Post automatically merged:
Background: a previous application for Small Business Disaster Assistance, SBDA, was accepted and paid.
This is the unexpected follow up email that prompted the 2nd application.
There is no loan as of yet, just processing. Still a chance for rejection.
View attachment 465831
You keep mention PPP and repayment. That is different then the EIDL loan which is what this thread references. You could have applied for both, but if you just applied for the EIDL and not the PPP the restrictions on use are quite different. EIDL is not forgiveable outside of the initial disbursement that can be considered a grant in some cases.Getting the loan is simple, obtaining forgiveness is the hard part, SBA just issued some new guidelines, obtaining forgiveness will trigger audits if they see that you could pay your bills with the PUA.
I mentioned the (PUA)Pandemic Unemployment Assistance, I already denied PPP because articles were saying I couldn’t double dip, so now I have the same issue with SBA so I want to know if I can get EIDL while still receiving PUA benefitsYou keep mention PPP and repayment. That is different then the EIDL loan which is what this thread references. You could have applied for both, but if you just applied for the EIDL and not the PPP the restrictions on use are quite different. EIDL is not forgiveable outside of the initial disbursement that can be considered a grant in some cases.
SBA offered me a loan that will take 30 years to repay. What part of it is considered a "grant"?It's a loan, not income. You don't have to use It for payroll expenses.
My assumption is the grant part needs to be repaid as part of the balance if you go through with the loan. I don't know for sure though.
The first $1,000 per employee "can" be a forgiveable grant depending on what you choose to do with either a PPP loan as well or taking out an EIDL loan after the fact.SBA offered me a loan that will take 30 years to repay. What part of it is considered a "grant"?
PUA and PPP would be considered double-dipping because both are targeted at salary payments. Mass Unemployment townhall specifically cited this.I ended up not signing my PPP loan documents afraid that I would lose my PUA benefits, I wonder if SBA is any different, I’m still waiting
If you accept any amounts over $25,000 your business is considered collateral and you can't divest yourself of it without SBA approval. That has quite a few folks on reddit wary of accepting high $$$.
a. If a direct Federal debt is delinquent, your recommendation must be based on independent documentation from the appropriate Federal agency explaining how the delinquency will be cured.
- Payment of any dividends or bonuses;
- Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant;
- Repayment of stockholder/principal loans, except when the funds were injected on an interim basis as a result of the disaster and non-repayment would cause undue hardship to the stockholder/principal;
- Expansion of facilities or acquisition of fixed assets;
- Repair or replacement of physical damages;
- Refinancing long term debt;
- Paying down (including regular installment payments) or paying off loans provided, or owned by another Federal agency (including SBA) or a Small Business Investment Company licensed under the Small Business Investment Act. Federal Deposit Insurance Corporation (FDIC) is not considered a Federal agency for this purpose;
- Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations.
b. If a direct Federal debt is delinquent because of the disaster, we should make arrangements with that Federal creditor to have payments deferred or a similar action taken to bring the delinquency current prior to approval of an EIDL. If the Federal creditor cannot or will not cooperate, the likely result will be a decline of the EIDL request. However, if the applicant has other resources or recoveries, we should generally allow (and perhaps require) those resources to be applied first to ineligible needs, such as the payment of direct Federal debt.
c. When processing during the injury period, it is generally appropriate for you to negotiate with Federal creditors to defer payments (or take similar action) until the end of the injury period. You must document why this was or was not imposed.
9. Pay any penalty resulting from noncompliance with a law, regulation or order of a Federal, state, regional, or local agency.
10. Contractor malfeasance; and