topic Re: Ppp question/help in Business Credit

Ppp question/help

longclimbback — Sat, 30 Jan 2021 00:57:25 GMT

Hello. I've seen some news articles and a few you tube videos on how self employed /sole proprietors can get a loan where some of the money becomes forgivable.

So anyone who knows, my questions are-

1. I use a small local bank with my business checking. There are no large banks near me. Where does one go on the national stage where a new customer won't get buried and can actually get a ppp loan done?

2. My payroll was $10800 in 2019 to 1 seasonal employee paid with a w2 from paychexx. They are currently working a different job. My business is in seasonal shutdown, so it would be a couple months before they're rehired. So how much loanable money is available from that?

3. My business profit on line 31 of schedule C was about $52k in 2019. So if I read a couple articles right, that should be worth $10-11 thousand that can be paid directly to me with most of it being forgiven. This part is what matters to me obviously, but I don't even know if I'm right in assuming this.

I don't use an accountant and don't personally know anyone small like me to ask. I don't mind doing some paperwork for 10k in free money, but don't want to waste my time for peanuts and I dont necessarily need the ppp money to restart my payroll when season starts.. Any help would be appreciated. Thanks

Re: Ppp question/help

jaxstraw — Sat, 30 Jan 2021 02:40:31 GMT

@longclimbback wrote:
Hello. I've seen some news articles and a few you tube videos on how self employed /sole proprietors can get a loan where some of the money becomes forgivable.
So anyone who knows, my questions are-
1. I use a small local bank with my business checking. There are no large banks near me. Where does one go on the national stage where a new customer won't get buried and can actually get a ppp loan done?
2. My payroll was $10800 in 2019 to 1 seasonal employee paid with a w2 from paychexx. They are currently working a different job. My business is in seasonal shutdown, so it would be a couple months before they're rehired. So how much loanable money is available from that?
3. My business profit on line 31 of schedule C was about $52k in 2019. So if I read a couple articles right, that should be worth $10-11 thousand that can be paid directly to me with most of it being forgiven. This part is what matters to me obviously, but I don't even know if I'm right in assuming this.
I don't use an accountant and don't personally know anyone small like me to ask. I don't mind doing some paperwork for 10k in free money, but don't want to waste my time for peanuts and I dont necessarily need the ppp money to restart my payroll when season starts.. Any help would be appreciated. Thanks

https://lanterncredit.com/small-business/ppp-online-lender-list

These are national lenders who participate in the PPP and aren't banks.

I'd ignore thrones that say 'matches borrowers to lenders' and choose one that does the lending directly ( Bluevine, PayPal, Biz2Credit, etc)

Once you pick a lender the prompts to fill in an application are relatively easy for a small operation such as yours.

No reason to be intimidated.

The application process basically walks you through your questions as you fill it out.

Re: Ppp question/help

sccredit — Mon, 01 Feb 2021 18:21:12 GMT

There are a few nuances. The calculation would be your seasonal employee + your Net Income divided by 12 times 2.5 = loan amount. So in your case that would be $10k + $52k = $62k. Divide that by 12 = $5,166 times 2.5 = $12,916 loan amount.

I've had pretty good luck with Cross River Bank. I've used them for client loans ranging from $10k - $150k and their automated process is pretty smooth.

Re: Ppp question/help

longclimbback — Wed, 03 Feb 2021 01:07:25 GMT

As an update I applied today through the cross river bank that sccredit mentioned. I thought their website on ppp was the best. It was pretty easy to do and took about 2 hours to fill out and upload the docs. Its currently under review so I'll update when I hear back.

As a side note the lender match on the sba site came back after 2 days with no takers. Thanks for the help

Re: Ppp question/help

jaxstraw — Wed, 03 Feb 2021 01:26:04 GMT

@longclimbback wrote:
As an update I applied today through the cross river bank that sccredit mentioned. I thought their website on ppp was the best. It was pretty easy to do and took about 2 hours to fill out and upload the docs. Its currently under review so I'll update when I hear back.

