Covid-19 SBA grant application

18460 Views 202 Replies 23 Participants Last post by m_ice, 14 d ago

seville009

Discussion Starter · Apr 4, 2020

This is a link to the online application for $10,000 Federal/SBA loan program; the loan is a grant that does not have to be repaid

have not gone through the application myself; looked it up for someone else and am just passing it along

https://covid19relief.sba.gov/#/

Reactions: 2

1 - 20 of 203 Posts

tynsmyth1

· #2 · Apr 4, 2020

My accountant had me fill the app out this morning. She deals with a lot of contractors and knows that even though many of us fell into the essential category we are operating at about 20% if that. She also had me fill out a payroll app with BofA that would provide payroll money to keep employees working. It is supposed to be used for payroll but can be used for certain other expenses if necessary. If used for payroll it is forgiven and not required to be repaid. If used for other expenses it is repaid at one percent interest. Those r the broad strokes

Reactions: 1

tynsmyth1

· #3 · Apr 4, 2020

My sincere hope that everyone is surviving this disaster and does not fall victim to this virus. Good health to all

Reactions: 5

plow4beer

· #4 · Apr 8, 2020

tynsmyth1 said:
. It is supposed to be used for payroll but can be used for certain other expenses if necessary. If used for payroll it is forgiven and not required to be repaid

So free money!? Whaaaaaat?.....I don't believe in free money, unless you find it laying on the ground

Reactions: 5

JMHConstruction

· #5 · Apr 8, 2020

I had already laid off 2 guys when I found out about the payroll loan. From my understanding, that alone disqualifies me for the "forgivable" part. 1% is pretty good though (I hadn't heard that), even paying it back in full.

I'm not a huge fan of the government handing out "free" money. To me, that's not capitalism. I don't want to see anyone out of work or businesses fail, but sometimes that's the way things happen. There's my unpopular opinion for the day.

That said, I don't NOT write something off on my taxes just because I don't think it should be a write off. The game is meant to be played, I'm just not a big fan of the rule book

Reactions: 1

FredG

· #6 · Apr 8, 2020

plow4beer said:
So free money!? Whaaaaaat?.....I don't believe in free money, unless you find it laying on the ground

Yes and if you never done business with the SBA before it could be a waste of time. You still have to employee X amount of people.

When they say sole proprietor they don't mean work by yourself with no employee's. They want to know if you own 20%, 100% or in between. I think there blowing smoke unless you employ a lot of people which would leave me out.

Besides last season never had more than 4 or 5 guys and won't use no more than that this year. Never the less good luck to all that are applying for it.

FredG

· #7 · Apr 8, 2020

JMHConstruction said:
I had already laid off 2 guys when I found out about the payroll loan. From my understanding, that alone disqualifies me for the "forgivable" part. 1% is pretty good though (I hadn't heard that), even paying it back in full.

I'm not a huge fan of the government handing out "free" money. To me, that's not capitalism. I don't want to see anyone out of work or businesses fail, but sometimes that's the way things happen. There's my unpopular opinion for the day.

That said, I don't NOT write something off on my taxes just because I don't think it should be a write off. The game is meant to be played, I'm just not a big fan of the rule book

Some are already failing and will be lucky to re coop even with monies from the Government. I surely would not worry about laying off. Unemployed are certainly getting a gift.

Unemployment is close to what they get working and that is prevailing wage. A regular worker you pay $20.00 per hr is probably getting almost double of what they were making working after taxes.

seville009

Discussion Starter · #8 · Apr 8, 2020

plow4beer said:
So free money!? Whaaaaaat?.....I don't believe in free money, unless you find it laying on the ground

if it's a "grant", then it is free - at least until they change the rules

the big question at this point is if anyone will actually receive anything anyway - grant or loan.

Reactions: 2

snoboss

· #9 · Apr 8, 2020

My understanding is you can apply for an sba loan and $ 10000.00 does not have to be paid back. After $25000 they are going to line up your collateral for your loan. The whole (SETUP) reminds me of the movie WAR GAMES where at the end of the movie the computer comes up with the best solution... "The only way to win is NOT to play" :dizzy:

:dizzy:

Reactions: 4

FredG

· #10 · Apr 8, 2020

snoboss said:
My understanding is you can apply for an sba loan and $ 10000.00 does not have to be paid back. After $25000 they are going to line up your collateral for your loan. The whole (SETUP) reminds me of the movie WAR GAMES where at the end of the movie the computer comes up with the best solution... "The only way to win is NOT to play"

Amen!

Reactions: 2

cwren2472

· #11 · Apr 8, 2020

JMHConstruction said:
I had already laid off 2 guys when I found out about the payroll loan. From my understanding, that alone disqualifies me for the "forgivable" part.

