congrats!!! :clap:

Devil will be in the details, but its a start.

It's the back-half of SBA stuff that makes it onerous. As a general rule, the SBA lets banks do their own thing on these loans and if everything gets paid off, none of it really matters.

But the reason it's often slow-going is that the banks are REALLY paranoid. If they give out an SBA backed loan and the loan defaults, if they haven't taken every needed step, the SBA won't reimburse the banks. So suddenly that 75/85% backing vanishes and the banks just out the money.

Now to put it in present context - getting the money from the SBA still isn't likely to be the problem. Even before the PPP was approved, banks were being told by the treasury department to do what they have to do short term to keep clients lights on. They were opening the taps already even before the forgiveness models were being thrown around. But what may ultimately be the problem is getting it forgiven. And there's just so many things we still aren't sure of.

So...we shall see.

that's fantastic!

Update on my client: they are now being told the 13th, but still, that is a very good results....10 days from application to funding.....that's good work!

UDATE: Client received his funds today! $800K+ check in hand! That is amazing!

Question:

This thread has been mostly focused on how to get PPP and EIDL funds.

Now the question is: What is the process once you are approved? Is it a traditional closing with loan docs?

Thanks

I'm getting this from my consultant working with this client:
1. PPP App turned in
2. Bank came back, sign some underwriting docs
3. Bank submits to SBA
4. SBA came back with a revised document through the bank that client signed
5. Client signed, returned to bank, who then sent back to SBA
6. SBA confirmed approval via an email to bank, bank to client
7. There was some type of final loan doc the SBA had client sign. I don't know if that was through docu-sign or hard copy
8. Once that final loan doc was sign, SBA approves loan, bank funded....client said they received a check, which surprised me.

Ugh! :( I'm still at Step 1.

Rep for the detail!

How did they get a PPP app turned in 10 days ago? I thought banks didn't start taking applications until 4/3, last Friday?

As I understand it, the loan must be closed within ten days from the approved application.

Tomorrow, gonna make ten more Sculpey clay starfish for my hanging Mason jars around my lanai's eat-in area by my pool to use up time. The real ones, that are dried disintegrate here in the humidity. They're organic matter. So gonna make fake ones, then bake hard. Fake n' Bake.

Congrats on taking the plunge and building your own company.

Yes. You existed before 1/31.

Apply ASAP for the PPP.

So im considered an independent contractor and I will probably be applying for the PPP loan today. Anyone else an IC and going to apply?

Still no word on either of mine... nice

We completed step 7 yesterday.

We also asked the bank to set up a new account for us to deposit those funds into. Our hope is that it will keep things cleaner for later accounting when we look to have the loan forgiven. If we can spend out of that account for anything presently earmarked as 'forgiveable' and ONLY for those things earmarked, we may have an easier time of it on the back end.

Or so is our theory.

Yep, we already did that. Makes it much easier. And paying via papercheck whenever possible instead of electronic payment such as utilities, etc.

Electrical work not considered essential or is business just down because of covid-19?

Let’s hope you aren’t here to just stir shit today...

It is a serious question.

What does it matter?

Hint: it should be obvious

I am one too. But I will not be applying for any money.

Bye then. No need to post here.

Me either. Going to email my banker to see if there is any update.

Anybody doing theirs through Bank of America? Curious about the process and progress others have made.

My initial app was accepted. About two days later, I got an account/login for their 3rd party system they are running things through with info to again fill out the Loan Amount sheet and PPP Addendum. Filled those out and uploaded them along with my tax/payroll documents yesterday. Seems each step has had about a 48 hour turnaround for next communication.

I'm self-employed, S-corp, with only myself on the payroll.

Equity Bank could not have made this any easier on me. Started the process on Wednesday this week, and was funded today. Yes, 3 days total, and about 30 min of my time...max.

* Sent me initial application packet with instructions to calculate forgivable loan amount. Had this filled out in about 5 min.

* Needed to provide 2019 Payroll reports and employer match 401k contribution. I had all of this available in my Google Drive already.

