The PPP Thread

[GastroMastro]

Waiting on my bank. But probably waiting until 24 weeks have passed so I can get 100% forgiveness as a sole proprietor with no employees. I was told on BogleHeads to wait the 24 weeks.

My wife is a sole proprietor with no employee. Why must you wait 24 weeks for that? How much are you going to get? We are getting 8333.33x2

[Mmd]

The loan the practice took out did NOT include owner’s compensation in calculating the maximum loan amount.

[jacoavlu]

The loan the practice took out did NOT include owner’s compensation in calculating the maximum loan amount.

I'm pretty sure in this situation you can actually go back and just revise the loan, to increase it to include owner compensation. Cleaner than having everyone get separate loans.

Note I am not a CPA or a lawyer.

[GasFIRE]

My wife is a sole proprietor with no employee. Why must you wait 24 weeks for that? How much are you going to get? We are getting 8333.33x2

I agree. I’m also a sole proprietor and got my loan prior to 6/5 so the max was $15,385. Waiting 24 weeks won’t change anything. My 8 week marker is coming up soon so hopefully the lender will have the forgiveness application available.

[Molar Mechanic]

The loan the practice took out did NOT include owner’s compensation in calculating the maximum loan amount.

Good God Man! Apply right now for your LLC, and then hire yourself a competent accountant!

The practice got the loan for the employees of the practice. If you have an LLC, you are paying yourself from that LLC and are eligible for a loan and forgiveness of your salary as well as any other employees salary, as well as employee retirement benefits.

[Cubicle]

My wife is a sole proprietor with no employee. Why must you wait 24 weeks for that? How much are you going to get? We are getting 8333.33x2

I agree. I’m also a sole proprietor and got my loan prior to 6/5 so the max was $15,385. Waiting 24 weeks won’t change anything. My 8 week marker is coming up soon so hopefully the lender will have the forgiveness application available.

Maybe I'm mistaken? I thought I read that for 24 weeks one could get 100% of the PPP amount forgiven, even as a sole proprietor.

[jacoavlu]

Im pretty sure for a sole prop w no employees forgiveness is just gonna be 100% based on 2.5/12 of 2019 sched C income

[GastroMastro]

Maybe I'm mistaken? I thought I read that for 24 weeks one could get 100% of the PPP amount forgiven, even as a sole proprietor.

If so this would extremely unfair. I based my loan forgiveness amount on 8 weeks. I would have gladly done 24 weeks, which would be closer to 48000. I am pretty sure a single sole prop is not getting 48000 forgiven. That would be a major change to the program

[GasFIRE]

If so this would extremely unfair. I based my loan forgiveness amount on 8 weeks. I would have gladly done 24 weeks, which would be closer to 48000. I am pretty sure a single sole prop is not getting 48000 forgiven. That would be a major change to the program

For a sole proprietor my understanding from the last update of the rules was a max of 8/52 of $100K ($15,385) for 8 weeks or 2.5/12 of $100K ($20,833) for 24 weeks. For the 24 weeks it would seem to be better to be an employee rather than an owner.

[GastroMastro]

For a sole proprietor my understanding from the last update of the rules was a max of 8/52 of $100K ($15,385) for 8 weeks or 2.5/12 of $100K ($20,833) for 24 weeks. For the 24 weeks it would seem to be better to be an employee rather than an owner.

ok fine, but even 20833 for 24 weeks is more than originally promised, which was 15385 for 8 weeks. had i known that i would have requested a full 20833...

[Cubicle]

Im pretty sure for a sole prop w no employees forgiveness is just gonna be 100% based on 2.5/12 of 2019 sched C income

Ooooh I hope so. Fingers crossed. But admittedly I haven't even looked at any of the forgiveness applications. Also admittedly I have not kept up with all the changes/updates. 8/52, 2.5/12, $20,833, 100%, etc...

[chrisCD]

Waiting on our bank.
cd :O)

[GastroMastro]

I wanted to revive this thread to see what people are doing. are people applying for forgiveness? I had waited because I still have (dwindling) hope that there will be auto-forgiveness for loans <150,000. many articles online (on WSJ, CNET, and the like) 'recommend' for people to wait to file for forgiveness still. although i dont mind waiting, i also dont want to miss boat on forgiveness or have my forgiveness decision extend out into 2021. i'd like the whole thing over with! (sole proprietor)

[GasFIRE]

My lender notified me earlier this month that they are in the process of creating an online forgiveness application linked to my loan. They don’t want and won’t accept paper completion of the forgiveness application that is available from the SBA. Still waiting for notification that online application Is ready.

[Molar Mechanic]

The banks are all waiting to see what Congress does.