[EIDL/PPP Megathread] New changes for forgiveness of PPP loans under $50k and all questions related to PPP go here.

 

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[EIDL/PPP Megathread] New changes for forgiveness of PPP loans under $50k and all questions related to PPP go here.

The SBA released new rules for forgiveness of loans under $50k [link](https://www.globenewswire.com/news-release/2020/10/09/2106009/0/en/SBA-and-Treasury-Announce-Simpler-PPP-Forgiveness-for-Loans-of-50-000-or-Less.html) and that may make it a bit easier for some of us.

More information is available

[Treasury announcement](https://home.treasury.gov/news/press-releases/sm1148)

[Credit Union interest group analysis](https://www.nafcu.org/newsroom/sba-announces-simpler-forgiveness-loans-under-50k-updates-faqs)

[Forbes – yeah I know but still](https://www.forbes.com/sites/brianthompson1/2020/10/09/a-new-ppp-forgiveness-application-is-out-what-you-need-to-know/)

Have questions? Have advice? Want to discuss? Keeping it here will help us all see the issues and keep the forum open for other questions important for us to survive this year.

[EIDL/PPP Megathread] New changes for forgiveness of PPP loans under $50k and all questions related to PPP go here.

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24 Replies to “[EIDL/PPP Megathread] New changes for forgiveness of PPP loans under $50k and all questions related to PPP go here.”

  1. I truly hate our government sometimes. The new 3508S doesn’t say anything about where or how to submit it to.

    I tried logging into my SBA account just to try to look up the Lender’s loan number (hoping it was there) and it says my account is inactive. I have a f’ing 30 year EIDL and my account is inactive. What idiots.

  2. I received notice from my bank today that my PPP loan has been forgiven except for $1,000. I also received a $1,000 grant from SBA for EIDL. I own a single member LLC with no other employees. It wasn’t much, but I was grateful for PPP money.

  3. Some FAQs on PPP loan forgiveness were published by SBA on Oct 13: https://www.sba.gov/sites/default/files/2020-10/PPP%20–%20Loan%20Forgiveness%20FAQs%20%28October%2013%2C%202020%29-508.pdf

    At least, they’ve included here some guidance for new businesses (PPP loan based on Jan-Feb 2020 income) that they neglected to put on the new, simpler PPP loan forgiveness application form. So, will the SBA issue a revised application form including this guidance?

  4. On this form 3508S, if you are self employed you put 1 under employees at time of application and 1 at time of forgiveness correct? Thank you

  5. Wondering if some people can answer some theorcrafting for myself.

    There is talks of the 2nd round of PPP, while I know it’s not final a lot of the numbers looked to be >25 percent of money made. What numbers do you think that comes into? Revenue? Gross income? Net income? etc?

    ​

    Personally wondering if you’re close to that cut off (I think I personally am) if it’d be worth it to increase some buisness expenses that are needed to get below that mark. Mainly stuff I would be getting anyway, but a bit earlier etc. Any thoughts you guys have, suggestions etc? As I know some other folks I have talked to are in the same mental thought where their incomes for their businesses have increased recently but still have been below average and below yearly average etc.

  6. I received a PPP loan in April and used it for 2 months of “owner’s compensation” (I am a sole-prop LLC) and my monthly studio rent (I’m a photographer, have been in my studio for over a year).

    I am month-to-month on my studio and do not have a lease with my landlord. I do have receipts for wire transfers made to the management company during my loan period.

    Am I able to have this amount used for rent forgiven without a signed lease? Any advice?

  7. What about “new businesses” that were started in 2019, where the PPP loan was granted based on January-February 2020 income?!! There’s no mention about that situation as far as I can tell.

  8. Must I still subtract my EIDL advance from the forgiveness amount?

    I got $10k from the EIDL and $12k from the PPP so once I realized my eligible forgiveness would thus be $2k, I basically planned on giving it all back. Rent expense exceeds my payroll by quite a bit.

  9. Has anyone’s bank opened up a portal for forgiveness? I have the sba document but I’m not sure who to even send it to.

  10. Question about forgiveness.

    Let’s say for argument I took out a $200,000 PPP loan. And I spend $400,000 over the 24 week period on payroll.

    If I had reduced my staff by 50% over that 24 week period would I still qualify for 100% PPP loan forgiveness given that a 50% FTE reduction of $400,000 is still $200,000 ?

  11. Regarding the 1k EIDL – I don’t have any records to show that I received it other than the 1k in my bank. Does anyone know where I can find more details? I did end up withdrawing my EIDL application

  12. Any updates on EIDL grant deduction out of PPP forgiven amount?
    I received 15k in PPP and a 10k EIDL advance. I kept and paid all the money to my employees. And now only 5k can be forgiven

  13. So what happens if you already submitted the forgiveness application to your bank? This one looks like it’s a lot easier and less prone to error. They keep changing the rules in the middle of the game.

  14. Hi, I got an question about the wage reduction safe harbor in PPP. I did some research and saw the wage reduction safe harbor rule “If the average annual wage or salary as of December 31, 2020 or your loan forgiveness application date (whichever is earlier) is equal to or more than the annual wage or salary as of February 15, 2020, the safe harbor applies.”

    I got a small restaurant which has around 20-30 employees total. Most of our workers are seasonal part-times. We got a PPP more than $50k, around $90k. Most of our workers in Feb already left, the one remains, we never reduce their hourly wages, we did some small increase for some good performance workers. To my understanding, if the hourly wages is not decrease by 25%, then I am good? As some workers work less hours due to different reasons, the total annual wages at 12/31/2020 could be less than Feb 2020. (but hourly wise, it is not decrease).

    Thanks!

  15. We received a PPP loan of $28,400 and an EIDL advance of $3,000. We did not apply for the EIDL money and I don’t have an EIDL application number.

    Do I need to deduct this from the PPP forgiveness amount? Is there a difference between the EID advance and an EIDL loan?

  16. I have a question. It was mentioned by someone in my industry, corporate pilot, that we could apply for PPP loans due to lost income as a contractor. This year I’m down about $46,500 which is quite the haircut. Is there any truth to this? I’m just looking for a starting point on if a contractor can apply for assistance for lost income. It’s really made everything check-to-check. Been hanging on as hard as I can hoping this industry starts turning around and I get back to regular business again.

  17. **PPP Amount of Forgiveness – 8 weeks spent 75% on payroll**

    I have looked and looked and cannot find a simple answer. If I elect 8 week period and spent 75% of the PPP loan on payroll and maybe another 5-10% on allowable expenses, will the entire amount be forgiven or only the amount that I spent? If I go with the 24 week period, it will all be covered, but it sounds like forgiveness will be quicker using the 8 week period (and I already had the accountant produce the reports for 8 week).

  18. For a scorp, does payment to business owner/shareholder via payroll (therefore goes to w-2) gets counted towards FTE headcount? Do you know if self employment health premiums that is paid by company, but the insurance plan is an individual health plan (therefore not a company sponsored plan) can count for forgiveness? I was told that for scorp owners, they are a shareholder & employee, but they’re not “self-employed” by legal/tax definition.

  19. Was approbed for PPP Loan but in my Kabbage account, the loan balance is $14K and the loan amount is $4k. What does this mean? I did receive the $14K loan. I’m just not sure why it says loan amount is $4,000. Any input is appreciated, thank you

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