* Equity provided me with a simple drop box to upload the application, worksheet, borrower acknowledgement, and 2019 compensation reports. This was done on Wed.

* Received word early this morning that the loan was approved and just waiting for SBA loan number and promissory note.

* Around noon I received the DocuSign for the loan. Clickety-click, done.

* Cash is now funded in the new business account Equity setup for me specifically for this.

So glad I moved away from Bank of America to Equity Bank 4 years ago. EVERYTHING about them is 1000x better, and now with current events happening and seeing the nightmare people are going through trying to get this stuff with big banks, it just further solidifies that I will never bank with a big bank again.

Equity is regional. They know my name when I walk in and greet me with a big smile. When I call their phone number they immediately pick up and are able to help with whatever I need. When I email they reply back or call within minutes.

I have a HELOC with them as well, and that process was extremely smooth.


Can't rave about them enough.

Just got a response from my banker. He said mine was submitted & accepted this past Sunday. They are waiting on final guidance from SBA on process and they are hopeful to start closing the loans ASAP.

I wrote that when they thought that the funding would come on the 13th....10 days from April 3rd app date....

They actually funded in advance of that, so they did even better.

With that said, they went through a small bank, and had most of the payroll information and other due diligence requirements in their reps hands early in the week, so when the doors opened on Friday the 3rd, everything was already done except the formal application, which was the first one this bank processed.

this...and EIDL...

We've made that exact recommendation to all of our clients as well....I believe that will be very important once the application for forgiveness comes into to play

We've been beating up our banks three times a day, and still no response to our application. I think the big banks are so inundated with volume that they themselves cannot keep track....

All the more amazing that we have the client that already funded....that is definitely the exception, not the rule, at this point.

We just got the Step 1 notification that the SBA has approved the loan....but the credit union had no date of when funding will occur.

That’s fantastic...seems like the smaller banks were the way to go with this thing...

crickets on the EIDL grants!

****in funny post Mr. Plow.

sums it up perfectly....doesn't it!

Was having this exact conversation today with my boss.....I haven't heard of anything on the EIDL....not a single client, business owner, friend, colleague, distance cousin....not one person has reported anything on EIDL....

just my $0.02, but the SBA is on the hook for EIDL...so focus on PPP!

That's actually not step one! you're better than a lot of folks right now....no promise, but it seems like once the SBA notice goes through, the funding is happening quickly....

Maybe it's a government scam. We had to submit our Full Name , address birthdate, place of birth, and bank account routing /account number. We're all set up to get drained !

People are reporting deposits of $1k - $10k as of today.

I got approved yesterday (PPP). It literally took about an hour to get approved. No clue as to when the money will hit though. Had a friend apply a week ago, got approved that day, and said the money was supposed to hit yesterday. But still nothing.

I signed final docs on the PPP today and the funds will be deposited Monday!

Here's a blog post from Paul Niefer. He's an ag accountant, but his stuff on the SBA loans should transfer. Of course, they're still trying to work this out as he talks about in his blog, but it's what we need to start looking at.

LINK

How Much of Your PPP Will be Forgiven?
April 9, 2020 Paul Neiffer

Now that you have received a Paycheck Protection Program loan, you will need to understand the calculations on how much of the loan might be forgiven. As we write this blog post there is already another Bill in the Senate to increase the funding amount by close to $200 billion and make some changes to the program.

But for now, we will focus on how the law allows for part or all of the loan to be forgiven.

The covered period to determine how much will be forgiven starts the day after the loan is funded and runs for 8 weeks. During that period, you are allowed to accumulate all of your payroll costs (employee compensation, group health costs, retirement payments and state and local employer portion taxes), rents, interest on mortgages and utilities. Rents, interest and utility payments all had to be in place on February 15, 2020. The law does mention mortgages on personal property. That needs to be defined.

In order to have all of the loan forgiven, at least 75% must be spent on payroll costs. The new bill may eliminate this requirement. The other 25% can be spent on rents, interest and utilities.

