Economic Injury Disaster Loan-SBA

[bmarsh]

I got my edil 1k yesterday in my bank...I was one of the first to apply, on 3/30

 

[sman]

Does anyone know how the SBA determines how much a particular business/independent contractor is eligible for under the "Paycheck Protection Program"?

Take your monthly salary (limit of $100k annually) and multiply by 2.5. For example, let's use the $100k figure. that comes out to $8,333.33 per month. That would be a loan of $20,833.33 ($8,333.33 x 2.5). As long as the money is used to pay salary and other business expenses (i.e. - rent, utilities, etc.) the loan will be forgiven (no more than 25% of the money can be used for things outside of payroll - if it is, that portion will not be forgiven and must be paid back).

I'm really not sure how this will work for those who aren't set up as a corporation (LLC, S-Corp, C-Corp) and just have their commissions paid to their personal banking account (from what I gather, most banks require a business checking account).

 

[sman]

I got my edil 1k yesterday in my bank...I was one of the first to apply, on 3/30

You only got $1,000? How did they determine that amount? Just curious. Trying to learn as much about it as I can to relay to other people I know.

 

[bmarsh]

Take your monthly salary (limit of $100k annually) and multiply by 2.5. For example, let's use the $100k figure. that comes out to $8,333.33 per month. That would be a loan of $20,833.33 ($8,333.33 x 2.5). As long as the money is used to pay salary and other business expenses (i.e. - rent, utilities, etc.) the loan will be forgiven (no more than 25% of the money can be used for things outside of payroll - if it is, that portion will not be forgiven and must be paid back).

I'm really not sure how this will work for those who aren't set up as a corporation (LLC, S-Corp, C-Corp) and just have their commissions paid to their personal banking account (from what I gather, most banks require a business checking account).

you'll just write yourself a check i imagine

 

[bmarsh]

You only got $1,000? How did they determine that amount? Just curious. Trying to learn as much about it as I can to relay to other people I know.

this was for the EDIL up to 10k Advance, they lowered it to 1k per employee up to 10 employees.....

So in my case, an independent contractor counts as just 1 employee.

If you had 10 employees, you can get the full 10k advance.

 

[scagnt83]

I have not received it yet, but I did receive an email confirming I applied... and that they lowered the amount to $1k per employee..... LOL

 

[bmarsh]

I have not received it yet, but I did receive an email confirming I applied... and that they lowered the amount to $1k per employee..... LOL

i don't recall getting a confirmation email, just got the money in my bank

 

[sman]

this was for the EDIL up to 10k Advance, they lowered it to 1k per employee up to 10 employees.....

So in my case, an independent contractor counts as just 1 employee.

If you had 10 employees, you can get the full 10k advance.

Thanks for the info. Admittedly, I haven't followed the EIDL like I have the PPP loan since I applied for the PPP loan. I did recall the $10k figure being thrown around, but had not heard they adjusted that to $1,000 per employee.

 

[Tahoe Ray]

I got my edil 1k yesterday in my bank...I was one of the first to apply, on 3/30

I applied for this the next day so hoping that timeline holds.

Thanks for the info. Admittedly, I haven't followed the EIDL like I have the PPP loan since I applied for the PPP loan. I did recall the $10k figure being thrown around, but had not heard they adjusted that to $1,000 per employee.

My understanding is that the EIDL may offset your PPP funds anyway so I don't think that you're missing out on anything.

 

[sman]

I applied for this the next day so hoping that timeline holds.


My understanding is that the EIDL may offset your PPP funds anyway so I don't think that you're missing out on anything.

That is correct. For anyone who applies for EIDL and then later wants to apply for PPP, the EIDL is rolled into the PPP loan. And since they have reduced EIDL to $1,000 per employee, now I wonder why everyone wouldn't just go to the PPP loan? I am getting considerably more than $1,000 through PPP for this one man shop.