Stream Lined - SBA loan application , New SBA Paycheck Protection Loan, Restaurant Worker Aid

[easyrider]

@easyrider Thanks for posting all of this info in one place. We applied for EIDL for both businesses last week. Still trying to figure out PPP app. Some thoughts:

1) On the $1000 per employee it says if you hire 1099s then you can get money for them as well. However I didn't see a space to put that. Hope we are not losing out?


2) They say you can get advance for vacation rental properties, however we had to put 0 for employees. I hope this doesn't get us denied the advance.


3) Has anyone seen good summary requirements and limits for rolling EIDL loans into PPP? I would like to take EIDL then roll into PPP to get the 1% interest to pay non-payroll expenses but not sure of the limitations.

The EDIL is different than the PPP because you can add people not on the payroll. In your case you should have added yourself at the very least. I'm not sure how it works if you filled the application as 0 employees. Many realtors I know included themselves for at least 1 employee on the application. Many include their spouse if they help out.

Bill

 

[CalGalTraveler]

Perhaps I messed up the app up for the rental. The rental would be 2 (spouse and me) who work on the rental. I asked my accountant but perhaps he was looking at this too technically because sole proprietors are 0. It said "certify under perjury" so the girl scout in me filled it out to be 0. I hope they call me to clarify.

FWIW.. I just listened to another video by the guy posted earlier and he said he had 2 businesses and only got advance for the S Corp. He thought it was logical that they would give an advance only once per social security number. So perhaps we are okay since our S Corp has employees.

 

[easyrider]

Perhaps I messed the app up for the rental. The rental would be 2 (spouse and me). I asked my accountant but perhaps he was looking at this too technically because sole proprietors are 0. It said "certify under perjury" so the girl scout in me filled it out literally. I hope they call me to clarify.

FWIW.. I just listened to another video by the guy posted earlier and he said he had 2 businesses and only got advance for the S Corp. He thought it was logical that they would give an advance only once per social security number. So perhaps we are okay since the S Corp has employees.

If you submitted the EDIL app twice, for two separate businesses, and used the same SS numbers, then the app listing the employee number at other than 0 should get you a check, imo.

Supposedly, all who submit the app for EDIL can receive an addition $15,000 loan if they want it. I think after the first $15,000 they are lending up to 2 million per business.

Bill

 

[CalGalTraveler]

Apparently there is a loophole for restaurants and hotels over 500 employees to get the money. Do you hear that sucking sound? That the big restaurant and hotels hoovering up the budget meant for small businesses because the banks are prioritizing them first in line. Small businesses get screwed again.

Ruth’s Chris Steak House Gets $20 Million From Coronavirus Aid Program

The high-end dining chain is among the first public companies to disclose it has received a government-backed loan to support payroll, days after the $350 billion program to aid small businesses started taking applications.

www.wsj.com

 

[CalGalTraveler]

It sounds like the PPP is out of money for now. Should I still bother to apply for the PPP? or wait until it gets funded?

Small-Business Aid Program Set to Run Out of Money

A program designed to back workers’ paychecks has exhausted most of its funding, ramping up pressure on congressional Democrats and Republicans aligned with the White House to reach a deal on the next round of economic aid.

www.wsj.com

 

[dioxide45]

Apparently there is a loophole for restaurants and hotels over 500 employees to get the money. Do you hear that sucking sound? That the big restaurant and hotels hoovering up the budget meant for small businesses because the banks are prioritizing them first in line. Small businesses get screwed again.

Ruth’s Chris Steak House Gets $20 Million From Coronavirus Aid Program

The high-end dining chain is among the first public companies to disclose it has received a government-backed loan to support payroll, days after the $350 billion program to aid small businesses started taking applications.

www.wsj.com

Here is the story without a paywall.

Ruth's Chris Steak House receives $20M in coronavirus relief

The company, like so many others, had to curtail operations at locations across the nation to limit the economic fallout created by the pandemic.

www.foxbusiness.com

These articles always lack so many details. Remember, many big chains are made up of small independant franchisees. Outback Steakhouse may not be a small business, but the business that the owner setup to buy a franchise and operate likely is. Why is the local Outback Steakhouse not eligible for loans when the same independant steakhouse across the street is?

 

[TravelTime]

It sounds like the PPP is out of money for now. Should I still bother to apply for the PPP? or wait until it gets funded?

Small-Business Aid Program Set to Run Out of Money

A program designed to back workers’ paychecks has exhausted most of its funding, ramping up pressure on congressional Democrats and Republicans aligned with the White House to reach a deal on the next round of economic aid.

www.wsj.com

I would apply now so you are in the queue. I would hope they will take people in order of the application date.

 

[CalGalTraveler]

Ruth Chris Hospitality Group (RUTH) has more than 5000 employees with company owned stores. Franchisees would apply separately because those are separate business entities. These loans are intended to be small business loans less than 500 employees except for this loophole. Chase already had a large debt position with Ruth so Chase likely realized this could be a bailout on bad loans so they prioritized the PPP loan higher than Sam's Barber Shop.

Now there is no money for Sam's Barber Shop. Smells rotten to me.

Here is another article. Now big companies are lobbying to divert the PPP money to pay franchise fees and mortgages instead of workers.

Large hotel, restaurant companies getting small-business loans want to spend less of the money paying workers

The Pennsylvania investment firm that owns the Ritz-Carlton Coconut Grove in Miami has applied for as many as 48 taxpayer-backed loans under an emergency program meant to help the nation’s sm…

www.orlandosentinel.com

 

[CalGalTraveler]

Here is someone who applied for PPP the first few days with BofA and Chase.

Payroll Protection Program Problems: Applications Were Never Looked At!

