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SBA Resources? Anyone Been Thru This?
Posted by: chopper
Date: June 23, 2020 11:36AM
My business was hanging on quite well in this new "paused" economy.

Until last night when our biggest client informed us that they are no longer in a position to uphold our agreement for the rest of the year.

We (an LLC) are going to take a major hit. Has anyone been thru the available programs and know where we should apply and what for?

I called the SBA and they suggested applying for PPP but ... we really don't get a paycheck per se ...

Suggestions welcome. Writing on 0 sleep. Sorry for rambling non coherent.
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Re: SBA Resources? Anyone Been Thru This?
Posted by: neophyte
Date: June 23, 2020 12:14PM
Have you contacted your local SCORE chapter? They often have a database of people who are well versed in small business problems and solutions. At no charge to you.
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Re: SBA Resources? Anyone Been Thru This?
Posted by: Racer X
Date: June 23, 2020 12:44PM
I did the PPP for a sole proprietorship. If you do regular "draws" that is your pay. You have a week left to file for PPP, so get on it FAST! [www.sba.gov]



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Edited 1 time(s). Last edit at 06/23/2020 12:47PM by Racer X.
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Re: SBA Resources? Anyone Been Thru This?
Posted by: graylocks
Date: June 23, 2020 12:49PM
as an independent contractor i was able to get a Economic Injury Disaster Loan (EIDL) grant which does not have to be paid back. the grant is $1K per employee up to $10K.

i applied in March and got it, much to my surprise, a few weeks later. they ran out of funds for awhile but reopened it June 15. The paperwork is brain dead easy. takes about 7 minutes. no forms to upload at all. i'm not applying for a loan though that is the next step and I hear the loan rates are extremely favorable.


EIDL



"Success isn't about how much money you make. It is about the difference you make in people's lives."--Michelle Obama



Edited 1 time(s). Last edit at 06/23/2020 12:50PM by graylocks.
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Re: SBA Resources? Anyone Been Thru This?
Posted by: numbered
Date: June 23, 2020 12:54PM
There is still PPP money available.

The requirements have changed so many times--mostly for the better--that it is hard to make a general statement about availability. However, the key idea is that you can get a loan of 2.5 times your 2 month payroll, plus some credit for rent and utilities.

However, as an LLC, if you are not using a payroll to distribute your income--I presume using a partnership model?--it could be hard to meet the requirements of the forms.

The financial institutions get a payment for making the loans so they are willing to work with you. In the second round of funding the House insisted on a separate fund to be used by community development banks and credit unions. This proved to be easier to get and more accessible than using Citibank (I wonder why?) If you use a credit union or a small local bank, try them.

If you get money, you then have to prove you used the funds for paying people (instead of pocketing the money and firing people.) With proof, the loan is forgiven. Again, the question of payroll versus partnership could be an issue.

Good luck.
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Re: SBA Resources? Anyone Been Thru This?
Posted by: jdc
Date: June 23, 2020 01:14PM
Think I read that 80% of PPP money will never get where it needs to go to cause its too hard to figure out how to get it.

Im also self emplyed but no regular draw and not a LLC. they tell me I can apply, but business has been good... so dont *think* i need it.

But woulnt mide applying, getting whatever money it is -- even if I never used it an paid it back later.



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: SBA Resources? Anyone Been Thru This?
Posted by: Gareth
Date: June 23, 2020 01:20PM
PPP - 2.5 times your average monthly payroll - supposed to be W2 payroll. I can't speak to whether it can apply to owner draws (I didn't think it did - at least not for forgiveness). The goal of the PPP is to keep employees employed (so they don't go on unemployment). There is now a 24 week time period to spend the funds on employees and expenses (but owners can only pay themselves for 8 weeks with PPP funds).

PPP Forgiveness - At least 60% needs to be spent on payroll in order to be forgiven. The remaining 40% can also be spent on payroll or other eligible business expenses and can be forgiven (i.e. rent, utilities). Payroll expenses can also include employee healthcare and retirement contributions (but not for owners!). Any amount not forgiven turns into a 2 year loan at 1%.

EIDL Grant - $1,000 per W2 employee, up to $10k. Automatically forgiven, but it is deducted from the PPP forgiveness amount if you have both.

EIDL - I have no idea what the amounts are. Last I heard it was 50% of previous 12 months of business income (up to 250k), but the amounts seem random now. My wife got 100% of 12 months income as an independent landlord. I got about 38% of 12 months income. NOT FORGIVEABLE. 30 years @ 3.75% with no payments for 12 months. It was limited to agricultural businesses when I applied, but they held onto my application and processed it last week.



Edited 1 time(s). Last edit at 06/23/2020 01:25PM by Gareth.
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Re: SBA Resources? Anyone Been Thru This?
Posted by: graylocks
Date: June 23, 2020 02:54PM
EIDL Grant - $1,000 per W2 employee, up to $10k. Automatically forgiven, but it is deducted from the PPP forgiveness amount if you have both.

i got the EIDL Grant for myself as an Independent Contractor.



"Success isn't about how much money you make. It is about the difference you make in people's lives."--Michelle Obama
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Re: SBA Resources? Anyone Been Thru This?
Posted by: Gareth
Date: June 23, 2020 03:33PM
Some PPP updates (we have a weekly industry call with a banker):

6/30 is the last day to get a PPP application number (not sure if that means you can apply on 6/30 or if it needs to be funded by 6/30). But there is still money left. Consider using an online vendor for faster funding (i.e. Kabbage). After 6/30, another stimulus package will need to be passed in order to apply.

There is an easy form and a long (hard) form to use for forgiveness.

For loans funded after 6/5, the term is extended to 5 years (up from 2). Loans from before 6/5 can request these terms from their bank. 10 month deferral (up from 6) for first payment (I believe this starts from when your forgiveness application is approved or denied?).

If using the 24 week timeframe, owners can now spend up to $20,823 or 20.83% of 2019 payroll (whichever is less) on their own payroll for forgiveness (this is up from the $15k max or 8 weeks of 2019 payroll, whichever is less, in the 8 week timeframe). Employees are bumped up to a maximum forgiveness of $46k/each if using the 24 week timeframe.
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Re: SBA Resources? Anyone Been Thru This?
Posted by: jdc
Date: June 23, 2020 04:09PM
Still dunno how it works for a self employeed person that doenst take normal draws.

We use my business account for whatever. Amazon, target and ATT auto draw from it. Mortage gets paid from it. Sometimes I pull $$ to put in our personal account.

But no clear usage.

ugh... just dont know



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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Re: SBA Resources? Anyone Been Thru This?
Posted by: PeterW
Date: June 23, 2020 04:56PM
Simple enough - what do you pay taxes on?

Btw, consider yourself lucky not buying one of those Amazon “external hard drives”. My 2tb arrived yesterday, formatted it and got 7-10 MB/S via Black Magic. Essentially a 2TB SDHC card but at least it doesn’t heat up. Went back this morning.
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Re: SBA Resources? Anyone Been Thru This?
Posted by: jdc
Date: June 23, 2020 06:46PM
Quote
PeterW
Simple enough - what do you pay taxes on?

Btw, consider yourself lucky not buying one of those Amazon “external hard drives”. My 2tb arrived yesterday, formatted it and got 7-10 MB/S via Black Magic. Essentially a 2TB SDHC card but at least it doesn’t heat up. Went back this morning.

thanks for taking one for the team. =)



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Edited 999 time(s). Last edit at 12:08PM by jdc.
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