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      04-03-2020, 09:56 PM   #1
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SBA PPP loan thread

So we have had the news now for a week that this is coming our way. I spent some time on the phone with a nice lady at the SBA yesterday that helped clear up what I needed to know about the loan, and how to get it. It only took an hour to work through the 975 callers in front of me. (I told her that, and she said Monday the queue was 8000 people deep!) In any case, my bank has not turned loose the application process yet, despite the fact that there are many other banks that have. If you are a small business owner, and have managed to get the application done and loan processed, please tell us your timeline and which bank you used to facillitate the loan, type of business, and number of employees on payroll. I think it might be interesting to compare notes at the end of this, and see which banks performed the best and worst. I am wondering if there will be a correlation between size of business, number of affected employees and bank used with the speed at which the money hits your account. Please join in with your info if you are in similar shoes.

Business type- restaurant
Number of employees- 38
Bank- Wells Fargo
Application submission date-4/4
I got the dough-TBD

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      04-03-2020, 10:29 PM   #2
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I haven’t done anything with PPP yet because I don’t really understand how it works for sole proprietors or if it does. I did fill out an EIDL application on the SBA website today but didn’t even get an email acknowledging it was received so I’ll wait until early next week to figure out next steps.

The PPP program sounds like a winner for small businesses with employees if you can get through the application process. I read today that most banks weren’t ready for it so that’s not a great start. BOA says 85K businesses applied for $22 billion through them today.
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      04-03-2020, 10:48 PM   #3
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I hear you, Rick, it has NOT been easy to find out exactly what needed to be accomplished in order to get this thing done. I would have thought there would be GREAT BIG letters on the SBA website leading us in the right direction. We are an S-corp, so I do not know what the benefits are for sole proprietors.

I also did the EIDL loan app, last Saturday. When I submitted it, I did not receive an email either, nor have I since. I did print the confirmation page upon app completion, and gave that number to the lady at SBA yesterday. She said that it was correct that I did not receive an email, but that my loan was in the works. The EIDL app asked if I wanted a $10k advance, which of course I checked the box for. When speaking with the SBA, she told me that ONLY the $10k was forgiveable, the rest would be a long term loan. Heads up if you were not aware. I wasn't.

I imagine next week will be a little smoother than today was. Crazy number for BofA! Monday is gonna be something if all the other banks get it together.
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      04-03-2020, 10:53 PM   #4
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Thanks for letting me know you didn’t get an email either. I also have the confirmation page so we’ll see how that goes.

I thought these were 2 separate programs and the PPP was also forgivable if you met certain criteria (such as keeping people on payroll). I guess that’s not the case but I still plan to look into it further.

Hope the EIDL and loan work out for you. Gonna be bumpy for a while.
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      04-03-2020, 11:01 PM   #5
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Yes, please let me know if/when you hear about the EIDL.

And yes, the PPP is forgiveable provided we use it for payroll, utilities, or rent on our building, and do not have a substantial loss of employees before September, (I think Sept...) It will cover 8 weeks from loan origination date for the forgiveable portion, and provided we show proof of how we spent it, it should be forgiven. Neat thing about the EIDL $10k is that the money can be spent on pretty much anything in order to keep the business going until PPP hits. A little band aid.

Stay safe, and wishing you and your business the best!
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      04-04-2020, 12:04 AM   #6
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I applied for both. I was lucky to get through on the BoA website in the first hour today for the PPP. I didn't get any email confirmations from either program, only the confirmation number for the EIDL.

I'm an S-Corp and I pay myself as an employee, so my monthly payroll was quite good for only having four employees including myself.
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      04-04-2020, 12:24 AM   #7
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Quote:
Originally Posted by hubbahubba View Post
Yes, please let me know if/when you hear about the EIDL.

And yes, the PPP is forgiveable provided we use it for payroll, utilities, or rent on our building, and do not have a substantial loss of employees before September, (I think Sept...) It will cover 8 weeks from loan origination date for the forgiveable portion, and provided we show proof of how we spent it, it should be forgiven. Neat thing about the EIDL $10k is that the money can be spent on pretty much anything in order to keep the business going until PPP hits. A little band aid.

Stay safe, and wishing you and your business the best!
It's up until June 30th
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      04-04-2020, 12:27 AM   #8
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If you take your monthly average of your payroll, utilities, insurance, rent, mortgage interest from previous 12 months and multiple that by 2.5. That's a ball park of how much you'll be eligible for.

If spent on the items listed above, up until June 30th, all can be forgiven. Whatever isn't spent gets applied to a 10 year loan at 4%
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      04-04-2020, 11:24 AM   #9
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Quote:
Originally Posted by Spgm5 View Post
Quote:
Originally Posted by hubbahubba View Post
Yes, please let me know if/when you hear about the EIDL.

And yes, the PPP is forgiveable provided we use it for payroll, utilities, or rent on our building, and do not have a substantial loss of employees before September, (I think Sept...) It will cover 8 weeks from loan origination date for the forgiveable portion, and provided we show proof of how we spent it, it should be forgiven. Neat thing about the EIDL $10k is that the money can be spent on pretty much anything in order to keep the business going until PPP hits. A little band aid.

