COVID-19: Resources and Discussions for Small Businesses — Small Business Majority Community

Are you still struggling even after receiving PPP funds? Share your story!

Zachary_SBM — Mon, 15 Jun 2020 17:24:37 +0000

Has your business already spent your PPP funds to pay workers according to the initial eight-week rule and are now having to lay them off again due to slow business recovery? Was the PPP money not enough to keep your business afloat? Are you now worried about qualifying for PPP forgiveness because of a misunderstanding of the rules?

Share your story here and learn from other small business owners in a similar circumstance. We will also try to provide any resources and answers we can to help!

Indoor Playgrounds help

Nufan — Tue, 23 Mar 2021 21:18:40 +0000

Hello,

I own an indoor playground. My business closed on March 16, 2020 due to Covid and we are still closed. Museums, zoos, aquariums, movie theatres, live performing arts, and pretty much every businesses are open. WE ARE STILL CLOSED!!!! We need help paying for rent. My rent is $25,000 per month.
Why am I not eligible to apply for this grant?
This grant is for those businesses hit hardest by Covid and yet, the eligible businesses are open and I'm not.
Disneyland will be opening on April 30.
Six Flags Magic Mountain will be opening on April 1st.
Please consider allowing me to also apply for this grant. Over 1 year and we are still closed.
Please help. Please treat ALL businesses fair and equal.
If we can not apply for the Shutter grant, how are we supposed to pay for rent??

PPP for Business Filed with Secretary of State in 04/2020 Eligibility. Please help.

Sandra — Tue, 09 Mar 2021 18:43:03 +0000

Hi! I just watched your webinar on SBA/Scores. Thank you so much for your helpful info and this community. My background is in restaurants and hospitality and felt obligated to pivot and launch e-commerce business and filed with the state in April 2020. I have applied to PPP before with no luck. Am I eligible for this round and which is the best program to apply for? I am based in CA and my business is at a loss. There was option for any loans since all was focused on existing businesses and PPP. I am hoping to apply for a forgivable loan. Any intel and guidance is greatly appreciated. Thank you again. I am at a loss and my accountant has filed for S-Corp and an extension for my business tax filings.

The Feb 15th 2020 date

agado — Fri, 05 Mar 2021 03:01:09 +0000

I formed the corporation in July 2019, then I hired myself, took a loan, and started construction. So I had loan repayment, expenses, and contractor payments to make. But the store itself didn't open till Marsh 2020. Do I meet the PPP requirement of being in business before Feb 15th 2020 or not? Thanks.

Questions about the Economic Injury Disaster Loan (EIDL) Program

sherryp37 — Fri, 03 Jul 2020 16:27:48 +0000

Any input what can be paid and what cannot be paid from the proceeds of an EIDL loan. I am a sole proprietor , independent contractor and drive for Lyft. I am 1099'd, work from home but must pay office dues that I am affiliated with. I know car payments and repairs, car insurance, related real estate and other vehicle issues. Told by SBA that I couldn't buy a new car even if it will cost a lot to keep it in condition to use for work. Doesn't make sense...a payment is a payment and cash out for repairs is still cash out. I have been living on my credit cards and maxed out. I have had conflicting information as to whether I can pay even of a portion of residential rent. credit cards etc. I am not behind thanks to maxed credit cards but would be behind otherwise. Does anyone have information to guide me or direct me to an information source. Thank you for your time

Do we have to look at the entire business revenue to prove we are 25% down when compared to 2019?

Jennifer32 — Thu, 21 Jan 2021 23:23:21 +0000

In 2019 we had three locations and in January 2020 we opened up a new location. For the second round of the PPP can we show the revenue from just the three original locations to prove we are down 25% for a certain quarter? Or are we disqualified because with the new location the revenue is up from 2019?

PPP for S corp owners

mariaservimer — Thu, 28 Jan 2021 22:11:30 +0000

My husband and I are the only employees of the S corp. There seems to be an unfair guideline by SBA prohibiting us from adding our full earnings to what is reported on W2 to be capped at 100K per year per employee for the purposes of PPP loan amount calculation. Is this really written in the law or is this part of SBA’s interpretation?
When a Mortgage company gives me a mortgage, they look at Both W2 and distributions reported on Schedule E. When general stimulus check guidelines are issued, they look at my AGI which includes BOTH. Why S-corp owners are treated differently than owners filing as self-employed? Why should my PPP be reduced simply because I am the type of business owner that pays payroll taxes, and the other business owner pays self-employment tax? In the end, all my earnings are still taxed on my personal tax return.