As a side note the lender match on the sba site came back after 2 days with no takers. Thanks for the help

Good luck. Follow the rules for how to spend the proceeds of the loan and forgiveness is a breeze.

Re: Ppp question/help

longclimbback — Fri, 05 Feb 2021 20:38:41 GMT

My loan was approved by the sba. So crossriver bank did a great job submitting my application. 3 days from submitting to approved. So far I would recommend them for anyone else looking for a lender .

Re: Ppp question/help

sccredit — Fri, 05 Feb 2021 21:56:35 GMT

@longclimbback wrote:
My loan was approved by the sba. So crossriver bank did a great job submitting my application. 3 days from submitting to approved. So far I would recommend them for anyone else looking for a lender .

Congrats. From my experience it will take about 10 days to get documents and then 48 hours later it will fund.

Re: Ppp question/help

longclimbback — Mon, 08 Feb 2021 19:18:49 GMT

So I got the loan documents this morning. I open them up to do the signing and there's a 4506-t request in there. I haven't seen or read about that anywhere in the process or requirements. My issue is I filed an extension on my 2019 taxes and submitted them in October. The check i sent was cashed but they still haven't processed the return yet when I get on my IRS page. I've read a couple news articles where there are still a million or more unprocessed returns from last year because of covid. So the 4506-t is gonna comeback unfilled. Any thoughts? Thanks

Re: Ppp question/help

Anonymous — Tue, 23 Feb 2021 06:56:16 GMT

@longclimbback What happened with your loan? Did you submit the 4506-t? What are the initial docs they asked for when applying for PPP loan? I just want to make sure I have all of my documents ready. Thank

Re: Ppp question/help

longclimbback — Tue, 23 Feb 2021 12:57:40 GMT

I did submit the 4506. I read somewhere that the 4506 has to be submitted within a certain period of time and that the government had time to respond. I figured my returns may be processed by then. Hard to say though since I read an article that there are millions of unprocessed returns from last year. After submitting, I got my loan documents and closed. I don't know if the funds have been deposited. I use a bank with no electronic banking. Rather than call every day, I had the restraint to just wait until I get my statement on the 1st and hope for a surprise deposit. Today is 10 days since the closing so with no news otherwise, I'm assuming the money is there.

I saw some you tube videos on changes that went into effect on the ppp program yesterday. It appears that for the next 2 weeks only businesses with 20 or less employees can apply. Also gross income can now be used to figure the loan amount which might give people more money and draws 1 and 2 can be applied for at the same time and concurrently through a quick access portal. Not sure if its up and running yet, but if you haven't applied already, you may want to wait until these new items are implemented. I honestly am hoping mine is still processing and I can reapply under the new terms. My line 31 amount was lower due to some equipment purchased and I think I'd be due more money with the new guidelines. I also would be eligible for draw 2 if there is no longer a waiting period from receiving draw 1. The videos promised more sba guidance coming soon. I'm sure it will turn into more of a crapshoot if millions can reapply under different terms.

Re: Ppp question/help

Anonymous — Tue, 23 Feb 2021 15:11:06 GMT

That's great! I think your funds should be deposited by now. I've heard they're pretty quick when it comes to depositing funds. What was the reason they asked for the 4506? What specific documents do I need to prepare?

Re: Ppp question/help

longclimbback — Tue, 23 Feb 2021 18:38:05 GMT

The 4506 request is supposedly a requirement for all ppp loans but it was not listed on the crossriver river requirements at the time. I've read since then that some people say they didn't have to fill it out so it may be lender specific. IDK for sure.

I've watched 3 different you tube videos this morning that show when these new guidelines come out the ppp loan amount will be based on the line 7 amount on schedule c. Before it was line 31. So $100,000 in gross sales will net a max $20833 ppp loan for owner compensation. It sounds far fetched to me that they could give away that much more money as there are probably millions of small guys like me that were way over 100,000 in sales but insurance, vehicle, interest, equipment purchases etc. drop line 31 down. I won't spend the money yet, but I certainly look forward to my $13000 loan possibly becoming $23000. And it also inspired me to start on my 2020 taxes way earlier than normal and I now know I qualify for ppp round 2 as I had a 25% drop in deposit receipts in 2 different quarters last year. You only need 1 quarter to be eligible for round 2. So maybe I can figure out round 2 paperwork and get some more forgivable funding.

