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HOT TOPIC [COVID-19] Forgiveable SBA Loans For Small Biz and Freelancers

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Vigilante

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This seems like a tremendous shit show, with a law that passed but with zero intention to follow the law by the SBA. The economic recovery side of this was supposed to (under law) issue direct advances from the federal government to small businesses of $10k. Never happened. Not one person has reported getting it.
 

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Although this program doesn't apply to me, I'm all for everyone who pays into the system getting what they can. And why? It's because as entrepreneurs, you'll be expected to pay your "fair share" when the bill comes due. Or the bill will be passed on to your kids and grandkids.

During the last bailout, bank executives gobbled up million-dollar bonus while small entrepreneurs and home-owners were shafted. The government is flinging money everywhere. This may or may not cause inflation. Whatever happens, you'll be paying for it down the line, and IMO, it's your duty to your family to make sure you've reaped some benefit for all the a$$-raping level of taxes you've paid, or will pay in the future.

And just for the record, I'm hugely against big government. But they're growing anyway and printing money like there's no tomorrow. If you can't stop them, you might as well do what you can to protect yourself for the potential collapse.
 

Vigilante

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Rivoli

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I’m application number 18,000. I applied the day the link went live. So far I’ve heard nothing! and no grant money yet.
 

Captain Swuey

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Aaaaand the video's gone. (Putting on my tinfoil hat, its sudden disappearance suggests there was some truth to it, whatever it was.) What did the video say?
He claimed that he had received a $10k grant via direct deposit and the SBA called him the day after he applied. He went on to mention why he may have received the money (test batch, random selection, etc.) while others haven't and included links to prove his credibility such as news links with him on speaking about his business.

Maybe he did get the money, but I find it hard to believe that only one person received the grant. Maybe he wanted to post a video that he could monetize knowing it could get a lot of attention.
 

Scot

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I've been following everything on Reddit, its pretty wild.

Conflicting sources from the SBA are saying things like
  • Max EIDL is $25,000
  • That they're not honoring the $10k advance. They're doing $1,000 per employee up to $10,000
  • They're out of money
  • They'll disperse early this week
  • They'll disperse in 3 weeks
What we DO know, is that no one has yet received a penny (or a response) for the EIDL that applied through the portal.
 

Scot

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Vigilante

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Vigilante

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amp0193

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Vigilante

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SD Entrepreneur

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Still waiting to hear back myself but this seems to be playing out as mentioned in the article. Have seen these posts today that look to be in line with the 15k max (for now?) and 1k per employee change:
  • I received $2k this morning in my bank account.. I only have 2 employees, so I guess it is based on that.
  • Applied the first few hours it was open on the 29th or so....application was in the first 15,000. The $10,000 was deposited today. We have 20+ employees.
  • I just today received 7k (1k for each employee) and a 15k loan advance is funding, should receive it today or Monday.
 

becks22

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I went through my local bank for the PPP and my banker today said I should have my PPP loan mid next-week! If this has taught me anything, it's that having a working relationship with a banker is a great thing to have! I think at most I'll get 3K for the grant which isn't a ton so whatever I guess.
 

becks22

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Got a call from my banker just now. My SBA PPP loan has been approved. Funding will be in my account sometime in the next 8-10 business days. Edited to add that I was approved for my full amount that I asked for which was 8 weeks of payroll or a little over 25K.
 
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Vigilante

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Do you want to good news or the bad news?

The good news is I just received a form letter from the SBA via email indicating they are moving forward with the EIDL program.

The bad news is they have changed the terms so that instead of getting the $10,000 advance it is $1000 per employee up to a maximum of 10 employees or $10,000 maximum on the advance.

It’s something, but likely not going to have an impact for its intended purpose unless you play through and get the full blown loan which can be amortized over 30 years.
 

Scot

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Do you want to good news or the bad news?

The good news is I just received a form letter from the SBA via email indicating they are moving forward with the EIDL program.

The bad news is they have changed the terms so that instead of getting the $10,000 advance it is $1000 per employee up to a maximum of 10 employees or $10,000 maximum on the advance.

It’s something, but likely not going to have an impact for its intended purpose unless you play through and get the full blown loan which can be amortized over 30 years.
Yep, just got that email too.

Email:
Dear Applicant,

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.
 

CareCPA

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Yep, just got that email too.

Email:
Dear Applicant,

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.
This sparks an interesting conversation in to how vague the legislation is (and often is, not just in the case). For example, in the Emergency EIDL Grants section of the CARES act it states:
"(1) IN GENERAL.—During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID–19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant within 3 days after the Administrator receives an application from such applicant. "

Note it says the entity may request it, it doesn't say the SBA needs to approve it. I imagine this gives the SBA the leeway to actually administer the amounts in any way they see fit? I am not a lawyer, just interpreting what I see.

I'm guessing if you're requesting the emergency grant in the first place, you probably don't have the money to hire an expensive lawyer to go against the SBA on this one, so you just kind of take whatever they give you.

Definitely a crappy situation, and not what people were expecting.

PS: a second round of funding for the PPP program was shot down last week, showing how the situation has now become political. This is why I said I wasn't counting on unlimited funding for it.
 

