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/#/

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161 - 180 of 203 Posts

Philbilly2

· #161 · May 5, 2020

makes me wonder how they determine "if covid affected your business"

For many of us, we will not feel the pain till long after everyone is back at work. I am getting paid for much work done in 2019 right now... Just got a retainer check from a project we finished in winter of 2018... right now...

So if they just look at dollar balances... the pain will not show on a ledger till long after the virus unicorn makes this all go away for many...

Reactions: 4

EWSplow

· #162 · May 5, 2020

Philbilly2 said:
makes me wonder how they determine "if covid affected your business"

For many of us, we will not feel the pain till long after everyone is back at work. I am getting paid for much work done in 2019 right now... Just got a retainer check from a project we finished in winter of 2018... right now...

So if they just look at dollar balances... the pain will not show on a ledger till long after the virus unicorn makes this all go away for many...

I'm kinda in your situation. Still collecting for February snow and work done in March. I still have receivables from 2019.
So far, I've got contracts through August.
My biggest fear is not having working capital this fall.

EWSplow

· #163 · May 5, 2020

I heard a story from a guy.
He's knows someone who was homeless. They cleared out tent city and found homes for almost everyone. This guy got a rent free apartment and recently received a stimulus check. From what I've heard, he hasn't worked or filed taxes in years.

cwren2472

· #164 · May 5, 2020

EWSplow said:
I heard a story from a guy.
He's knows someone who was homeless. They cleared out tent city and found homes for almost everyone. This guy got a rent free apartment and recently received a stimulus check. From what I've heard, he hasn't worked or filed taxes in years.

You say that like "working" or "paying taxes" is some sort of requirement prior to getting money from the government. What country is Milwaukee in?

Reactions: 3

EWSplow

· #165 · May 5, 2020

cwren2472 said:
You say that like "working" or "paying taxes" is some sort of requirement prior to getting money from the government. What country is Milwaukee in?

Poland

Reactions: 5

Mark Oomkes

· #166 · May 5, 2020

Philbilly2 said:
makes me wonder how they determine "if covid affected your business"

For many of us, we will not feel the pain till long after everyone is back at work. I am getting paid for much work done in 2019 right now... Just got a retainer check from a project we finished in winter of 2018... right now...

So if they just look at dollar balances... the pain will not show on a ledger till long after the virus unicorn makes this all go away for many...

April '20 might be our best month ever. We invoiced all our seasonal customers, collected 1/2 from our residentials and had very little in expenses.

Bank account looks better than it did all winter...well, what winter there was. Even without the PPP deposit showing in QB.

Reactions: 4

Mr.Markus

· #167 · May 6, 2020

It is shaping up to be a very busy summer.
All my weekend customers are isolating at their "cottages" and coming up with some lucrative extras...

Reactions: 1

JMHConstruction

· #168 · May 8, 2020

I never read too much into the loan, but what prevents someone from getting the PPP loan, and writing 75% of it to themselves as a payroll check and having it forgiven? Do those of you that got it have to prove what employee got what?

I heard something like you have 6 months to show where the money went, but didn't hear what the requirements were.

seville009

Discussion Starter · #169 · May 8, 2020

JMHConstruction said:
I never read too much into the loan, but what prevents someone from getting the PPP loan, and writing 75% of it to themselves as a payroll check and having it forgiven? Do those of you that got it have to prove what employee got what?
I heard something like you have 6 months to show where the money went, but didn't hear what the requirements were.

This is a pretty good article- may help

https://www.forbes.com/sites/jasonb...hould-do-after-receiving-a-loan/#50e9b8836170

Reactions: 1

Mark Oomkes

· #170 · May 13, 2020

Looks like @Philbilly2 will probably be the only one that has to worry about the PPP thing.

https://www.sba.gov/sites/default/files/2020-05/Paycheck-Protection-Program-Frequently-Asked-Questions_05 13 20.pdf

Only if you received over $2 mil...

cwren2472

· #171 · May 13, 2020

Mark Oomkes said:
Looks like @Philbilly2 will probably be the only one that has to worry about the PPP thing.

https://www.sba.gov/sites/default/files/2020-05/Paycheck-Protection-Program-Frequently-Asked-Questions_05 13 20.pdf

Only if you received over $2 mil...

Our banker explained that they are still responsible for approving the loan forgiveness and verifying the documentation provided (payroll records, etc.) at that time - the only difference is whether or not the SBA actually gets involved in deciding forgiveness.

cwren2472

· #172 · May 13, 2020

Our Bank of America banker told us that we were "very lucky" that they didn't submit our application until late since a lot of other companies "got their loans early but couldn't reopen to bring back employees and use the funds due to shutdowns"

So, apparently we are supposed to send her a fruit basket as a thank you for procrastinating on our loan app? Quite the way to put spin on that.

