Author Topic: COVID-19 SBA loans  (Read 204 times)

Drastic

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COVID-19 SBA loans
« on: April 02, 2020, 11:13:04 PM »
So the small business stimulus seems pretty solid on first look. 2.5x for average monthly payroll from last year, including subs and commissions. Also covers rent, utils and mortgage interest for loans. Will turn into a grant if used for things listed above within 8 weeks. Cannot have payroll reduction or lose employees, though they can be replaced, to be fully forgiven.

Also, 10k grants are on the table as well as loans up to 2 million at 3.75, 10 yr note.

https://www.forbes.com/sites/brockblake/2020/04/01/paycheck-protection-loans/

File quickly as there is a cap. Begins tomorrow April 3. Opens up to independent contractors on April 10. Call your bank to see if they can apply and process the loan for you. They do this at no cost end to end. Here is a list of top 100 participating banks:
https://www.sba.gov/article/2020/mar/02/100-most-active-sba-7a-lenders

littleman

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Re: COVID-19 SBA loans
« Reply #1 on: April 02, 2020, 11:33:01 PM »
Thanks for the info there Dras, any idea on what's available for a sole-proprietorship that works out of his house and has zero employees?

Drastic

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Re: COVID-19 SBA loans
« Reply #2 on: April 02, 2020, 11:46:32 PM »
"Note that payroll does include independent contractors, as well as all types of compensation including salaries, wages, commissions, healthcare and insurance premiums."

If you pay yourself or anyone else, and if you pay rent for stock or storage or anything like that, it should apply. (Maybe back charge stock storage at your home if needed.)

littleman

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Re: COVID-19 SBA loans
« Reply #3 on: April 02, 2020, 11:59:15 PM »
Thanks Dras, will dig into it!

littleman

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Re: COVID-19 SBA loans
« Reply #4 on: April 04, 2020, 04:25:54 AM »
I split this off into its own topic. 

Here is a PDF information sheet,

It is somewhat confusing; check out this quote:

Quote
Starting April 3, 2020, small businesses and sole proprietorships can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

Starting April 10, 2020, independent contractors and self-employed individuals can apply for and receive loans to cover their payroll and other certain expenses through existing SBA lenders.

In my mind sole proprietorships and self-employed individuals are the same thing.

Mackin USA

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Re: COVID-19 SBA loans
« Reply #5 on: April 05, 2020, 11:00:22 AM »
Best man at our wedding writes:

Yes, things are a mess in the travel/tourism industry.  I'm just glad I'm not up in Anaheim between Disneyland, the convention center and Angel Stadium, all of which are closed UFN.  To give you some idea of what's going on at Bay Shores, the answer is not much, but it could be worse.  I decided to stay open and cover the cash-flow deficits while most of the other beach hotels have closed, laying off all their employees. If we can maintain some level of occupancy I can't in good conscience lock the doors and lay off all my loyal & trusted employees.  I've applied for some SBA stimulus money which will cover some of the shortfall, which would be nice if it's approved.  We'll see,  Hopefully they'll lift this stay-at-home stuff and get folks moving around soon...  Say hi to Ruth Ann for me.     ---Fred

Mr. Mackin

littleman

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Re: COVID-19 SBA loans
« Reply #6 on: Today at 02:23:29 AM »
Four types of Coronavirus Relief Loans:


Paycheck Protection Program
This loan program provides loan forgiveness for retaining employees by temporarily expanding the traditional SBA 7(a) loan program.

SBA Debt Relief
The SBA is providing a financial reprieve to small businesses during the COVID-19 pandemic.

SBA Express Bridge Loans
Enables small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.

Economic Injury Disaster Loan Emergency Advance (EIDL Loan Advance)
This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.

EIDL Loan Advance seems to be the one that most will have the easiest qualifying for.
Quote
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.