401K and Pension -Defined Benefit Plan

greencal — Thu, 14 Jan 2021 18:47:40 +0000

Can we do PPP-1 Amendment: We wish to add in PPP-1 Defined Benefit, please reference question seven on page three of following FAQ:

Paycheck Protection Program Loans Frequently Asked Questions (sba.gov)

Question:
The CARES Act excludes from the definition of payroll costs any employee compensation in excess of an annual salary of $100,000. Does that exclusion apply to all
employee benefits of monetary value?
Answer: No. The exclusion of compensation in excess of $100,000 annually applies only to cash compensation, not to non-cash benefits, including:
• employer contributions to defined-benefit or defined-contribution retirement plans;
• payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums; and
• payment of state and local taxes assessed on compensation of employees.

PPP Round 2 application (payroll/# of EEs)

swooftchicago — Tue, 12 Jan 2021 18:40:31 +0000

For the PPP round 2 application where it's asking avg monthly payroll and number of employees... this should be as of what date?

PPP Round 2 - How to determine amount when we were shut down for 6 months of 2020?

KimberlyA — Mon, 11 Jan 2021 22:29:06 +0000

We are preparing to apply for Round 2 of the PPP, but our business was largely shut down for half of last year. If we have to use the full year of 2020 to determine our PPP funding amount, that is not a good representation of our average monthly payroll.

Our business began to be active again in the middle of September. Would it be acceptable to use our Q4 2020 numbers to determine average monthly payroll? (Meaning just dividing our Q4 total payroll by 3). We are working again, and happily are getting more work moving into 2021 so that is a much more accurate representation of our average monthly payroll than looking at 2020 as a whole.

Thank you in advance to anyone who can advise me on how to proceed.

Business startup amid covid

bettywatersedge — Tue, 01 Sep 2020 13:53:14 +0000

Hi
I had started creating a holistic retreat with gluten free kitchen when everything crashed in March. I’m just starting to create income above bills to finish my business. Are there funds to help entrepreneurs finish their startup? Thank you

As a new small business, am I eligible for PPP?

ReneeC — Wed, 30 Dec 2020 22:40:52 +0000

Hello,
I opened the doors to my Independent Bookstore in May of 2020 however my LLC was formed in September of 2019. I also had a lease for the location in September of 2019. Will I be eligible to apply for a PPP loan when the second rounds open up? It's been challenging finding resources as a small business that was in process in 2019 but not yet selling a product. Thank you.

CA Small Business Relief Grant - physical address question

kfeazell — Thu, 31 Dec 2020 03:05:17 +0000

Hello! I see the requirement that companies applying for the CA Small Business Relief Grant must have a physical address and operate in CA. We are working from our homes currently and also have a month-month co-working space as well as a separate mailing address (all in CA). It is a street address but we don't conduct business from that location. We operate our business from CA. Do we qualify? What should we use as our address on the application--coworking space, mailing address, or home office? Can the physical address requirement be further clarified?

Can I apply for PPP without payroll in 2019?

littlefoxpreschool — Wed, 05 Aug 2020 18:59:18 +0000

Hi, I am owner of LLC, no payroll , was disapproved by blue vine.
Can I apply via other lender?
Can you please share a lender list?
Thank you

Hello, Can you please answer the following questions in regards to the loan forgiveness application?

TRankin — Mon, 03 Aug 2020 23:11:08 +0000

What dates do I enter for "Covered Period"? My business is still closed due to COVID-19.
For "Payroll Costs" do I enter the gross income for that period? I am the only employee.
Is it the same for Rent costs, for the covered period time frame?

EIDL loan and PPP

Zara123 — Tue, 07 Jul 2020 18:33:09 +0000

I received a ppp loan, and i have used all funds already. I am planning to apply for forgiveness once my bank offers it.
I am approved for a SBA (EIDL) loan as well, if i accept the sba loan, will this affect my forgiveness application on the PPP loan

PPP Forgiveness for S-Corp non-W-2 Owner-Employee Distributions

ellaprint — Thu, 18 Jun 2020 19:15:59 +0000

Just took an informative webinar in which Brian and David presented on small business relief opportunities and found that my company may indeed be eligible to get forgivable PPP assistance.

We are an S-Corp with no W-2's and only pay out periodic distributions to our two owner employees.

I had previously been told by a potential lender that without W-2 employees the business was not eligible to apply.
Based on the information in Brian and David's webinar, it appears that the situation may have changed.

What information do I need to verify our eligibility and successfully get through the application process?

Appreciate any insight that will help us navigate this process,
Audry

Copier Lease Forgivable?

jawhite62 — Tue, 30 Jun 2020 19:49:17 +0000

Are lease payments for copy equipment considered as part of the forgivable expenses?