However, simply spending 75% on labor costs may not result in full forgiveness. There are two tests that you must meet. First, your full-time equivalent employee (FTEE) count must be either equal to or greater than a test period. The test period is either February 15, 2019 through June 30, 2019, or January 1, 2020 to February 29, 2020. All of these tests are based on monthly averages.

If your FTEE’s during the covered period is greater than the test period, then no reduction in loan forgiveness. For many farmers this may be fairly easy to meet. However, the next adjustment calculation may be more burdensome.

You are required to determine if total pay to each employee during the 8 week covered period is less than 75% of the total pay during the first quarter of 2020 (the wording in the CARES Act discusses a more than 25% reduction in total pay for each employee). The first quarter has 13 weeks and 75% of 13 is 9.75 weeks. Therefore, to not have any reduction in loan forgiveness you are required to stuff 9.75 weeks of pay for each employee into an 8 week period. Let’s look at an example:

Sue obtains a PPP loan of $40,000 based on wages paid to her five hired hands. During the first quarter she paid the 5 workers a total of $50,000. 75% of $50,000 is $37,500. During the 8 week covered period, she paid the workers $29,000. $8,500 of her $40,000 loan will not be forgiven even though she spent all $40,000 on payroll costs during the period (the other $11,000 was spent on health insurance and state payroll taxes).

This calculation appears to be required for each employee and any employee whose annualized pay exceeded $100,000 for any pay period in 2019 is not counted. Here is an example:

One of Sue’s workers incurred a large amount of overtime in 2019 for one pay period. She pays her workers weekly and his gross payroll for that particular week was $2,000 which results in $104,000 of annualized pay. Sue does not need to include him in the loan forgiveness calculation.

The bottom line is that PPP loans may be easy to get, but they may be tougher to get full forgiveness. We shall see if Congress makes changes to this or if that was their intent.

I have nothing but good things to say about Equity Bank. I have an account with them for my LLC, and I can vouch for everything you've said about them. Absolutely first rate.

This is a fantastic write up....thank you! The one thing I'd clarify is that the interest allowed under PPP is mortgage interest. The exact language in CARES is "payments of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation);"

Finalized our PPP application Friday.

Should get paid by Wednesday or so.

any word or news on EIDLs?

It appears you ain't getting 10K unless you have 10 or more employees.


“The SBA is experiencing a large volume of applications for the Economic Injury Disaster Loan,” the agency wrote to one loan applicant in a message shared with The New York Times. “Due to current appropriations for this program, the SBA will make initial loan disbursements for two months of working capital up to a maximum of $15,000 per applicant.”

In remarks on the Senate floor on Thursday, Sen. Ben Cardin (D-Md.) also said the loan program was “only able to provide $15,000” to small businesses that applied, even though the average amount requested was $200,000.

Small businesses have applied for $372 billion worth of Economic Injury Disaster Loans, according to Cardin. “But here’s the problem: We have only authorized $7.3 billion for that program,” he said.

Cardin has called for providing the program with enough money to make another $300 billion worth of loans.

:facepalm:

This is ****ed.

It’s all ****ed.

I applied for both the PPP and EIDL.

Havent heard shit on either one. Meanwhile my customer base has dried up to almost nothing.

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Same here.

We got funded today. So I think that was just a tick under 2 weeks from submitting our application - 'bout 10 days flat, IIRC.

congrats!

Fist of all, Congratulations!

Was it PPP or EIDL? Did you submit on the 3rd then?

Did you have additional steps after the initial application?

What bank?

PPP.

It was a Thursday and approved that Saturday, so looks like it must've been on the 2nd.

Early last week I docusigned a couple of statements confirming the language in the applications; 3 spots.

Hawthorn Bank.

They funded it into our operating account so we'll just go ahead and make a quick transfer once the PPP 'secondary' account gets set up, but it should be pretty straightforward.

Thats incredible, I think you are one of the lucky ones.

I called Thursday and was told to get in the Que on Friday the third. Wasnt able to actually apply until Tuesday the 7th. Chase Bank.
Havent heard anything since except I will get an Email once its processed.
Starting to get nervous, Im hearing they will run out of money this week.

