Was having this exact conversation today with my boss.....I haven't heard of anything on the EIDL....not a single client, business owner, friend, colleague, distance cousin....not one person has reported anything on EIDL....

just my $0.02, but the SBA is on the hook for EIDL...so focus on PPP!
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That's actually not step one! you're better than a lot of folks right now....no promise, but it seems like once the SBA notice goes through, the funding is happening quickly....
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Maybe it's a government scam. We had to submit our Full Name , address birthdate, place of birth, and bank account routing /account number. We're all set up to get drained !
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People are reporting deposits of $1k - $10k as of today.
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I got approved yesterday (PPP). It literally took about an hour to get approved. No clue as to when the money will hit though. Had a friend apply a week ago, got approved that day, and said the money was supposed to hit yesterday. But still nothing.
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I signed final docs on the PPP today and the funds will be deposited Monday!
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Here's a blog post from Paul Niefer. He's an ag accountant, but his stuff on the SBA loans should transfer. Of course, they're still trying to work this out as he talks about in his blog, but it's what we need to start looking at.

LINK

How Much of Your PPP Will be Forgiven?
April 9, 2020 Paul Neiffer

Now that you have received a Paycheck Protection Program loan, you will need to understand the calculations on how much of the loan might be forgiven. As we write this blog post there is already another Bill in the Senate to increase the funding amount by close to $200 billion and make some changes to the program.

But for now, we will focus on how the law allows for part or all of the loan to be forgiven.

The covered period to determine how much will be forgiven starts the day after the loan is funded and runs for 8 weeks. During that period, you are allowed to accumulate all of your payroll costs (employee compensation, group health costs, retirement payments and state and local employer portion taxes), rents, interest on mortgages and utilities. Rents, interest and utility payments all had to be in place on February 15, 2020. The law does mention mortgages on personal property. That needs to be defined.

In order to have all of the loan forgiven, at least 75% must be spent on payroll costs. The new bill may eliminate this requirement. The other 25% can be spent on rents, interest and utilities.

However, simply spending 75% on labor costs may not result in full forgiveness. There are two tests that you must meet. First, your full-time equivalent employee (FTEE) count must be either equal to or greater than a test period. The test period is either February 15, 2019 through June 30, 2019, or January 1, 2020 to February 29, 2020. All of these tests are based on monthly averages.

If your FTEE’s during the covered period is greater than the test period, then no reduction in loan forgiveness. For many farmers this may be fairly easy to meet. However, the next adjustment calculation may be more burdensome.

You are required to determine if total pay to each employee during the 8 week covered period is less than 75% of the total pay during the first quarter of 2020 (the wording in the CARES Act discusses a more than 25% reduction in total pay for each employee). The first quarter has 13 weeks and 75% of 13 is 9.75 weeks. Therefore, to not have any reduction in loan forgiveness you are required to stuff 9.75 weeks of pay for each employee into an 8 week period. Let’s look at an example:

Sue obtains a PPP loan of $40,000 based on wages paid to her five hired hands. During the first quarter she paid the 5 workers a total of $50,000. 75% of $50,000 is $37,500. During the 8 week covered period, she paid the workers $29,000. $8,500 of her $40,000 loan will not be forgiven even though she spent all $40,000 on payroll costs during the period (the other $11,000 was spent on health insurance and state payroll taxes).

This calculation appears to be required for each employee and any employee whose annualized pay exceeded $100,000 for any pay period in 2019 is not counted. Here is an example:

One of Sue’s workers incurred a large amount of overtime in 2019 for one pay period. She pays her workers weekly and his gross payroll for that particular week was $2,000 which results in $104,000 of annualized pay. Sue does not need to include him in the loan forgiveness calculation.

The bottom line is that PPP loans may be easy to get, but they may be tougher to get full forgiveness. We shall see if Congress makes changes to this or if that was their intent.
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I have nothing but good things to say about Equity Bank. I have an account with them for my LLC, and I can vouch for everything you've said about them. Absolutely first rate.
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This is a fantastic write up....thank you! The one thing I'd clarify is that the interest allowed under PPP is mortgage interest. The exact language in CARES is "payments of interest on any covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation);"
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Finalized our PPP application Friday.

Should get paid by Wednesday or so.
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any word or news on EIDLs?

It appears you ain't getting 10K unless you have 10 or more employees.


“The SBA is experiencing a large volume of applications for the Economic Injury Disaster Loan,” the agency wrote to one loan applicant in a message shared with The New York Times. “Due to current appropriations for this program, the SBA will make initial loan disbursements for two months of working capital up to a maximum of $15,000 per applicant.”

In remarks on the Senate floor on Thursday, Sen. Ben Cardin (D-Md.) also said the loan program was “only able to provide $15,000” to small businesses that applied, even though the average amount requested was $200,000.

Small businesses have applied for $372 billion worth of Economic Injury Disaster Loans, according to Cardin. “But here’s the problem: We have only authorized $7.3 billion for that program,” he said.

Cardin has called for providing the program with enough money to make another $300 billion worth of loans.
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:-)

This is fucked.
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It’s all fucked.
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I applied for both the PPP and EIDL.

Havent heard shit on either one. Meanwhile my customer base has dried up to almost nothing.
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