. We figure we'll do exactly what we did in Round 1 and get full loan forgiveness again.

    I think the accountant was hinting to us to "take a good look at your revenues" in Q1 2021 compared to Q1 2020 to see if we qualify. Unfortunately, it seems the business is doing too well for that.
     
  33. NYGator

    NYGator Well-Known Member
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    It’s 2021 Q1 against 2019 Q1 and only requires a 20% drop, which on a specific quarter basis may be more achievable even if things have improved.
     
  34. AptosDuck

    AptosDuck Pedantic Hausfrau
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    California Golden Bears

    Yeah I get that and that makes more sense but that's what she was telling us in February, and she admitted that it might turn out to be different because the details hadn't been finalized yet

    Like I said the business is doing too well anyway, oh darn
     
  35. NoNatty

    NoNatty Keyboard Cowboy
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    I want more free government money.
     
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  36. Russellin4885

    Russellin4885 Well-Known Member
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    North Carolina State Wolfpack

    How was that missed initially? That's a pretty sizable drop. Main reason for asking is one of my companies lost 23% for second quarter and 24% for 3rd quarter so didn't think I qualified but maybe I could have done something to change that?
     
  37. Mix

    Mix I own a Fuddruckers with Scottie Pippen
    Staff Donor TMB OG
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    Might take the EIDL increase. That plus the Restaurant money and could have massive cash on hand for us to grow with.
     
  38. AptosDuck

    AptosDuck Pedantic Hausfrau
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    California Golden Bears

    We were aware of the drop; we were unaware of the specific PPP2 eligibility requirements

    Our short-term revenue fluctuates normally due to the nature of the business (but not quite as much as it did in that quarter), so we tend to prioritize yearly revenue numbers, not monthly or quarterly
     
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  39. FadeMe

    FadeMe Well-Known Member
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    Auburn TigersAtlanta BravesAtlanta United

    Couldn’t find a better place to put this. Hopefully someone has some insight.

    I just had an LLC transferred to me. It’s a multi-member LLC where I own 99% and another entity owns 1%. I had the 99% transferred to me. It is filed as a partnership. Do I need to obtain a new EIN or can I have the EIN transferred to me with a responsible party change form?
     
  40. Oranjello

    Oranjello Well-Known Member
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    If you're continuing the LLC's historical business, you most likely don't need a new EIN and can simply file the form to update the responsible party. On the other hand, there may be some benefits from getting a new EIN you may want to discuss with a CPA.

    Either way, based on the way you phrased the post ("had an LLC transferred to me") it sounds like you may potentially be in for some tax surprises depending on the LLC's historic activity if that type of planning hasn't taken place. Calling a CPA before 12/31 may help you avoid a headache in the future.
     
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  41. FadeMe

    FadeMe Well-Known Member
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    That’s probably poor phrasing on my part. Im going into business with a friend who owns a construction business and does partnerships in other territories. I’m starting/taking over a business in a territory that was established never actually used. This LLC was established in 2016, but it was never actually operated in any capacity (never did any work or made any money). It dissolved in 2018. We just finalized the paperwork last week to reinstate it and had it approved by the state today.
     
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  42. Oranjello

    Oranjello Well-Known Member
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    Wait until January and then get a new EIN
     
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  43. Room 15

    Room 15 Mi equipo esta Los Tigres
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    I have email through my webhost, and of course the UX for their inbox sucks. I'm about to dig in on options, but does anyone have business email services that they absolutely love? I want to be able to manage the email address with my domain of course.
     
  44. NYGator

    NYGator Well-Known Member
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    we use google for almost everything. We have our own domain that uses gmail enterprise on the backend. It’s great.
     
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  45. Daddy Rabbit

    Daddy Rabbit obviously silly and not productive
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    :bananallama:


    Opening my own firm/practice or going to attempt to do it. Looks like I am going the independent contractor route as I picked up a small 1099 contract from another firm. Trying to come up with a domain and name.I have no idea what package on GoDaddy meets my needs. Starting small and see where it goes.
     
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  46. Boo MFer!

    Boo MFer! No longer a cog in some powerhouse machine
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    Is Nandor the Relentless designing the logo?
     
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  47. Daddy Rabbit

    Daddy Rabbit obviously silly and not productive
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    Corky Bucek and Boo MFer! like this.
  48. Boo MFer!

    Boo MFer! No longer a cog in some powerhouse machine
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    Real talk though, I have an S-corp and used Squarespace for my website. I bought my domain through Squarespace and it allowed me to incorporate custom emails with my domain that work with Outlook. The process was very easy and inexpensive.
     
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  49. Shawn Hunter

    Shawn Hunter Vote Corey Matthews for Congress
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    Well this is news to me. I can also do marketing, PR, and social media, depending on what the business is. I wouldn't be much good if it's something I know jack shit about.
     
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  50. Boo MFer!

    Boo MFer! No longer a cog in some powerhouse machine
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    Bad news. The business is about getting girls, Shawn.