PPP — 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!

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.

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?

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?

Will you be applying for the second round of PPP?

Kevin_SBM — Tue, 12 Jan 2021 15:15:49 +0000

This week, the SBA relaunched the Paycheck Protection Program (PPP) through community development financial institutions (CDFIs) for first-time borrowers and eligible second-time borrowers. There is a focus on ensuring business owners of color and women entrepreneurs have improved access to this federal funding.

We would like to hear from the business owners in our community. Will you be applying for PPP this week? Whether you have already applied or are planning to apply, we want to hear how your experience has been. Please share why the PPP will help your business and why continued support for small businesses is so critical as we begin to recover from the COVID-19 pandemic.

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.

The Final Debate is over. Did the candidates deliver on small business issues?

Kevin_SBM — Fri, 23 Oct 2020 16:46:54 +0000

With the final debate ending last night, the topic of small businesses came to the forefront. Both candidates had a focus on stimulus relief and the minimum wage.

What did you think of the conversation points? Did either candidate deliver on the needs of small businesses across the country?

How can Congress help small businesses right now during the pandemic?

Kevin_SBM — Tue, 15 Sep 2020 21:08:28 +0000

Thank you for being a part of Small Business Majority's network and for participating in the Community Digest & Discussion!

Our goal is to provide a place for business owners like you to discuss current events and issues that are impacting small businesses across the country. When business owners are able to learn from others in similar situations or gain a better understanding of important small business issues that impact all of us, the small business community at large will benefit. Furthermore, at Small Business Majority, we are always looking for feedback and insights from real business owners so that we can do a better job providing education, resources and advocacy.

Currently, we are looking for feedback around the following question:

With Congress' continued inaction on a new Stimulus Package, it's beginning to look like no deal will be agreed upon before the election. What impact will this have on your business and what do you think Congress should be doing to help small businesses right now?

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

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

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?

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?

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?

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.

regarding PPP loan forgiveness

hillsbros — Fri, 29 May 2020 17:02:52 +0000

A big question many of us have relates to insurance premium expenses (not employee health care plans). First, can workers compensation insurance premiums be added to either the 75% payroll side or the 25% expense side of the loan forgiveness equation? Since it is an integral part of the employee compensation expense (for the employer) and is a direct function of their payroll cost, we would like to think it is forgivable. And second, can any other insurance expense (commercial vehicle, general liability, or umbrella policy) be added to the 25% expense category for loan forgiveness? Since we were told company vehicle gas is an allowable expense in the utilities category, we would hope that the vehicle insurance for essential service technicians is also a forgivable expense. What do you think? Thank you so much for your guidance!

Is back pay forgivable?

LauraG — Fri, 22 May 2020 16:29:30 +0000

Is back pay paid to employees during the 8 week window a forgivable payroll expense? The wages were incurred well before they received the PPP funds.

PPP Forgiveness with Reduced Headcount

LauraG — Sat, 09 May 2020 17:36:31 +0000

How will PPP forgiveness with reduced headcount work? If the business uses the funds for payroll and rent/utilities within the approved percentages, but fails to retain its previous headcount, will the amounts used be forgiven and the remainder become a loan? Or, does failure to retain headcount make them ineligible for any forgiveness? Or something else?

Can employees claim unemployment before PPP funds get awarded?

LauraG — Wed, 08 Apr 2020 15:49:01 +0000

Can a business furlough or lay off employees while awaiting PPP acceptance? They would have to rehire them as of loan origination or as of June 30?

Mortgage interest/rent/utilities forgiveness for home-based businesses?

LauraG — Tue, 05 May 2020 23:20:05 +0000

PPP Forgiveness Question: Can mortgage interest, rent, and utilities be forgiven if the business is based in the personal home of the owner? If so, would you use the home office percentage used for taxes?

Is payroll level for PPP counted by head count or total dollars?

alexk — Sun, 12 Apr 2020 02:26:03 +0000

If we get a PPP loan, will the amount forgiven increase if we are paying staff more to work during the pandemic? If we had 10 employees prior, and only 5 presently, can we pay them double and have that amount forgiven? If we were to pay the same in wages would we be penalized by having less of the loan forgiven?

Payroll Protection Program (PPP)

Zachary_SBM — Tue, 31 Mar 2020 16:05:00 +0000

The CARES Act includes $350 billion for federally guaranteed loans for small businesses, sole proprietors, self-employed individuals and independent contractors affected by the COVID-19 crisis. These loans can be forgiven if the proceeds are spent on payroll, benefits, mortgage interest, rent and utilities. According to the latest guidance from the Treasury Department, 75% of the loan proceeds should be spent on payroll costs.

For full details, visit: https://venturize.org/resources/payroll-protection-program

PPP- Can S corp owners draws be included in payroll amount?

WMTE — Thu, 02 Apr 2020 18:40:44 +0000

I have an S Corp. I don't take a salary. I take draws as need be. Can that be included in the Small Business PPP. I do have an employee