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MoneyDoc

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I just received a $40k revolving line of credit (Canada) for paying $50k-$1mill in payroll in 2019. Applied Friday, received the funding today. Converts to a 5 year loan at 5% interest on Jan 2021. No payments required until Jan 2023. Interest free until Jan 2023.

Full payment required by Dec 31 2025.

Pay $30k back before Jan 2023, remaining $10k is forgiven.

Great job by the Canadian government in my opinion!
 

Envision

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I just received a $40k revolving line of credit (Canada) for paying $50k-$1mill in payroll in 2019. Applied Friday, received the funding today. Converts to a 5 year loan at 5% interest on Jan 2021. No payments required until Jan 2023. Interest free until Jan 2023.

Full payment required by Dec 31 2025.

Pay $30k back before Jan 2023, remaining $10k is forgiven.

Great job by the Canadian government in my opinion!
How? They shut down private business and then gave you a limited line of credit with terms and 5% interest for the privelege of being able to use money you didnt need before this happened.

The canadian government is a complete joke and has been for the past several years with Trudeau leading it.

I get alot of the sentiments in this thread. But its mind blowing to me how everyone is just taking this like this is how it's supposed to be.

The government came in and shut down capitalism, mortgaged everyone + their kids futures, and is telling you - it needs to be paid back with interest for the privilege of saving your business.. If my business was more drastically affected id be absolutely livid.

And to @Vigilante and @CareCPA point... Im about as much of a capitalist as it gets. But this isnt capitalism anymore. Theyre bailing out any company with a pulse, the government is taking stock in public companies, and people are being literally paid by the government to live...

Literally this is everyone receiving their checks+stimulus this week and paying it back out the next.
https://media.giphy.com/media/g8A6kKFew4w0w/giphy.mp4

Capitalism was sold out a long time ago.

And the argument of what else are they going to do in a situation like this? is simple. Don't let it get to a situation like this, we've had virus' consistently for the past decade and no one did anything to prepare. Blows my mind that these morons in office are so quick to pull the fed lever when they could have allocated some of our tax dollars to preparing for a virus.
 

MoneyDoc

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How? They shut down private business and then gave you a limited line of credit with terms and 5% interest for the privelege of being able to use money you didnt need before this happened.

The canadian government is a complete joke and has been for the past several years with Trudeau leading it.

I get alot of the sentiments in this thread. But its mind blowing to me how everyone is just taking this like this is how it's supposed to be.

The government came in and shut down capitalism, mortgaged everyone + their kids futures, and is telling you - it needs to be paid back with interest for the privilege of saving your business.. If my business was more drastically affected id be absolutely livid.

And to @Vigilante and @CareCPA point... Im about as much of a capitalist as it gets. But this isnt capitalism anymore. Theyre bailing out any company with a pulse, the government is taking stock in public companies, and people are being literally paid by the government to live...

Literally this is everyone receiving their checks+stimulus this week and paying it back out the next.
https://media.giphy.com/media/g8A6kKFew4w0w/giphy.mp4

Capitalism was sold out a long time ago.

And the argument of what else are they going to do in a situation like this? is simple. Don't let it get to a situation like this, we've had virus' consistently for the past decade and no one did anything to prepare. Blows my mind that these morons in office are so quick to pull the fed lever when they could have allocated some of our tax dollars to preparing for a virus.
Meh... I'm 100% Capitalist as well.

I stay out of politics.

But I do agree with you. I'm not a fan of my government. However, compared to other countries, I think it was faster, easier, for a business to get a loan.
 

Envision

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Meh... I'm 100% Capitalist as well.

I stay out of politics.

But I do agree with you. I'm not a fan of my government. However, compared to other countries, I think it was faster, easier, for a business to get a loan.
Agreed with you on that part. And I am Canadian, so whenever my mom and my uncles start talking it usually ends up being a shit talk Trudeaufest so that will come out from me sometimes. lol sorry.
 

MoneyDoc

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Agreed with you on that part. And I am Canadian, so whenever my mom and my uncles start talking it usually ends up being a shit talk Trudeaufest so that will come out from me sometimes. lol sorry.
Haha no worries man! I'm 100% with you on the politics.
 

levijean

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My bank finally started taking applications for the PPP loan yesterday. I filled out the form but chickened out when it was time to affirm the money was "necessary". Up until now I have been all about taking advantage of whatever handouts are available. But hard to claim it's needed when the loan amount equates to less than 3% of cash on hand.
 

biophase

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My bank finally started taking applications for the PPP loan yesterday. I filled out the form but chickened out when it was time to affirm the money was "necessary". Up until now I have been all about taking advantage of whatever handouts are available. But hard to claim it's needed when the loan amount equates to less than 3% of cash on hand.
I got my EIDL grant today! :)
 

Lex DeVille

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I applied for the EIDL early in the thread. I don't have employees and there's been confusion about whether or not freelancers and solopreneurs can get this. But this morning there was progress.. It's not cash, but it's movement..
SBA.PNG
 

tmb22

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We got our PPP money yesterday but no 10,000 grant or anything from that loan application
 

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