Stay safe, and wishing you and your business the best!
It's up until June 30th
Hi spgm5. Thanks for joining in. I am curious as to where you got the info re June 30? Everything I have read and been told is that it is 8 weeks from loan origination date.
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      04-04-2020, 11:26 AM   #10
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Originally Posted by DocL View Post
I applied for both. I was lucky to get through on the BoA website in the first hour today for the PPP. I didn't get any email confirmations from either program, only the confirmation number for the EIDL.

I'm an S-Corp and I pay myself as an employee, so my monthly payroll was quite good for only having four employees including myself.
Hi Doc. Thanks for sharing your experience. Did they say when you should be funded?
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      04-04-2020, 11:48 AM   #11
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Quote:
Originally Posted by hubbahubba View Post
Quote:
Originally Posted by Spgm5 View Post
Quote:
Originally Posted by hubbahubba View Post
Yes, please let me know if/when you hear about the EIDL.

And yes, the PPP is forgiveable provided we use it for payroll, utilities, or rent on our building, and do not have a substantial loss of employees before September, (I think Sept...) It will cover 8 weeks from loan origination date for the forgiveable portion, and provided we show proof of how we spent it, it should be forgiven. Neat thing about the EIDL $10k is that the money can be spent on pretty much anything in order to keep the business going until PPP hits. A little band aid.

Stay safe, and wishing you and your business the best!
It's up until June 30th
Hi spgm5. Thanks for joining in. I am curious as to where you got the info re June 30? Everything I have read and been told is that it is 8 weeks from loan origination date.
Sorry I should have been more specific. The "forgiveness" amount of your loan will be determined by your expenditure during the period of February 15 to June 30th.
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      04-04-2020, 12:10 PM   #12
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Quote:
Originally Posted by Spgm5 View Post
If you take your monthly average of your payroll, utilities, insurance, rent, mortgage interest from previous 12 months and multiple that by 2.5. That's a ball park of how much you'll be eligible for.

If spent on the items listed above, up until June 30th, all can be forgiven. Whatever isn't spent gets applied to a 10 year loan at 4%
It's my understanding that the loan amount is directly related to payroll only- 2019 monthly average payroll. 2019 annual payroll/12 months x 2.5. this value should give you the estimated loan amount. Nowhere on the application does it mention other expenses. The 2.5 multiplyer is so the additional funds can be used to cover other expenses outside of payroll.

https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses.

All the important links and PDF's can be found in the link above. The important ones for us (borrowers) are these:

https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf

https://www.sba.gov/document/sba-form--paycheck-protection-program-borrower-application-form

And of course fill out your respective bank application online.

BTW WELLLS FARGO PORTAL IS UP
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      04-04-2020, 12:32 PM   #13
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Originally Posted by Yessir View Post
It's my understanding that the loan amount is directly related to payroll only- 2019 monthly average payroll. 2019 annual payroll/12 months x 2.5. this value should give you the estimated loan amount. Nowhere on the application does it mention other expenses. The 2.5 multiplyer is so the additional funds can be used to cover other expenses outside of payroll.

https://home.treasury.gov/policy-iss...all-businesses.

All the important links and PDF's can be found in the link above. The important ones for us (borrowers) are these:

https://home.treasury.gov/system/fil...Fact-Sheet.pdf

https://www.sba.gov/document/sba-for...plication-form

And of course fill out your respective bank application online.

BTW WELLLS FARGO PORTAL IS UP
Even from one paragraph to the next, I can see where this is confusing. It seems like you can borrow and use the funds for mortgage interest, rent, payroll and utilities and it will be forgiven completely, as long as you use 75% for payroll. BUT, forgiveness determination is based solely on maintaining headcount. So you can use the funds for rent but if you reduce headcount, the loan forgiveness will be diminished. To get fully forgiven, then, it seems 75% must be used on payroll and headcount can't be reduced.

Anyone read it differently?

https://www.sba.gov/funding-programs...on-program-ppp

Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.
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      04-04-2020, 12:34 PM   #14
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Quote:
Originally Posted by Yessir View Post
Quote:
Originally Posted by Spgm5 View Post
If you take your monthly average of your payroll, utilities, insurance, rent, mortgage interest from previous 12 months and multiple that by 2.5. That's a ball park of how much you'll be eligible for.

If spent on the items listed above, up until June 30th, all can be forgiven. Whatever isn't spent gets applied to a 10 year loan at 4%
It's my understanding that the loan amount is directly related to payroll only- 2019 monthly average payroll. 2019 annual payroll/12 months x 2.5. this value should give you the estimated loan amount. Nowhere on the application does it mention other expenses. The 2.5 multiplyer is so the additional funds can be used to cover other expenses outside of payroll.

https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses.

All the important links and PDF's can be found in the link above. The important ones for us (borrowers) are these:

https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf

https://www.sba.gov/document/sba-form--paycheck-protection-program-borrower-application-form

And of course fill out your respective bank application online.

