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O.city · 03-26-2020, 10:15 AM

Quote:

Originally Posted by SAUTO

is it better to apply directly through the SBA or your local bank after this bill passes?

She said that local banks aren't doing this yet, but no one seems to really know anything.

**Trivers** · 03-26-2020, 10:27 AM

Quote:

Originally Posted by SAUTO

is it better to apply directly through the SBA or your local bank after this bill passes?

The money is coming directly from the SBA for the EIDL loan. No banks.

**SAUTO** · 03-26-2020, 10:52 AM

Quote:

Originally Posted by Trivers

The money is coming directly from the SBA for the EIDL loan. No banks.

and thats different than the ones they say are coming available through this new bill?

**Trivers** · 03-26-2020, 11:06 AM

Quote:

Originally Posted by SAUTO

and thats different than the ones they say are coming available through this new bill?

Normally, SBA loans are done in partnership with a bank or CU; in case of the EIDL loans as part of these bills; $$ is processed, approved, and given by SBA.

**SAUTO** · 03-26-2020, 11:10 AM

Quote:

Originally Posted by Trivers

Normally, SBA loans are done in partnership with a bank or CU; in case of the EIDL loans as part of these bills; $$ is processed, approved, and given by SBA.

i'm pretty sure we are talking about 2 different loans.

sba loans say they will not be forgiven and directly from sba, the stimulus bill says they can be forgiven and come directly from your local bank

**Trivers** · 03-26-2020, 11:15 AM

[QUOTE=SAUTO;14869116]i'm pretty sure we are talking about 2 different loans.

It appears you may be right!!

The Small Business Administration, under the stimulus package, will oversee the Paycheck Protection Program, which will distribute $350 billion to small businesses that can be partially forgiven if the companies meet certain requirements. The loans will be available to companies with 500 or fewer employees.

https://www.marketwatch.com/story/he...ses-2020-03-26

• A $350 billion forgivable loan program designed to ensure that small businesses do not lay off employees

• A 50% refundable payroll tax credit on worker wages will further incentivize businesses, including ones with fewer than 500 employees, to retain workers

• Looser net operating loss-reduction rules that will allow businesses to offset more

• A delay in employer-side payroll taxes for Social Security until 2021 and 2022

• Sole proprietors and other self-employed workers could be eligible for the expanded unemployment-insurance benefits the bill provides

• A portion of the $425 billion in funds appropriated for the Federal Reserve’s credit facilities will target small businesses

How does the $350 billion small-business loan program work?
The Small Business Administration, under the stimulus package, will oversee the Paycheck Protection Program, which will distribute $350 billion to small businesses that can be partially forgiven if the companies meet certain requirements. The loans will be available to companies with 500 or fewer employees.

“The SBA loans strike a balance between loans on favorable terms and grants by providing forgiveness to firms that use loaned funds for payroll, rent, mortgage interest, and utility payments,” said Garrett Watson, senior policy analyst at the Tax Foundation, a Washington, D.C.-based think tank.

There is a risk that some small businesses will be left behind. They include those that do not have access to a regular line of credit, work with rapidly changing staffs, or do not have a close working relationship with a lender.— Stan Veuger, American Enterprise Institute resident scholar
This ensures that the firms “have skin in the game” while also giving businesses a better chance at surviving the pandemic, he said.

Loans will be administered by banks and other lenders, which American Enterprise Institute resident scholar Stan Veuger said “will hopefully speed up the process.”

Businesses can receive loans up to $10 million, based on how much the company paid its employees between Jan. 1 and Feb. 29. The loans will carry an interest rate up to 4%. The bill provides for an expedited origination process.

If the business uses the loan funds for the approved purposes and maintains the average size of its full-time workforce based on when it received the loan, the principal of the loan will be forgiven, meaning the company will only need to pay back the interest accrued.

**SAUTO** · 03-26-2020, 11:19 AM

Quote:

Originally Posted by Trivers

Interesting....

I've have not seen that loan info, and the SBA this AM did not make reference, do you have any info on these forgivable loans? thanks

well i watched the press conference where the head of finance laid it all out. other than that i posted what they said already

thats all i really got.

i think i'd wait until the stimulus bill gets finalized and see whats available then, but i guess that could be taking a risk that the sba runs out of money if that is the fall back.

03-26-2020, 11:15 AM	#7
Trivers Always ask 'Why?" Join Date: Oct 2011 Location: Two Rivers, Wisconsin	[QUOTE=SAUTO;14869116]i'm pretty sure we are talking about 2 different loans. It appears you may be right!! The Small Business Administration, under the stimulus package, will oversee the Paycheck Protection Program, which will distribute $350 billion to small businesses that can be partially forgiven if the companies meet certain requirements. The loans will be available to companies with 500 or fewer employees. https://www.marketwatch.com/story/he...ses-2020-03-26 • A $350 billion forgivable loan program designed to ensure that small businesses do not lay off employees • A 50% refundable payroll tax credit on worker wages will further incentivize businesses, including ones with fewer than 500 employees, to retain workers • Looser net operating loss-reduction rules that will allow businesses to offset more • A delay in employer-side payroll taxes for Social Security until 2021 and 2022 • Sole proprietors and other self-employed workers could be eligible for the expanded unemployment-insurance benefits the bill provides • A portion of the $425 billion in funds appropriated for the Federal Reserve’s credit facilities will target small businesses How does the $350 billion small-business loan program work? The Small Business Administration, under the stimulus package, will oversee the Paycheck Protection Program, which will distribute $350 billion to small businesses that can be partially forgiven if the companies meet certain requirements. The loans will be available to companies with 500 or fewer employees. “The SBA loans strike a balance between loans on favorable terms and grants by providing forgiveness to firms that use loaned funds for payroll, rent, mortgage interest, and utility payments,” said Garrett Watson, senior policy analyst at the Tax Foundation, a Washington, D.C.-based think tank. There is a risk that some small businesses will be left behind. They include those that do not have access to a regular line of credit, work with rapidly changing staffs, or do not have a close working relationship with a lender.— Stan Veuger, American Enterprise Institute resident scholar This ensures that the firms “have skin in the game” while also giving businesses a better chance at surviving the pandemic, he said. Loans will be administered by banks and other lenders, which American Enterprise Institute resident scholar Stan Veuger said “will hopefully speed up the process.” Businesses can receive loans up to $10 million, based on how much the company paid its employees between Jan. 1 and Feb. 29. The loans will carry an interest rate up to 4%. The bill provides for an expedited origination process. If the business uses the loan funds for the approved purposes and maintains the average size of its full-time workforce based on when it received the loan, the principal of the loan will be forgiven, meaning the company will only need to pay back the interest accrued. Last edited by Trivers; 03-26-2020 at 11:22 AM..
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