PPP Updates Round 2 - How to get PPP faster

[@TheDocrwm]

Thanks for all the help. Shifted away from BoA, they sat on things for a month, I had to escalate 4 levels to even get to be "allowed" to upload my docs, and then they offered me salary * 2.5 NOT salary+insurance+retirement (paid by employer) as outlined in the SBA and Treasury guidelines. Took your advice and tried an electronic bank and within 72 hours my loan documents were generated (for the correct amount), sent to me, signed, and now are going to SBA! Thank you!

[@BrassHorseStudio]

THIS IS FANTASTIC NEWS! Thanks for sharing this! Glad to help!

[@TheDocrwm]

@@BrassHorseStudio I am happy that it worked (fingers crossed with the SBA turnaround) and to share it. The smaller lenders and the electronic banks have really been the heroes in all this (unlike the BIG banks)!

[@La13Ka41]

Who did you apply with

[@TheDocrwm]

@@La13Ka41 PayPal's affiliated lender.

[@johnandsherrymiller31]

I used square to apply on Sunday (4/26), got approved (4/27) and received my deposit today. There were two choices of amounts to chose from on the loan application. 1) The higher amount I was eligible for said this "at least 25% must be spent on qualifying costs for the loan to be forgiven" 2) the lower amount said this "no spending requirements for the loan to be forgiven" . Because we are self employed, used schedule c and dont take a paycheck, have one account to pay bills through owners draw, I thought it would be easier not to have to prove where we spent the money, so i took the lower amount. Now it looks like i still have to apply for forgiveness and I have not heard anyone discuss these two amounts. Square couldnt help and I have been waiting for a call back. I hope I didnt lose $1500 for no reason. Do you have any information on this?

[@BrassHorseStudio]

This is an interesting response. I don't have any hard information on your specific situation. However...according to the CARES Act, each lender will determine forgiveness, in accordance to the guidelines of the CARES Act. Here's my guess (just a guess): the lower amount they offered you was probably based solely on 2x your average monthly profit from your schedule C. In other words, 2x your average monthly income. If that is the case, then they only lent you the equivalent to payroll. The higher amount was probably 2.5x your average monthly profit (line 31) on your schedule C, in which case you can spend up to 25% on mortgage interest or rent and utilities for your business. If you can't justify those expenditures then ONLY THAT PART might become a loan. If you chose the lower amount, Square is likely to just call that "Went directly to payroll" when it comes time for forgiveness, an the the whole transaction is over with. If you chose the higher amount, then you'll have to justify where that last 25% went, and it might become a 2 year loan at 1%. Please let me know if this made sense!

[@johnandsherrymiller31]

Brass Horse Studio The amount makes sense, Hope that is the way it will go. Have another call in to them. If I get an answer I will update. Thank you!