BTW WELLLS FARGO PORTAL IS UP
Great info, thank you!!! When I read your post I applied prior to this response. Easy peasy. Thanks again for the info!
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      04-04-2020, 12:59 PM   #15
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Hi Doc. Thanks for sharing your experience. Did they say when you should be funded?
No. I’m working with my personal business banker and he said they don’t know when funds would be released.
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      04-04-2020, 01:02 PM   #16
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Quote:
Originally Posted by RickFLM4 View Post
Even from one paragraph to the next, I can see where this is confusing. It seems like you can borrow and use the funds for mortgage interest, rent, payroll and utilities and it will be forgiven completely, as long as you use 75% for payroll. BUT, forgiveness determination is based solely on maintaining headcount. So you can use the funds for rent but if you reduce headcount, the loan forgiveness will be diminished. To get fully forgiven, then, it seems 75% must be used on payroll and headcount can't be reduced.

Anyone read it differently?

https://www.sba.gov/funding-programs...on-program-ppp

Loan Details and Forgiveness
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.

I would like to give you a clear answer but unfortunately, I don't have one. At this point, my concern is to get approved for the loan. I haven't read too much into the conditions and fine print of the loan as I plan to keep my business under the same structure with the same employee head count . It's a confusing mess right now but I am sure it will become more clear in the week. It is sloppy, but I thank the government and will take the assistance without question now, and figure everything else out later. I think the one thing that is clear is if you burn through all the funds you are loaned within 8 weeks, given the information for the loan and the loan amount is correct, you are free and clear- if all the funds were used toward the business and expenses.

Quote:
Originally Posted by hubbahubba View Post
Great info, thank you!!! When I read your post I applied prior to this response. Easy peasy. Thanks again for the info!
Glad I could help, just learning day by day and sharing what I find.
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      04-04-2020, 01:11 PM   #17
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Quote:
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Quote:
Originally Posted by hubbahubba View Post
Hi Doc. Thanks for sharing your experience. Did they say when you should be funded?
No. I’m working with my personal business banker and he said they don’t know when funds would be released.
Makes sense. On the Wells app it said that I would receive an email or text in the next few days to further detail what I need to send them.

Keep the info coming folks!
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      04-04-2020, 01:28 PM   #18
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If you intend to apply, you should do that through your existing bank relationships if they are SBA participants. This is because of the “Know your customer” requirements in banking these days - likely already established with your existing bank but a bit of extra effort and paperwork with a new bank relationship.

I was told that applications were trending toward $1T on Friday. This program will be oversubscribed. There is a question as to whether the SBA can enlarge it or if legislation will be needed. If this all is true, no idea how SBA and banks will allocate among applicants.
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      04-04-2020, 01:38 PM   #19
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It's pretty confusing. I applied for the $10k EIDL because that was the simplest thing. I'm an scorp but I am the only employee so I wouldn't qualify for much under the PPP anyways. Plus you can't really do both, I mean you can but your EIDL gets deducted from the PPP.

Also I read you can get up to $5k credit for paid sick leave or another version of this for families if you have to stay home to take care of kids etc. I think this is through the IRS though. I believe you can use it in conjunction with the PPP as long as it's used separately. So if you got the PPP you would use that to pay salaries for whatever the qualifying period is say 8 weeks. Then AFTER the 8 weeks you could take the sick leave and claim that, but you can't take the sick leave during the period you are suppose to use the PPP funds to pay wages.
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      04-04-2020, 04:04 PM   #20
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our PPP was approved for $790k and will be funded Monday. Had been in contact with my bank, a small local bank, for the last one to two weeks. Sent the info they requested Thursday evening and then the revised application Friday AM. They do not have an online portal and did everything via email.

I'm helping a friend who owns a business. He banks with Wells Fargo and their process sucks. They want all processed online, won't talk with him and their system is not yet ready. They said they will contact him when it is.

Another option for those who have unresponsive banks could be Lendio.com. I was on a webcast late Friday with their CEO. He mentioned Lendio had processed many PPP loan requests on Friday and several have been approved for funding through banks they work with nationwide.
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      04-04-2020, 04:06 PM   #21
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our PPP was approved for $790k and will be funded Monday. Been in contact with my bank for the last few weeks. Sent all info to them Thursday evening and then the revised application Friday AM. They do not have an online portal and did everything via email.
Great news and I hope it helps you and your business bridge to better times.
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      04-04-2020, 04:53 PM   #22
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Quote:
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our PPP was approved for $790k and will be funded Monday. Had been in contact with my bank, a small local bank, for the last one to two weeks. Sent the info they requested Thursday evening and then the revised application Friday AM. They do not have an online portal and did everything via email.

I'm helping a friend who owns a business. He banks with Wells Fargo and their process sucks. They want all processed online, won't talk with him and their system is not yet ready. They said they will contact him when it is.

Another option for those who have unresponsive banks could be Lendio.com. I was on a webcast late Friday with their CEO. He mentioned Lendio had processed many PPP loan requests on Friday and several have been approved for funding through banks they work with nationwide.
Man, that is great news on how quickly your bank got it turned around for you!

No doubt on the process at WF. We have not been thrilled with them for some time now. Been there for decades, and just a pain to change. This might make it easier...
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