SBA PPP loan thread

[OnlyGerman]

Originally Posted by saeyedoc

I was told it's only two years at 1%. I think EIDL is higher interest, longer term.

EIDL is fixed at 3.75 with up to 30 year term depending on revenue

[Mr Pete]

Seems like most of my colleagues that received funding were banking with smaller local institutions.

I bank with BofA. I submitted application a week ago. Uploaded docs last Sunday. Got a call yesterday, everything was received, I'll receive a call if anything else is needed. I just hope to get funding by end of April. Utilize the loan for 2 months, which by then my business should be operating, though at a reduced capacity than pre-covid.

[Mr Pete]

Originally Posted by TrevorM3

how long will it take for the 10k EIDL grant to kick in you guys think?

I think we would have received the EIDL $10k by now if there was any money left. Apparently it was supposed to be 3 days after you applied, you should have received funding via ACH

[Mr Pete]

Originally Posted by RickFLM4

Then I think a portion won’t be forgiven and becomes a low interest loan.

This.

I plan on paying my employees for 8 weeks, regardless. 3 of them will not be able to work due to state mandates, but they'll get paid to be at home. I just hope to be able to utilize this so that it coincides with when I am allowed to work again. Cover payroll costs while I'm actually working, that would be fantastic.

I'm still very pessimistic about my chances of receiving any money. I'll believe it when I see it. No clue where the heck this money is coming from...

[OnlyGerman]

Originally Posted by Mr Pete

I think we would have received the EIDL $10k by now if there was any money left. Apparently it was supposed to be 3 days after you applied, you should have received funding via ACH

Some are reporting that they are only getting $15k(25k potentially with grant) from the EIDL. After some research, it seems this is an initial payment, with the remainder of the funds issues later. I would hope this is the case, as a total of 25k cap is useless for some businesses.

On SBA website, they mention 25k is the max for a unsecured loan, so maybe just pushing this out for now. But there is no mention of a limit, other than the 2million we are aware about.

[MisterF80M3]

Can you get EIDL loan and PPP loan at the same time and have them both forgiven?

[Mr Pete]

Originally Posted by MisterF80M3

Can you get EIDL loan and PPP loan at the same time and have them both forgiven?

My understanding is, if you're approved for both, you subtract EIDL $10k from the PPP loan amount. But if you only have EIDL $10k grant, then you don't pay that back.

[DocL]

I submitted my EIDL two weeks ago and nothing has been deposited. I finally uploaded all of my payroll documents last Thursday and I got two calls from BoA. One was verify my documents were correct and that now my loan was being sent to the next department to be reviewed. I got a call yesterday, Saturday, but I missed it. It was from another person at BoA who I guess wanted to verify everything was correct again and then start the funding for my PPP. I'm going to call him back in the morning to see what the next step is. The only good thing is when I've called them back the call gets answered right away and I'm not the 4000th person on hold.

This entire process has been a cluster fuck. My business is closed until May 8th and I haven't even made $500 since March 16th. Once this entire thing is over I'm going to consider buying a carpet cleaning franchise. They are considered an essential business and a dentist isn't. Just goes to show that a higher education isn't worth shit.

[OnlyGerman]

Originally Posted by MisterF80M3

Can you get EIDL loan and PPP loan at the same time and have them both forgiven?

EIDL loan portion is not forgiven, but you can have that and PPP as long as funds are used for different purposes. If both, whatever received as the advance in the EIDL, is subtracted from the forgiven amount in PPP. So still good if we ever see the $$.

[TXSTYLE]

Worth your read.... https://www.cnbc.com/2020/04/13/mark...-the-cold.html

[Mr Pete]

Originally Posted by TXSTYLE

Worth your read.... https://www.cnbc.com/2020/04/13/mark...-the-cold.html

This is what I thought would happen. And unfortunately, there's a part of me that believes banks should be wary of who they lend to vs throwing money at everyone who filed an application. They're taking on most of the risk even though the money is from some secret unknown place that holds a magic machine that can create money when beckoned to.