Owner's compensation

jawhite62 — Thu, 18 Jun 2020 13:31:31 +0000

in regards to the PPP loan forgiveness, is owner compensation that is paid as W2 employees part of the forgivable expenses?

PPP Forgiveness for S-Corp Owner Employee Distributions

ellaprint — Thu, 18 Jun 2020 19:07:18 +0000

Just took an informative webinar in which Brian and David presented on small business relief opportunities and found that my company may indeed be eligible to get forgivable PPP assistance. We are an S-Corp with no W-2's and only pay out periodic distributions to our two owner employees. I had previously been told by a potential lender that without W-2 employees the business was not eligible to apply. Based on the information in Brian and David's webinar, it appears that the situation may have changed.
What information do I need to verify our eligibility and successfully get through the application process?

Payroll Costs

jawhite62 — Thu, 18 Jun 2020 14:17:03 +0000

For PPP loan forgiveness calculations, are "payroll costs" considered Gross wages or Net wages?

Second PPP Application possible?

samcollab — Wed, 17 Jun 2020 22:12:03 +0000

I received my PPP loan and I have used all of it in 6 weeks for my payroll. In hindsight I could easily have asked for twice the amount I applied for but I was a bit extra cautious in asking for a large loan. Can I apply again for additional funds as I can easily show that I am going to use it for my payroll?

EZ PPP Application: Reduction in business activity as a result of health directives related to COVID

alyb — Wed, 17 Jun 2020 21:28:19 +0000

According to the new EZ PPP Application if "there was an inability to return to the same level of business activity as such business was operating at before February 15th due to compliance with requirements established or guidance issued by the Secretary of Health and Human Services, the Director of the Centers for Disease Control and Prevention, or the Occupational Safety and Health Administration during the period beginning on March 21, 2020, and ending December 31, 2020, related to the maintenance of standards for sanitation, social distancing, or any other worker or customer safety requirement related to COVID– 19"

What is an example of a "health directive" as referenced above? Almost all 50 states instituted mandatory lock-downs already that effected most if not all businesses with regard to business activity. What sort of documentation would we need to supply in order to to show this?

Can I apply for PPP loan again?

samcollab — Wed, 17 Jun 2020 22:14:46 +0000

Are company IRA contributions, flexibility act

jawhite62 — Tue, 16 Jun 2020 19:28:32 +0000

Are company IRA contributions part of the forgivable PPP loan payroll expenses? Since the flexibility act is now in effect, we have 24 weeks of payroll for forgiveness, correct?

What expenses are considered "forgiveable"?

jawhite62 — Tue, 16 Jun 2020 19:17:19 +0000

In regards to PPP loan forgiveness, what expenses are considered forgivable? If we need a computer program to keep the employees working, does that count? What about Payroll taxes, or is it just straight payroll? Are the expenses related to health coverage that the company pays part of the forgivable payroll expenses?

Definition of Loan Orgination

jawhite62 — Wed, 10 Jun 2020 14:38:41 +0000

What is the definition of "Loan Origination" as far as the loan forgiveness application is concerned?

PPP & PUA

jv28 — Wed, 06 May 2020 17:03:47 +0000

Like many small businesses, I applied to various COVID-related government benefits that I am eligible for. In the last two days I learned that California EDD approved my Pandemic Unemployment Assistance (PUA) claim AND my bank approved my PPP application. Is my company allowed to accept both of these? I read that it is ok to accept PUA until the 8 weeks of PPP payroll kick in - is that true? Not trying to "double dip" from these benefits if I am not supposed to but do want to accept assistance that I can.

Sole Proprietor: Unemployment or PPP?

Liberation — Mon, 06 Apr 2020 19:12:18 +0000

I'm a sole proprietor and have no employees or subcontractors. My most recent contract with a client terminated on Feb. 19. I have been looking for new clients, but it's very unlikely I'll find anything. I registered for unemployment on 3/19/20, declaring I was applying due to Coronavirus, and on 3/30/20 I received a response email from the EDD that I don't qualify for any benefits because I'm self-employed, but they still provided me with the obligation to report my work search. Then on 3/31/20 the CARES act came out. Now it seems like I may qualify for PPP, but I've been told during the webinar that I would not be able to register for both. So, first, which one would offer me better benefits? And, second, if PPP offers better benefits, what steps do I take to close my registration as unemployed and then register for PPP? I don't want to start my PPP application late, but also don't want to weave a tangled administrative mess that could delay provision of benefits.

PPP forgiveness with reduced headcount due to COVID

Quantum610 — Mon, 01 Jun 2020 18:42:17 +0000

What if your FTE count is reduced because an employee contracted Covid after funding was received and is not able to return to work before June 30th? How does this effect the 75% ratio for forgiveness?