Great to hear bud. Still waiting on mine - haven't signed anything other than the initial app.

Yeah, bank came through big time.

We've done some SBA stuff in the past and Hawthorn is incredibly good at it - they really know how to navigate that process.

It's a little frustrating sometimes if we're looking for a fairly small loan and their first response is "we'll contact the SBA..." when it's just 100K for servers or something and really doesn't need that kind of backstop. But because of their tendency towards pursuing an SBA backed structure, they were able to just rock through this one.

I received the PPP funds a couple hours ago.
I just received this email from the SBA about the EIDL. I’m not sure but it sounds like I AM getting the 10k advance?? We have 31 employees. Since we got the PPP I’m no longer interested in taking on further EIDL debt. Am I able to get the PPP and the EIDL 10k without issue? (Paging mililo4cpa)

—————————————————
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.

If the 10K is an advance on the EIDL, how do they determine how much you actually get?
I ask because when I filled it out there was no place to ask for an amount.

Take a look at the last line of what you quoted. I didn’t know until this. Good luck to you!

I believe they said loans up to 2 million. Its only the 10k advance on the loan that had an actual amount. Its confusing. I guess no one has got to the next steps where the amount is either determined or requested?

I appreciate your update. Thanks

Sorry, I misread your question the first time. I don’t know the answer.

This whole thing has really screwed up my livelyhood. Work as a general contractor and usually I get calls from people about wanting their roof looked at from a storm. Well we haven't had a storm recently, so to drum up new business I would have to go door to door and people aren't too appreciative of salesman coming to their door when they can't even have family over. So if we don't have a hail storm sometime soon itll be really shitty.

I’ll send some good karma your way, brother.

Just saw my EIDL advance payments come through for two of my businesses. Haven't seen it yet in two others.

Best of luck, friend.

JEALOUS!

On hold with the SBA to see where our first two are....we are number 1,077 with a wait time of 42 minutes. :banghead:

Hang in There!

Post on Facebook!! I see people asking all the time for contractors.

If you were close to Two Rivers, I have roof and siding work that needs to be done.

has to be the first instance I've heard from anyone on EIDL

PPP is going two routes: Small banks = funding (or clear communication), large banks = shitshow....

Congrats to those that received funding already.....it's no small feat given the timing of everything....

I finally tracked down a bank that has their head removed from their ass.

We will see how it goes, but I feel way behind the game already even though I was ahead of it until the local morons screwed things up.

Good Luck!

Good luck to all of you.
Hang in there. I think this shit is about to take a turn for the better.

Yes it is.

No doubt in my mind.

Got my stuff for the PPP all wrapped up. Thankfully.

This shoulda been a warning sign...

;)

Good luck man - seems like getting the right bank involved in this will be huge and if anyone is seeing stumbles early in this process, that's probably a huge red flag as to how things will go on the back side when things get REALLY iffy.

Because if a bank is struggling to get money out of the treasury right now, when the tap is wide open, they're gonna REALLY struggle to get it forgiven later.

Make really really sure you're confident in how your lender is handling all this because the only thing worse than not getting it will be having to pay all of it off in 2 years as being floated around.

new acquisition covered also?

Applied for 2 EIDLs on 4/4:

Received this email this AM:

_______________________

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:

Paycheck Protection Program Full EIDL Loan

PURPOSE

Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable)

To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven)

TERMS

Up to $10 million

1% interest rate

Up to $2 million

3.75% for businesses

2.75% for non-profits

FORGIVABLE

YES

NO – EIDL Loan

YES – EIDL Advance

MATURITY

2 years

30 years

FIRST PAYMENT DUE

Deferred 6 months

Deferred 1 year



To locate a Paycheck Protection Program Lender, please visit: www.SBA.gov/PaycheckProtection.

Information on available resources may be found at www.sba.gov/coronavirus. For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the nearest SBA district office and/or SBA's resource partners.

I have two more EIDLs to file.

I may wait till the next batch of funding hits the pipeline.