I know I'll sound like an asshole when I say this, but not all businesses deserve to be bailed out, particularly if they were struggling before this mess happened, and their balance sheet looks bad. Putting a band aid on the inevitable doesn't make a whole lot of sense.

[hubbahubba]

Originally Posted by Mr Pete

This is what I thought would happen. And unfortunately, there's a part of me that believes banks should be wary of who they lend to vs throwing money at everyone who filed an application. They're taking on most of the risk even though the money is from some secret unknown place that holds a magic machine that can create money when beckoned to.

I know I'll sound like an asshole when I say this, but not all businesses deserve to be bailed out, particularly if they were struggling before this mess happened, and their balance sheet looks bad. Putting a band aid on the inevitable doesn't make a whole lot of sense.

I understand your point, and to a certain extent I agree. Good money after bad is not good. Problem is, that is a pretty powerful position for a banker to be in, more than I think they should have in an instance such as this.

[RickFLM4]

Just received an email with this information:

Dear Applicant,
On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

[Mr Pete]

Originally Posted by RickFLM4

Just received an email with this information:

Dear Applicant,
On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

Whoa. I'm eating some crow today after all that 'I'm never going to see money, f the government' talk lol. Got the EIDL grant.

Now I feel pretty good about rent for next 2 months, and bills. I asked my landlord about rent abatement and they told me to go pound sand lol f them

This was my 2nd time applying. The first time was 2 weeks ago. The most recent time I applied, 2 days ago. So worth it to keep trying!

[Zara]

Was just told by my accountant that SBA Lenders started accepting applications from independent contractors and sole proprietors on Friday April 10th. I'm going to see if I can reapply so that my 1099 employees can get funded as well since I still haven't received anything after a week of submitting the original application.

[TXSTYLE]

Originally Posted by hubbahubba

I understand your point, and to a certain extent I agree. Good money after bad is not good. Problem is, that is a pretty powerful position for a banker to be in, more than I think they should have in an instance such as this.

You are ABSOLUTELY Correct... PERIOD!

[RickFLM4]

Originally Posted by Zara

Was just told by my accountant that SBA Lenders started accepting applications from independent contractors and sole proprietors on Friday April 10th. I'm going to see if I can reapply so that my 1099 employees can get funded as well since I still haven't received anything after a week of submitting the original application.

My bank has a waiting list just to get an application for a PPP loan.

[saeyedoc]

Originally Posted by Mr Pete

Whoa. I'm eating some crow today after all that 'I'm never going to see money, f the government' talk lol. Got the EIDL grant.

Now I feel pretty good about rent for next 2 months, and bills. I asked my landlord about rent abatement and they told me to go pound sand lol f them

This was my 2nd time applying. The first time was 2 weeks ago. The most recent time I applied, 2 days ago. So worth it to keep trying!

EIDL is only a grant for the first $1000/employee up to $10,000. The rest is a long term loan, supposedly the length of the term will be based on your prior revenue.

[Mr Pete]

Originally Posted by saeyedoc

EIDL is only a grant for the first $1000/employee up to $10,000. The rest is a long term loan, supposedly the length of the term will be based on your prior revenue.

Exactly. Which is what I received. $1000/employee.

[Mr Pete]

Originally Posted by RickFLM4

My bank has a waiting list just to get an application for a PPP loan.

PayPal is originating ppp loans. Loanbuilder.com I believe.

[RickFLM4]

Originally Posted by Mr Pete

PayPal is originating ppp loans. Loanbuilder.com I believe.

Thanks. I know I can go elsewhere but am trying to stick with my bank (SunTrust / Truist) since I've had a relationship with them 20+ years. If nothing happens for a while, I will look elsewhere. Not in urgent need, just thought it was ridiculous to see a waiting list for an application. It's like going to the doctor and sitting in one waiting room before they take you to another and then the exam room with waits each stop.

As an aside, while I appreciate the suggestion, I avoid PayPal like the plague (or should I say COVID?). I have had an identity theft problem for a long time that I am convinced originated with PayPal.

[Spgm5]

Just got a call today. My application has been approved and should have funds my Thursday morning.