Reactions: 3

Philbilly2

· #173 · May 14, 2020

Mark Oomkes said:
Looks like @Philbilly2 will probably be the only one that has to worry about the PPP thing.

https://www.sba.gov/sites/default/files/2020-05/Paycheck-Protection-Program-Frequently-Asked-Questions_05 13 20.pdf

Only if you received over $2 mil...

Sorry bud... don't fit in that category... small potatoes here...

Reactions: 1

Philbilly2

· #174 · May 14, 2020

2

Mark Oomkes said:
Looks like @Philbilly2 will probably be the only one that has to worry about the PPP thing.

https://www.sba.gov/sites/default/files/2020-05/Paycheck-Protection-Program-Frequently-Asked-Questions_05 13 20.pdf

Only if you received over $2 mil...

cwren2472 said:
Our banker explained that they are still responsible for approving the loan forgiveness and verifying the documentation provided (payroll records, etc.) at that time - the only difference is whether or not the SBA actually gets involved in deciding forgiveness.

My banker sent me this yesterday outlining question #46

Font Material property Screenshot Parallel Document

Font Document Terrestrial plant Screenshot Publication

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Mark Oomkes

· #175 · Jun 8, 2020

From my accountant:

As of Friday, President Trump signed the law that cleared changes to the Paycheck Protection Program (PPP) that allows small business more flexibility in using the loan proceeds received. This will allow businesses more time to meet the requirements in order to qualify for loan forgiveness.

Some highlights to the loan changes are below:

Extending the time period from 8 weeks to 24 weeks or the end of the year 2020, whichever comes first to spend the money
Give some (see below) borrowers until December 31, 2020 to restore reduced staffing levels instead of June 30, 2020

(Under the modified terms, if borrowers document that they were unable to restore business levels from before February 15, 2020 because of having to follow federal requirements for sanitization or social distancing, they will be covered.)

Repayment time extended from 2 years to 5 years This would only apply to PPP loans made after this measure was passed, but borrowers and lenders will be able to agree to extend existing loans.
Reduction of payroll costs from 75% to 60% and increase of non-payroll costs (utilities, rent, transportation) to 40% from 25%. It also includes a trap that if you don't have 60% in payroll costs, the updated law has a caveat that none of the loan proceeds will be forgivable!

PPP loan deadline to apply from June 30, 2020 to December 31, 2020

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Reactions: 1

Ajlawn1

· #176 · Jun 8, 2020

Mark Oomkes said:
From my accountant:

As of Friday, President Trump signed the law that cleared changes to the Paycheck Protection Program (PPP) that allows small business more flexibility in using the loan proceeds received. This will allow businesses more time to meet the requirements in order to qualify for loan forgiveness.

Some highlights to the loan changes are below:

Extending the time period from 8 weeks to 24 weeks or the end of the year 2020, whichever comes first to spend the money

Give some (see below) borrowers until December 31, 2020 to restore reduced staffing levels instead of June 30, 2020

(Under the modified terms, if borrowers document that they were unable to restore business levels from before February 15, 2020 because of having to follow federal requirements for sanitization or social distancing, they will be covered.)

Repayment time extended from 2 years to 5 years This would only apply to PPP loans made after this measure was passed, but borrowers and lenders will be able to agree to extend existing loans.

Reduction of payroll costs from 75% to 60% and increase of non-payroll costs (utilities, rent, transportation) to 40% from 25%. It also includes a trap that if you don't have 60% in payroll costs, the updated law has a caveat that none of the loan proceeds will be forgivable!

PPP loan deadline to apply from June 30, 2020 to December 31, 2020

That's really good for restaurants and those who have been closed still or working with minimal staff... I think we've burned it up this week...

I thought they were saying could be a tough sell for that to pass and another stimulus check due to the new jobs report...

Philbilly2

· #177 · Jul 7, 2020

So has anyone received any guidance on the forgiveness yet or filed anything yet?

cwren2472

· #178 · Jul 7, 2020

Philbilly2 said:
So has anyone received any guidance on the forgiveness yet or filed anything yet?

BoA said we should be getting forms within the next few weeks

Mark Oomkes

· #179 · Jul 7, 2020

Philbilly2 said:
So has anyone received any guidance on the forgiveness yet or filed anything yet?

From the government?

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Reactions: 4

Ajlawn1

· #180 · Jul 7, 2020

Philbilly2 said:
So has anyone received any guidance on the forgiveness yet or filed anything yet?

I'm still wondering where our $3400 stimulus check/debit card is...

Reactions: 1

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