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Tomorrow is the big day! Payroll Protection Program Loans open up for small biz and sole props. Threading some FAQs here I answered via @Forbes. Not legal advice. Just trying to do my part in helping figure out how all this will work. Lets go! https://www.forbes.com/sites/brianthompson1/2020/04/01/frequently-asked-questions-on-the-cares-business-loans/#4ca0e2e35767 (1/11)
Can I get these loans and unemployment?
Maybe? Depends on what you use the loan funds for: payroll (including you), mortgage paid leave, supply chain disruptions. Also depends on your state. (2/11)
Maybe? Depends on what you use the loan funds for: payroll (including you), mortgage paid leave, supply chain disruptions. Also depends on your state. (2/11)
Can I get an EIDL and a PPP Loan?
Yep. Key is to use the money to cover different expenses (i.e., not “the same purpose or duplicative amounts.”). See Section 1102(a)(2)(G), ( https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR+748%22%5D%7D&r=1&s=1#HC97258A7D86F42A69157C1217FC152F5 (3/11)
Yep. Key is to use the money to cover different expenses (i.e., not “the same purpose or duplicative amounts.”). See Section 1102(a)(2)(G), ( https://www.congress.gov/bill/116th-congress/house-bill/748/text?q=%7B%22search%22%3A%5B%22HR+748%22%5D%7D&r=1&s=1#HC97258A7D86F42A69157C1217FC152F5 (3/11)
I work by myself and pay contractors. Do I still have payroll?
Yes. Section 1102(a)(2)(A)(viii)(bb) expands the definition of payroll costs to include payments to or income of sole prop or independent contractor that is not more than $100,000.” (4/11) https://www.congress.gov/bill/116th-congress/house-bill/748/text#HE040BA6B62394E7E9A6FEAF56B3CEEA0
Yes. Section 1102(a)(2)(A)(viii)(bb) expands the definition of payroll costs to include payments to or income of sole prop or independent contractor that is not more than $100,000.” (4/11) https://www.congress.gov/bill/116th-congress/house-bill/748/text#HE040BA6B62394E7E9A6FEAF56B3CEEA0
What is this eight-week formula everyone keeps talking about?
This is the formula to figure out if your loan forgiveness under PPP will be reduced. I like the US. Chamber of Commerce illustration for figuring this out.
https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf (5/11)
This is the formula to figure out if your loan forgiveness under PPP will be reduced. I like the US. Chamber of Commerce illustration for figuring this out.
https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf (5/11)
Is it REALLY forgiven?
Yep. If you use the PPP loan for one of the purposes listed above for the eight weeks following the inception of the loan, it is forgiven. Similarly, the $10,000 advance is not required to be repaid, even if you’re denied additional funds. (6/11)
Yep. If you use the PPP loan for one of the purposes listed above for the eight weeks following the inception of the loan, it is forgiven. Similarly, the $10,000 advance is not required to be repaid, even if you’re denied additional funds. (6/11)
Where do I apply?
Online application for EIDLs has been open since Monday. You apply for the PPP through an SBA-approved bank. Starts tomorrow 4.3 for small businesses and sole proprietorships. 4.10 for independent contractors and self-employed. https://www.sba.gov/page/disaster-loan-applications (7/11)
Online application for EIDLs has been open since Monday. You apply for the PPP through an SBA-approved bank. Starts tomorrow 4.3 for small businesses and sole proprietorships. 4.10 for independent contractors and self-employed. https://www.sba.gov/page/disaster-loan-applications (7/11)
I applied for EIDLs before the CARES Act went into effect. Should I apply again?
Yes. The SBA has specifically stated business owners need to apply through the new application to get the advance. (8/11)
Yes. The SBA has specifically stated business owners need to apply through the new application to get the advance. (8/11)
I heard EIDLs are based on credit and mine isn’t that great. Should I still apply?
Yes! SBA has said that they will try to be flexible. Additionally, there are no application, guarantee or prepayment fees, so there’s no harm in applying. (9/11)
Yes! SBA has said that they will try to be flexible. Additionally, there are no application, guarantee or prepayment fees, so there’s no harm in applying. (9/11)
Is this real? This seems like too much of a good thing.
It’s definitely real. It’s also a lot to juggle when you’re also dealing with a pandemic. I hope this helps. We will learn a lot more as things start to play out. I’d love to hear your successes and challenges. (10/11)
It’s definitely real. It’s also a lot to juggle when you’re also dealing with a pandemic. I hope this helps. We will learn a lot more as things start to play out. I’d love to hear your successes and challenges. (10/11)
Need more info?
See article in (1/11) and this via @Forbes https://www.forbes.com/sites/brianthompson1/2020/03/29/getting-cash-for-your-small-business-through-the-cares-act/#1a74e3c043a0 (11/11)
See article in (1/11) and this via @Forbes https://www.forbes.com/sites/brianthompson1/2020/03/29/getting-cash-for-your-small-business-through-the-cares-act/#1a74e3c043a0 (11/11)