The PPP Thread

[Peds]

formerly_cn why don't you wait till you have an update until posting further. You have not been successful and no further PPP changes have been announced.

[formerly_cn]

I am a contract employee, not an independent contractor, and would not be eligible for PPP, in any legitimate way.

(I missed most of the conversation, but I think that was the suggestion.)

Sorry didn't mean to suggest you did that rather that you filed for unemployment which is the right way imho. Actually trying to credit you Vagabond. Sorry if it came off the other way.

Thought you were IC. My mistake.

Peds you are right. Will not post further.

[GastroMastro]

Shake shack returning 10 million to the PPP. Maybe other medium sized business will follow. Prob not

[White.Beard.Doc]

So today legislation was passed and the PPP is getting an additional $300 billion in funds.

In the first round our group applied through our regular bank, one of the big ones that is getting sued for putting their largest customers at the front of the line ahead of those of us who applied very early. We did not get approval or funding in that round.

Since getting shafted by our usual banking relationship with our big bank, we submitted applications through Lendio and Fundera. I have no idea if we will get funded or not in this round. I am hopeful, but at the same time this is doubtful.

For those who are upset that the process "is not fair", who ever said that life was going to be fair? We are doing our best to get funded, and it feels like a coin toss at this point if we will. Good luck to all of you trying to get funds to help you through the lean times.

[formerly_cn]

So today legislation was passed and the PPP is getting an additional $300 billion in funds.

In the first round our group applied through our regular bank, one of the big ones that is getting sued for putting their largest customers at the front of the line ahead of those of us who applied very early. We did not get approval or funding in that round.

Since getting shafted by our usual banking relationship with our big bank, we submitted applications through Lendio and Fundera. I have no idea if we will get funded or not in this round. I am hopeful, but at the same time this is doubtful.

For those who are upset that the process "is not fair", who ever said that life was going to be fair? We are doing our best to get funded, and it feels like a coin toss at this point if we will. Good luck to all of you trying to get funds to help you through the lean times.

You are one of the best posters here. I would not rely on fundera / other online lender aggregator. Bank is still the best bet.

As an update: for whatever reason I got some PPP funding. Some still pending but atleast that's something.

Someone else asked if if you apply now would you get it ? Doubtful. Whoever in pipeline gets it.

I'm much more calm about all this now. Totally agreed. Life not fair.

[White.Beard.Doc]

You are one of the best posters here. I would not rely on fundera / other online lender aggregator. Bank is still the best bet.

As an update: for whatever reason I got some PPP funding. Some still pending but atleast that's something.

Someone else asked if if you apply now would you get it ? Doubtful. Whoever in pipeline gets it.

I'm much more calm about all this now. Totally agreed. Life not fair.

We still have the application through our megabank in line. They told us that we are the final step of the process. I will believe it when I see it. I think they are now messaging from a place of panic over the lawsuits that have been commenced. Right now we have 6 loan applications pending. We will take whatever gets funded first.

[jacoavlu]

New guidance posted 4/24 from Treasury how to calculate PPP loan amount for various business entities (sole prop, S Corp, partnership)

woulda been nice a few weeks ago but oh well

https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf

[formerly_cn]

New guidance posted 4/24 from Treasury how to calculate PPP loan amount for various business entities (sole prop, S Corp, partnership)

woulda been nice a few weeks ago but oh well

https://home.treasury.gov/system/files/136/How-to-Calculate-Loan-Amounts.pdf

Very nice find jacoavlu you are like Prometheus when it comes to PPP

Totally agreed. This confirms and provides much needed guidance.

[Tim]

Perhaps they got a large loan, but that doesn’t mean they will get a large forgiveness. Different banks may interpret the rule different and affect the final outcome. One thing is clear, banks are doing whatever they want with regards to ppp

One thing is pretty clear. You have support or direct knowledge of banks.
Very few people get paychecks from Berkshire Hathaway. You do realize they could probably qualify. Right? As long as they wanted to say they had losses. Just takes a willingness to say “free money”.

[jacoavlu]

^^^ Tim I don’t think that’s true

[docnews]

Initially loan builder (PayPal PPP setup) gave me a loan based solely on my net profit but then they changed it to $100k limit which equals $20,832 for a highly paid sole proprietorship. This is probably what the braggards had happen to them.

[formerly_cn]

Initially loan builder (PayPal PPP setup) gave me a loan based solely on my net profit but then they changed it to $100k limit which equals $20,832 for a highly paid sole proprietorship. This is probably what the braggards had happen to them.

Thanks for the post. I've thoguht alot about it and I'm really much calm about it. Yea them bragging made me angry, but really who cares. Everyone does what is best for them. Kudos to govt for atleast attempting to provide help and currently I may not have all PPP but I did get EIDL so in some way or another govt funding has helped.

Anyways this will all be sorted out. Now I just hope we get rid of coronavirus/find vaccine and get to some semblance of economy/work soon.

[jacoavlu]

https://www.omaha.com/money/how-a-family-owned-nebraska-bank-quickly-became-the-nations-second-biggest-lender-under-the/article_9283b681-76f9-5853-800a-1075f52e06fc.html

Nebraska bank processed over 800 PPP loans in the first 72 hours (which was a Fri, Sat, Sun)

[Tim]

^^^ Tim I don’t think that’s true

https://www.businessinsider.com/berkshire-hathaway-corporate-office-staff-2014-3

Purely speculation! Depends on how they have their legal entity structure setup and the choices for a common payroll or separate. The 25 person holding company could be a separate tax ID. (Or not). Legal entity tax reporting would be the basis of the PPP, each separate not the consolidated numbers we see reported. They obviously have a huge number of legal entities besides the corporate parent (which is extremely small ~25). It is very likely they leave legal entities in place and qualify. Many under 500 employees and many impacted by the shutdown. PPP specifically followed the IRS employee reporting employer ID trail. A conglomerate could have many qualified entities including the separate headquarters.
The decentralized approach of Brk led to my speculation. Just as many here could have multiple businesses that qualify for separate PPP applications, there is no prohibitions for a controlled group, each would be eligible.
The businesses have losses, payroll, and under 500 employees. Ownership was not a criteria. That is the logic.
Is that false? Maybe I missed your point. Discussion only.

[jacoavlu]

I believe the SBA affiliation rules would render BRK and its subsidiaries ineligible.

https://home.treasury.gov/system/files/136/Affiliation%20rules%20overview%20%28for%20public%29.pdf