Ppp question/help

[longclimbback]

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

[jaxstraw]

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@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

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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.

[sccredit]

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.

[longclimbback]

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 

[jaxstraw]

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@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 

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

[longclimbback]

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 .

[sccredit]

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@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 .

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

[longclimbback]

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

[Anonymous]

@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

[longclimbback]

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.