Having laid them off does not disqualify you- you just have to rehire them and maintain your average payroll after getting the loan

Reactions: 2

FredG

· #12 · Apr 8, 2020

I think we could all use a little bone in times like this forgivable of course. Out of the 62 Yrs I been here I never got nothing for free. My Son got some free money for a tavern. City Money trying to boost tourism.

I'm like WTF Kid really got no established credit besides a car loan with my signature and gets 20K. I'm like if I can get $20K I will buy a building downtown. Went through the steps and was turned away. Years ago I tried to get a SBA loan suggested by my Doctor. Ya okay,

I been a stable 750 beacon score or around for over 30 years. I don't borrow much money but you got to pay on something or you become a ghost. I have no idea what you need to qualify for these forgivable or low interest Government loans.

I know one thing I never received a dime.. Oh also if you think your Veteran status for loans it won't work out to good for you unless you are disabled. The hard working good earning small businessman is going to get nothing for free.

Furthermore I'm not sure I want them looking at my books. Not that I'm doing anything wrong that I know of or my accountant. You could wake a sleeping bear or stir up a hornets nest. Good Luck

See less See more

Reactions: 1

cwren2472

· #13 · Apr 8, 2020

JMHConstruction said:
I'm not a huge fan of the government handing out "free" money. To me, that's not capitalism. I don't want to see anyone out of work or businesses fail, but sometimes that's the way things happen. There's my unpopular opinion for the day.

I understand your position but don't forget that that money is not bestowed by the grant fairy - it's your tax money. If you feel that other businesses are more worthy of your tax dollars, feel free to let them have it. That $2 trillion is getting spent no matter what and you are going to help pay it back (or, rather, your kids and grandkids will)

Reactions: 3

JMHConstruction

· #14 · Apr 8, 2020

cwren2472 said:
I understand your position but don't forget that that money is not bestowed by the grant fairy - it's your tax money. If you feel that other businesses are more worthy of your tax dollars, feel free to let them have it. That $2 trillion is getting spent no matter what and you are going to help pay it back (or, rather, your kids and grandkids will)

I agree with you

JMHConstruction said:
That said, I don't NOT write something off on my taxes just because I don't think it should be a write off. The game is meant to be played, I'm just not a big fan of the rule book

Philbilly2

· #15 · Apr 8, 2020

seville009 said:
This is a link to the online application for $10,000 Federal/SBA loan program; the loan is a grant that does not have to be repaid

have not gone through the application myself; looked it up for someone else and am just passing it along

https://covid19relief.sba.gov/#/

So my understanding of this grant (at least as my accountant explained to me today) is you have to get the PPP loan first, then you can apply for this grant as well.

Anyone heard different on this?

seville009

Discussion Starter · #16 · Apr 8, 2020

Philbilly2 said:
So my understanding of this grant (at least as my accountant explained to me today) is you have to get the PPP loan first, then you can apply for this grant as well.

Anyone heard different on this?

They are different programs according to the link below. Look at page 7

https://www.sbc.senate.gov/public/_...ess-owner-s-guide-to-the-cares-act-final-.pdf

cwren2472

· #17 · Apr 8, 2020

Philbilly2 said:
So my understanding of this grant (at least as my accountant explained to me today) is you have to get the PPP loan first, then you can apply for this grant as well.

Anyone heard different on this?

My understanding is that the PPP loan IS the grant - once its forgiven. There is no "grant" per se

Philbilly2

· #18 · Apr 8, 2020

cwren2472 said:
My understanding is that the PPP loan IS the grant - IF its forgiven. There is no "grant" per se

fixed it fer ya Thumbs Up

Reactions: 4

FredG

· #19 · Apr 8, 2020

Big GC in the City just got a letter from the Government he got all kind of Government funding forgivable without even applying for it. Laid off everybody cause he thinks he's double dipping. :dizzy:

:dizzy:

If he is it's over my head.

Don't ask me I'm just saying what one of his project managers told me. He employs over 100 people. He kept the salary guy it the office doing submitals etc and his office girls.

plow4beer

· #20 · Apr 11, 2020

seville009 said:
if it's a "grant", then it is free - at least until they change the rules

the big question at this point is if anyone will actually receive anything anyway - grant or loan.

I'm sure some will, and feel there's some that it could really save ther ace....but No banker, lawyer, or accountant can tell you how the fed determines (with certainty) if/how the money is "forgiven". And that will not be decided until later on, after you've already taken the money. For some, it's a no brainer that they should try and get it. I doubt We do, we're working...maybe not at 100%, but close enough. I've spent more time researching/talking to my lawyer/banker/accountant (as well as a handful of goons I know in biz for themselves) about it the last few days than I care to admit. I'm gonna keep doing what I've been doing...I learned a lot today from my lawyer & accountant, and it boosted my self confidence

1 - 20 of 203 Posts