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Covid-19 SBA grant application

21K views 202 replies 23 participants last post by  m_ice 
#1 ·
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/#/
 
#2 ·
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
 
#4 ·
. 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
 
#5 ·
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
 
#7 ·
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.
 
#12 ·
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
 
#19 ·
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: 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.
 
#37 · (Edited)
The 10 weeks/250%/2.5 times is an arbitrary figure designed to roughly cover 8 weeks of payroll plus 2 months of the other covered expenses (utilities, mortgage, the other stuff I dont remember) - if your actual expenses dont equal that 250% when they ask for the documentation at the end of the period, then they will only pay off what you can document

FWIW, the 2.5 times came within 4% of what we calculated using our rough numbers - if we have to pay back a few percent because we over guessed, who cares? The rest is all free money and it would have been expenses we had to pay anyway
 
#42 ·
The 10 weeks/250%/2.5 times is an arbitrary figured designed to roughly cover 8 weeks of payroll plus 2 months of the other covered expenses (utilities, mortgage, the other stuff I dont remember) - if your actual expenses dont equal that 250% when they ask for the documentation at the end of the period, then they will only pay off what you can document

FWIW, the 2.5 times came within 4% of what we calculated using our rough numbers - if we have to pay back a few percent because we over guessed, who cares? The rest is all free money and it would have been expenses we had to pay anyway
It's waaaaaay too early for this...
 
#49 ·
Nothing to do with the loan, but since the 1200.00 was mentioned.

I wasn't anticipating receiving anything base on my yearly income. To my surprise, I got 319.40 yesterday.

2018 and 2019 IRS filing are north of 160K for me.
 
#70 ·
#72 ·
#73 ·
Apparently there's only 1 guy that is overseeing the entire program.
 
#74 ·
So has anyone received and real "direction" for the PPP money?

I have asked my accountant and my banker if I don't have work for all my guys, am I supposed to keep them on, pay them with this money and HOPE it is forgiven? What if it is not? I just payed them to sit home and I am now on the hook for the money?

Honestly... since I am on the fence... not 100% sure it will be forgiven, my banker says that portion of the program has not been given to the banks by the SBA yet, it seems much easier to just lay them off and pay the money that you don't use back after the 8 weeks?

I just wish someone had a clue so I knew which way to go with this. :dizzy:
 
#76 ·
So has anyone received and real "direction" for the PPP money?
Yes....the direction is there is no direction, at least not officially.

It was recommended to us to take some of us off unemployment starting next week and use the money to cover payroll. Use as much as possible through normal payroll, benefits, bonuses, retention bonuses/raises, etc.

So apparently I'm going back to work next week.
 
#75 ·
We haven't seen a dime - our accountant said the Bank of America basically screwed us by not filing in a timely fashion and it appears he's telling the truth because our banker just followed up yesterday to say that she needs another document. She hadn't even looked at them until now. She is working on it now in case they approve the next wave of money but I'm not holding my breath.

In any case, I've heard a lot of businesses, especially restaurants that are shut down indefinitely, raising the same concern you have. We are still going to chance it anyway though I have little hope we'll ever get anything regardless.
 
#80 ·
We just got the SBA Grant deposited into our bank account today. No warning nothing. Filled out there necessary stuff like 2 weeks ago, right when it came out
 
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#92 ·
So I decided to apply at the end of last week...2hrs after applying, my banker called me and said I was approved. Told me I needed to come through the drive through this week,sign papers, and take my check....That was today.....worked out perfect, because today is the first day of our pay period (thurs-wed)
 
#142 ·
1099 people have to apply for themselves and business owner can only apply for employees that are on your annual payroll form 940 and 1st qtr 941. I'm a full time 1099 sub contractor as a mortgage broker and I received my PPP loan yesterday. So yes 1099 people can get. If your 1099 you need to provide your 1099-misc and a copy of the all the checks you received for 1st quarter 2020. Overall it was a very pain less process and I just had to provide a couple documents. I applied with paypal on 4-24 and received the deposit yesterday. Took about 5 mins and never talked to a person, Kind of crazy. My boss at the mortgage company has been given the run around and has been denied 3 times apply with banks, so I honestly think its best to apply online with a Fintech company like Paypal or Kabbage. If you have all the forms already, its a very simple process.
 
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