Hey Small Business Owners...What are you doing to ride the storm out?

[Trivers]

How are you handling HR issues?

Are you applying for SBA loans?
There are several types of loans. And new info is appearing daily.

Capital up to $10MM.
Up to 30 years to repay. Some actually are forgivable.
3.75 to 4%

https://disasterloan.sba.gov/ela/

https://www.inc.com/kevin-j-ryan/sma...incthismorning



My world: Everyone at the software companies are working remotely. The chocolate factory shut down yesterday due to not be considered an essential business. The chocolate elve had already left due to health concerns. I handle all the commercial rentals myself so no impact:

I don't intend to lay-off anybody...if this stretches into June or July...then we may look at cutting salaries by 25 to 50%. With the $1,200 everyone is getting already from the gov, and the 4 month unemployment (+$600/week additional), if we have to do layoffs, then the Team will not be totally without funds.

What are you doing to ride the storm out?

[dlphg9]

So just applied for EIDL. How long does it take to get the advance?

[scho63]

Hopefully no one here got their business burned to the ground or looted.

[Trivers]

Originally Posted by dlphg9

So just applied for EIDL. How long does it take to get the advance?

weeks. that was in the beginning.

[MelGrif]

I faced some financial issues due to the quarantine and had to get a small loan for my business. Unfortunately, my credit score doesn't allow me to get a bank loan, so bad credit loans online seemed to be the only way out. Of course, I paid my debt off as quickly as I could. And I know that many people are skeptical about such loans, but it really helped me.

[Buehler445]

So how is everyone doing?

Shit got busy with fieldwork and I pretty much quit paying attention.

I did get my PPP loan forgiven, which may not be a great deal, depending on what they do with the second round. But I am excited about them allowing us to deduct the expense yet.

I didn't have any stored grain, so I didn't get any of the CFAP money, but CFAP2 I was eligible for based on insured acres. That helped.

Is anyone doing the second round of PPP?

I need to do some research on these payroll credits. Does anyone have the skinny on that? I'm probably out because of related party, but I need to figure it out nonetheless.

I didn't get an EIDL, but Dad did. We'll see how that plays out.

[notorious]

Good bump. I got my loan forgiven, too.

If they are allowing us to deduct the expense, holy shit that's a very nice bonus.

I need to call about the second round of PPP.

[Buehler445]

Originally Posted by notorious

Good bump. I got my loan forgiven, too.

If they are allowing us to deduct the expense, holy shit that's a very nice bonus.

I need to call about the second round of PPP.

Yeah. They passed that recently. Make sure your tax preparer knows. Essentially it is a tax free grant. I don't know why they didn't go down that road to start with. It would have been a hell of a lot easier than trying to keep track of which expenses you used in the PPP loan so you can take them off the return.

But whatever. I'm happy.

[mililo4cpa]

I have several clients that are eligible and putting packages in for round 2.....

I was VERY concerned about the expense reduction clause, but held out faith that the intention of the original PPP wasn't to give money in advance only to screw the participant later.....thank goodness that common sense prevailed.

Haven't dug into the new PPP parameters as much as the old one (been very busy lately), but one question that came up yesterday was whether the first loan had to be forgiven in order to qualify for the second round.....I honestly didn't know and haven't had time to research. Anyone know the answer to this?

[Buehler445]

Originally Posted by mililo4cpa

I have several clients that are eligible and putting packages in for round 2.....

I was VERY concerned about the expense reduction clause, but held out faith that the intention of the original PPP wasn't to give money in advance only to screw the participant later.....thank goodness that common sense prevailed.

Haven't dug into the new PPP parameters as much as the old one (been very busy lately), but one question that came up yesterday was whether the first loan had to be forgiven in order to qualify for the second round.....I honestly didn't know and haven't had time to research. Anyone know the answer to this?

What I'd heard (not verified) was that if you had it forgiven you couldn't get PPP2.

That doesn't sound right. So I have no idea.

[mililo4cpa]

Originally Posted by Buehler445

What I'd heard (not verified) was that if you had it forgiven you couldn't get PPP2.

That doesn't sound right. So I have no idea.

Yeah....my understanding, with next to no direct research, was that the first didn't impact the second, so long as you met the qualifications of the second.

So, regardless of what is going on with the first loan, you can still get the second so long as you meet the requirements.

With that said, I could see where if you didn't qualify for loan forgiveness the first time around (which basically means you didn't use it to cover labor costs), then why would they give you a second tranche? Just didn't know if that was the official position....

I do know that most of the clients that we're helping with the second PPP did get the first PPP, so what you say isn't the case (again, with no direct research). You should be able to get #2, again so long as you meet the qualifications to do so (p.s. second round is much more restrictive to smaller business and there is a loss demonstration).

[Mr. Plow]

I've had my paperwork ready to go for 6 months from the first round of PPP. We've offered it to the bank, but they don't want it yet - so mine still hasn't been "forgiven".

Just looked into the 2nd round of PPP to see if we qualify, and because of the "Experienced a 25% revenue reduction", I don't believe we qualify for it.

[dlphg9]

So did some reading just a bit ago about the SBAs rulings on the 2nd PPP loan. So if your loan is gonna be under $150,000 then you don't have to show a reduction in income.

[Mr. Plow]

Originally Posted by dlphg9

So did some reading just a bit ago about the SBAs rulings on the 2nd PPP loan. So if your loan is gonna be under $150,000 then you don't have to show a reduction in income.

Do you have a link to that by chance?

[IA_Chiefs_fan]

Originally Posted by dlphg9

So did some reading just a bit ago about the SBAs rulings on the 2nd PPP loan. So if your loan is gonna be under $150,000 then you don't have to show a reduction in income.

Here's a bit of clarification I found...

"In addition to not having to submit any documentation, for loans under $150k, you don’t have to provide documentation of the 25% reduction with the application. You just need to provide it at the time of applying for forgiveness."

[Buehler445]

So I got this from here.

Second-draw PPP loans
One of the biggest changes with the new PPP is that Congress made funding available to businesses that had previously received a PPP loan. Borrowers are eligible for a second-draw PPP loan of up to $2 million, provided they have:

-300 or fewer employees.

-Used or will use the full amount of their first PPP loan on or before the expected date for the second PPP loan to be disbursed to the borrower. The IFR also clarifies that the borrower must have spent the full amount of the first PPP loan on eligible expenses.

-Experienced a revenue reduction of 25% or more in all or part of 2020 compared with all or part of 2019. This is calculated by comparing gross receipts in any 2020 quarter with an applicable quarter in 2019, or, in a provision added in the IFR, a borrower that was in operation for all four quarters of 2019 can submit copies of its annual tax forms that show a reduction in annual receipts of 25% or greater in 2020 compared with 2019.
The Economic Aid Act did not provide a general definition of gross receipts for determining a borrower’s revenue reduction, so the new guidance makes the definition consistent with the definition of receipts in 13 C.F.R. Section 121.104 of SBA’s size regulations. Specifically, the IFR defines gross receipts to include all revenue in whatever form received or accrued (in accordance with the entity’s accounting method) from whatever source, including from the sales of products or services, interest, dividends, rents, royalties, fees, or commissions, reduced by returns and allowances. Forgiven first-draw PPP loans are not included in the 2020 gross receipts.

Am I reading this right, that if I have any quarter in 2020 that's less than the same quarter in 2019, I'm eligible for PPP2?