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

[O.city]

Originally Posted by mililo4cpa

the banks are responsible for "underwriting" the PPP Loan (I use "underwriting" loosely, because they are ....I would think that they would be able to verify the existence of the business prior to the date requirement.

This is unchartered waters for me, and probably one of those details that nobody really thought about in the heat of the moment.

I would hope common sense and logic would dictate that those people were employed before, and you're trying to keep them employed during and afterwards....

If I can find an answer for you, I'll post....

Thanks man I appreciate it

[mililo4cpa]

Originally Posted by O.city

Thanks man I appreciate it

I keep going through the bill over and over, looking for something that either helps or hurts your cause. I certainly didn't see anything that hurts your cause, but the help side isn't really definitive.

So, I'm going to speculate a little bit here:
in the "definitions" section of the PPP, it states "the term ‘eligible recipient’ means an individual or entity that is eligible to receive a covered loan"....I would think that the business entity itself meets this requirement, as you are filing on behalf of the business....

Later on (after reading through much legal mumbo jumbo), there is a "Considerations" section that states
"In evaluating the eligibility of a borrower for a covered loan with the terms described in this paragraph, a lender shall consider whether the borrower—(aa) was in operation on February 15, 2020; and (bb)(AA) had employees for whom the borrower paid salaries and payroll taxes; or (BB) paid independent contractors, as reported on a Form 1099–MISC.

Again, if I'm evaluating looking at it as an eligilble business entity as the borrower, and that entity was in existence before Feb 15th, and had employees who were paid salaries and payroll, then it'd fit.

Nothing I'm saying above is definitive, but again, my gut is that you'll be able to include that location in with your loan app....talk with your banker for sure, because, again, it wouldn't make sense to not fund that portion, which means (likely) people are out of work)...

[O.city]

Originally Posted by mililo4cpa

I keep going through the bill over and over, looking for something that either helps or hurts your cause. I certainly didn't see anything that hurts your cause, but the help side isn't really definitive.

So, I'm going to speculate a little bit here:
in the "definitions" section of the PPP, it states "the term ‘eligible recipient’ means an individual or entity that is eligible to receive a covered loan"....I would think that the business entity itself meets this requirement, as you are filing on behalf of the business....

Later on (after reading through much legal mumbo jumbo), there is a "Considerations" section that states
"In evaluating the eligibility of a borrower for a covered loan with the terms described in this paragraph, a lender shall consider whether the borrower—(aa) was in operation on February 15, 2020; and (bb)(AA) had employees for whom the borrower paid salaries and payroll taxes; or (BB) paid independent contractors, as reported on a Form 1099–MISC.

Again, if I'm evaluating looking at it as an eligilble business entity as the borrower, and that entity was in existence before Feb 15th, and had employees who were paid salaries and payroll, then it'd fit.

Nothing I'm saying above is definitive, but again, my gut is that you'll be able to include that location in with your loan app....talk with your banker for sure, because, again, it wouldn't make sense to not fund that portion, which means (likely) people are out of work)...

That’s how I understand it. We incorporated the business after we purchased but it’s still the same entity it was before

[Buehler445]

Originally Posted by Trivers

Morning!

Good article from Inc:

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

Good read, thanks.

So tomorrow I douche my banker with loan applications huh?

Originally Posted by O.city

That’s how I understand it. We incorporated the business after we purchased but it’s still the same entity it was before

Nah, once you create a corporation it is legally separate from management and shareholders, which is the point.

But you might be able to convince somebody to use the historical information because you didn't change procedures or personnel. Definitely try it. Hopefully they'll apply some common sense here, but it looks like there are ways to bone you on account of shitty timing. Hopefully they work with some common sense.

Whatever happens with the payroll, you should (according to my very limited understanding) be eligible for overhead relief.

[O.city]

Originally Posted by Buehler445

Good read, thanks.

So tomorrow I douche my banker with loan applications huh?



Nah, once you create a corporation it is legally separate from management and shareholders, which is the point.

But you might be able to convince somebody to use the historical information because you didn't change procedures or personnel. Definitely try it. Hopefully they'll apply some common sense here, but it looks like there are ways to bone you on account of shitty timing. Hopefully they work with some common sense.

Whatever happens with the payroll, you should (according to my very limited understanding) be eligible for overhead relief.

Yeah, apparently there are some extenuation circumstance stuff in there. So here's to hope.