I had a ton of payroll protection program problems impacting my small business. The main issue was the big banks simply never processed my application!

milestomemories.com

 

[CalGalTraveler]

FYI...Crowdsourced Poll on the state of covid SBA loan and grant payouts.

COVID Loan Tracker — COVID Loan Tracker

COVID Loan Tracker is a community of 40,000+ small business owners reporting across all 50 states. Launched by two small business owners, we started with the mission to help inform other entrepreneurs with PPP and EIDL.

www.covidloantracker.com

 

[simpsontruckdriver]

I have a friend who is a small business owner. She applied, and yes, BIG BUSINESSES took a portion of it, and many small businesses lost out. She has laid off her entire staff, but like many, will re-hire once the economy gets back on the mend.

TS

 

[TravelTime]

Ruth’s Chris Steak House got $20 million, double the max. They applied with 2 subsidiaries.

 

[easyrider]

So if you missed the first EDIL for any reason the SBA will be funding this again soon. If your application had the wrong info such as not including yourself as an employee it might be a good idea to fill out another with the right amount of employes's. The funding finally passed today and President Trump will likely sign off very soon so the SBA site should be up and running taking apps very soon.

The first EDIL lasted about 2 1/2 weeks is what I have read. This new funding will likely be gone in a few days.

Bill

 

[Luanne]

Ruth’s Chris Steak House got $20 million, double the max. They applied with 2 subsidiaries.

Read that they are giving it back.

 

[easyrider]

Read that they are giving it back.

I read that too. I guess that for most large companies it doesn't make sense to participate in the PPP because their employees would benifit less in the PPP than letting them collect the CARES Act unemployment benifit of $600 a week which is addition to their regular state unemployment benifit. I'm pretty sure they and other large companies are giving it back in their own self interest.

Bill

 

[TravelTime]

Read that they are giving it back.

I read that too yesterday. I think they had too much negative publicity. The joke was you could only get the PPP if you sell steaks.

 

[caribbeanqueen]

We put our application in for the next round
The question we and others have is what happens if we are not allowed to open after the 8 weeks? Do our employees go back on unemoyment? No one seems to know the answer. Also, if they do does that affect the forgiveness of the loan?

 

[TravelTime]

We put our application in for the next round
The question we and others have is what happens if we are not allowed to open after the 8 weeks? Do our employees go back on unemoyment? No one seems to know the answer. Also, if they do does that affect the forgiveness of the loan?

As I understand, you will get forgiveness if you maintain your payroll (not reducing by more than 25%) and number of full time employees for 8 weeks. After that, you can lay people off.

 

[easyrider]

It looks like the SBA has updated their website. The EIDL program applications should show up again tomorrow morning but if you are wanting to apply then check back this afternoon and this evening. Get on it fast because this funding is limmited.

The Cares act umemployment funds are now working. The way it seems to work for most is you apply through the state unemployment portal where you live. You can be a sole proprietor , business person or private person that hasn't paid into the state program and would not qualify and still recieve a small state benifit as well as the Federal benifit. From what I have heard is that a business person that is eligible through the Cares Act will recieve the smaller state benifit for many weeks and after a couple of weeks they recieve the Federal amount in addition to the state amount. For many people this amount would look like $225 state for a couple of weeks, then $825 for six weeks and then $225 until its finished for a total of over 20 weeks.

Bill

COVID-19 relief options | U.S. Small Business Administration

www.sba.gov

 

[dioxide45]

It looks like the SBA has updated their website. The EIDL program applications should show up again tomorrow morning but if you are wanting to apply then check back this afternoon and this evening. Get on it fast because this funding is limited.

I suspect they are holding out on new applications waiting to figure out if existing applications still in the pipeline outstrip the second round of appropriations. It is possible that there may not be a second round of applications.

 

[presley]

What I saw today:
/Funding Programs/Loans/Coronavirus Relief Options/Economic Injury Disaster Loan Emergency Advance
Economic Injury Disaster Loan Emergency Advance
This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.
Content

• Notice: Lapse in Appropriations
• Overview
• Eligibility
• Additional Program Information

Notice: Lapse in Appropriations
SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.
Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

 

[dioxide45]

What I saw today:
/Funding Programs/Loans/Coronavirus Relief Options/Economic Injury Disaster Loan Emergency Advance
Economic Injury Disaster Loan Emergency Advance
This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.
Content

• Notice: Lapse in Appropriations
• Overview
• Eligibility
• Additional Program Information

Notice: Lapse in Appropriations
SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.
Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.

That looks like the old message. It was updated over Friday night into Saturday;

Coronavirus (COVID-19)

SBA Disaster Assistance in Response to the Coronavirus

www.sba.gov

Notice: Additional Economic Injury Disaster Loan Funding
With the additional funding provided by the new COVID-19 relief package, SBA will resume processing EIDL Loan and Advance applications that are already in the queue on a first come, first-served basis.
We will provide further information on the availability of the EIDL portal to receive new applications (including those from agricultural enterprises) as soon as possible.

Basically seems to say that they are looking at existing applications in the pipeline and if there are still appropriations left, they will open for new applications.

 

[CalGalTraveler]

Do you think we need to reapply or are they still working through existing applications from the last round?

 

[easyrider]

I suspect they are holding out on new applications waiting to figure out if existing applications still in the pipeline outstrip the second round of appropriations. It is possible that there may not be a second round of applications.

I think you are right. I checked last night and just now for the application. There is no EIDL application on the SBA website yet.

Bill

 

[easyrider]

Do you think we need to reapply or are they still working through existing applications from the last round?

There is no application available to apply on the SBA website as of now. It is very posible that there will be no new applications because the SBA seems to be working on these as they came in which seems fair.

Bill