Small business loan

[Earl Weiss]

BUT! they just announced that any expenses in which the income was used for IS NOT DEDUCTIBLE. So if you paid employees qualifying wages out of that income, you can't write off that labor at the end of the year. So be very clear with the accounting!

I am thinking Congress may address this.

 

[KleanRide]

Got an email From SBA saying my EIDL app from early April is “in progress”.

 

[Dan-Ark]

So the bottom line is you either have to pay it back, or pay the taxes on the expenses it covered that allowed it to be forgiven. This is probably fair even though it may not meet the intent of congress. Dr Stewart, my economics professor at SFA in the 1970s, taught us that "There is no such thing as a free lunch" and I didn't believe the governments generosity when I heard about this program to begin with. In fact I'm thinking there will be Trillions of dollars in new and increased taxes coming soon. Glad I'm getting close to retirement. I only wish someone would plug a few hundred billion to prop up social security while they have those purse strings open. Not sure either side wants to tackle that one.

 

[Sequoia]

On May 1st I found $1,000 deposited in my account courtesy of SBA. And no notice from SBA about it?

Just fyi, on the day after seeing the $1k deposit, I got an email from SBA that included this:

"You are receiving this message as a notification that your Economic Injury Disaster Loan (EIDL) application is currently being processed in the order it was received. You will receive an email notification when there is a change to your application status "

 

[wyatt]

Just fyi, on the day after seeing the $1k deposit, I got an email from SBA that included this:

"You are receiving this message as a notification that your Economic Injury Disaster Loan (EIDL) application is currently being processed in the order it was received. You will receive an email notification when there is a change to your application status "

I got that same email, but no advance.

 

[aca carwash 2]

you can also get utilities and rent or mortgage interest as part of the grant.

Soapy that incorrect, the loan/grant is based 100% on payroll. You may use 25% of the loan/grant for those expenses you listed. Anymore than 25% goes to anything other than payroll the loan remains a loan, not a grant.

 

[soapy]

I am using 100% of mine for payroll. Notice I said PART of the grant not all of the grant in my post.

 

[Davidson]

Just fyi, on the day after seeing the $1k deposit, I got an email from SBA that included this:

"You are receiving this message as a notification that your Economic Injury Disaster Loan (EIDL) application is currently being processed in the order it was received. You will receive an email notification when there is a change to your application status "

I got that same email and found $1000 in my account. It doesn't say anything about being an advance. Should I assume that's what it is?

 

[soapy]

Updates I got a email on Memorial day from the SBA on my EIDL loan. Basically said they are out of funds for this program. I did see over the weekend that proceeds from the PPP program must be used by May 29 to qualify for a grant. This deadline was supposed to be extended but COngress could not agree on it before they took their break. Maybe when in session they will amend this but in the meantime use your own judgement.

 

[Greg Pack]

Just applied for one today when I found out I could use my own Schedule C income as a payroll figure. They calculate based on line 31 of your 2019 C plus employee payroll during that time. I'll let you guys know how it goes.

 

[Rfreeman]

I just got an email this morning from SBA on my other business that my EDIL was approved. Clicked on the link contained in the email filled out some additional information and received confirmation of my application was approved and should receive funds through electronic transfer....we will see???

 

[6t7gto]

Finally received 1k from the SBA

 

[slash007]

Finally received 1k from the SBA

today? I read they ran out of money. I was supposed to receive 3k, but haven't yet.

 

[6t7gto]

Received it 7/14/2020

 

[Earl Weiss]

Soapy that incorrect, the loan/grant is based 100% on payroll. You may use 25% of the loan/grant for those expenses you listed. Anymore than 25% goes to anything other than payroll the loan remains a loan, not a grant.

This has been updated. Now 60% of PPP must be used for payroll and 40% for other permitted items. You can also elect a 24 week payroll instead of 8 for what you paid out.

 

[Greg Pack]

Closed on mine last week. Being able to count The schedule C income made it worthwhile. I put all funds into a separate account for payroll.

 

[slash007]

Sucks that I don't qualify since I am an S-Corp with no schedule C. Otherwise it's definitely worthwhile.

 

[6t7gto]

I am an S-corp.

 

[slash007]

I am an S-corp.

That works for the advance, but not the PPP.

 

[Car_Wash_Guy]

Got the loan for all three of my LLC's. Pretty easy I must say and I was surprised how much I got for the wash