Re: Ppp question/help

601flyguy — Wed, 24 Feb 2021 14:28:54 GMT

Can you provide a link that shows ppp amount will be calculated using line 7 instead of 31?? And what about businesses that received ppp using line 31? Are they now eligible for more? How would they go about getting it?

@longclimbback wrote:
The 4506 request is supposedly a requirement for all ppp loans but it was not listed on the crossriver river requirements at the time. I've read since then that some people say they didn't have to fill it out so it may be lender specific. IDK for sure.
I've watched 3 different you tube videos this morning that show when these new guidelines come out the ppp loan amount will be based on the line 7 amount on schedule c. Before it was line 31. So $100,000 in gross sales will net a max $20833 ppp loan for owner compensation. It sounds far fetched to me that they could give away that much more money as there are probably millions of small guys like me that were way over 100,000 in sales but insurance, vehicle, interest, equipment purchases etc. drop line 31 down. I won't spend the money yet, but I certainly look forward to my $13000 loan possibly becoming $23000. And it also inspired me to start on my 2020 taxes way earlier than normal and I now know I qualify for ppp round 2 as I had a 25% drop in deposit receipts in 2 different quarters last year. You only need 1 quarter to be eligible for round 2. So maybe I can figure out round 2 paperwork and get some more forgivable funding.

Re: Ppp question/help

sccredit — Wed, 24 Feb 2021 16:07:35 GMT

@601flyguy wrote:
Can you provide a link that shows ppp amount will be calculated using line 7 instead of 31?? And what about businesses that received ppp using line 31? Are they now eligible for more? How would they go about getting it?
@longclimbback wrote:
The 4506 request is supposedly a requirement for all ppp loans but it was not listed on the crossriver river requirements at the time. I've read since then that some people say they didn't have to fill it out so it may be lender specific. IDK for sure.
I've watched 3 different you tube videos this morning that show when these new guidelines come out the ppp loan amount will be based on the line 7 amount on schedule c. Before it was line 31. So $100,000 in gross sales will net a max $20833 ppp loan for owner compensation. It sounds far fetched to me that they could give away that much more money as there are probably millions of small guys like me that were way over 100,000 in sales but insurance, vehicle, interest, equipment purchases etc. drop line 31 down. I won't spend the money yet, but I certainly look forward to my $13000 loan possibly becoming $23000. And it also inspired me to start on my 2020 taxes way earlier than normal and I now know I qualify for ppp round 2 as I had a 25% drop in deposit receipts in 2 different quarters last year. You only need 1 quarter to be eligible for round 2. So maybe I can figure out round 2 paperwork and get some more forgivable funding.
@longclimbback wrote:
The 4506 request is supposedly a requirement for all ppp loans but it was not listed on the crossriver river requirements at the time. I've read since then that some people say they didn't have to fill it out so it may be lender specific. IDK for sure.
I've watched 3 different you tube videos this morning that show when these new guidelines come out the ppp loan amount will be based on the line 7 amount on schedule c. Before it was line 31. So $100,000 in gross sales will net a max $20833 ppp loan for owner compensation. It sounds far fetched to me that they could give away that much more money as there are probably millions of small guys like me that were way over 100,000 in sales but insurance, vehicle, interest, equipment purchases etc. drop line 31 down. I won't spend the money yet, but I certainly look forward to my $13000 loan possibly becoming $23000. And it also inspired me to start on my 2020 taxes way earlier than normal and I now know I qualify for ppp round 2 as I had a 25% drop in deposit receipts in 2 different quarters last year. You only need 1 quarter to be eligible for round 2. So maybe I can figure out round 2 paperwork and get some more forgivable funding.

New guidelines from the SBA are not out yet with the changes in calculation. Hopefully they are expedited.