Why you didn't apply tru Veem?
I remember I took this tip from you and applied with them. Was my only application. I got $7300.00
PPP Loan Update
So April 10th is here and it's the turn for independent contractors to apply.
Unfortunately, almost every bank requires a business relationship or previous loan activity. I have Chase and I cannot apply without a business bank account.
I found a bank that it appears will accept applications without you being a previous customer or having a business account! Best of luck to all of us.
Unfortunately, almost every bank requires a business relationship or previous loan activity. I have Chase and I cannot apply without a business bank account.
I found a bank that it appears will accept applications without you being a previous customer or having a business account! Best of luck to all of us.
61 - 79 of 79 Posts
I did. It turned into Kabbage and never heard a peep from them
Saw an article today that the second ppp authorization still has 60% of funds available. They might have more money than ppp applications that get approved. And even if the money authorized, few are actually spending it, many just holding it and planning to return it without using it.
I've also read that some were just going to give it back but I don't really understand why. If you get it you may as well keep it as it can be used for more than just payroll. They forgive whatever is for payroll on salaries under a certain level and up to 25% of the loan supposedly can be forgiven if used for rent utilities and insurance. It's also a 1% loan and nobody will be able to get money that cheap. Even if you have a small company with a line of credit you can pay it down and cut interest expenseSaw an article today that the second ppp authorization still has 60% of funds available. They might have more money than ppp applications that get approved. And even if the money authorized, few are actually spending it, many just holding it and planning to return it without using it.
Many laid off their workers and even if they hired them back can't spent the money within 8 weeks.Also, no business is 75% payroll, most are 50% or less. Few are gonna use their own money to make up difference running at 50% capacity and losing money.I've also read that some were just going to give it back but I don't really understand why. If you get it you may as well keep it as it can be used for more than just payroll. They forgive whatever is for payroll on salaries under a certain level and up to 25% of the loan supposedly can be forgiven if used for rent utilities and insurance. It's also a 1% loan and nobody will be able to get money that cheap. Even if you have a small company with a line of credit you can pay it down and cut interest expense
Its true on the payroll side but many still have rent and utilities they are liable for which is also forgivable for a portion of the loan. If need 25k for rent and utilities you can take a 100k loan and only need to payback 75k even if you don't have anyone working. If you think you are going to be in business when this is all over you can also you the money as a regular loan and pay it back over the 2 years or whatever the time frame is. You still are getting the money at a far lower interest rate than any bank will give it to you as a loan a line of credit. If you have a small business and you were using a business card to pay the bills your interest Rate will be much higher if you aren't paying it down. So what's better 1% interest from the sba or 10-20% going to chaseMany laid off their workers and even if they hired them back can't spent the money within 8 weeks.Also, no business is 75% payroll, most are 50% or less. Few are gonna use their own money to make up difference running at 50% capacity and losing money.
I understand what you are saying. For a growing, expanding business your idea is good. But many businesses are not trying to invest money for growth. They are trying to run a profitable, debt free business that makes more than it spends and just provides them enough money to pay their bills. A loan doesn't do these kinds of businesses good because they don't want to spend money. They just want to make money. What they do have to buy, they want to be able to afford it with their sales.Its true on the payroll side but many still have rent and utilities they are liable for which is also forgivable for a portion of the loan. If need 25k for rent and utilities you can take a 100k loan and only need to payback 75k even if you don't have anyone working. If you think you are going to be in business when this is all over you can also you the money as a regular loan and pay it back over the 2 years or whatever the time frame is. You still are getting the money at a far lower interest rate than any bank will give it to you as a loan a line of credit. If you have a small business and you were using a business card to pay the bills your interest Rate will be much higher if you aren't paying it down. So what's better 1% interest from the sba or 10-20% going to chase
On April 30, late in the evening -- when few people were likely paying attention -- the IRS released guidance that essentially nullified much of the benefit of the Paycheck Protection Program (PPP) created under the CARES Act. It stated that those who receive PPP may not receive tax deductions for using those funds to pay expenses. That includes expenses like payroll and rent, the very point of the PPP.
Congress specifically drafted the legislation so that small businesses could receive PPP loans without having to count it as taxable income. That makes the IRS' move all the more stupefying. And it could cost some small businesses on the brink more than they can afford.
How Much Could It Cost Businesses?
That cost isn't theoretical. It's actually fairly easy to quantify.
Let's say a small-business owner requests and receives $600,000 to cover payroll for the 10 weeks where he or she is covered by the PPP. If they can't deduct that amount as expenses, that means their federal tax burden clocks in at a rate of 37%.
That equates to a $222,000 increase in their taxable income. Meaning the effective tax-free benefit of the loan is $378,000, not the $600,000 intended by the law.
PPP Loan Forgiveness is Taxable Income per IRS
The IRS has released guidance (Notice 2020-32) stating that expenses related to forgivable loans through the Paycheck Protection Program (PPP) won't be tax-deductible.
Under the PPP, small businesses wouldn't have to repay the low-interest loan they received as long as the loan went to essential expenses such as maintaining payroll, utilities and rent.
Under the CARES Act, the PPP loan forgiveness is not counted as taxable income. But the IRS said in its guidance that expenses that result in forgiveness of a PPP loan are not tax-deductible in order to prevent a "double tax benefit."
Unless Congress overrides the IRS's argument, the result is that the disallowed deductions will effectively create the same amount of taxable income you would expect if the deductions had been allowed, but the debt forgiveness was taxable.
Since Congress was clear in their intent that the debt forgiveness should not create taxable income, hopefully when they learn of the IRS's argument, they will issue guidance or even new tax law that allows these expenses to remain deductible. But until then, taxpayers should assume that any debt forgiveness from a PPP loan will effectively be taxable income.
Loans are not taxable income, ever.
Some types of interest payments are tax deductible.
I don’t see how a loan could ever reduce income tax liability. And that’s only a worry if you make a profit anyway.
And if a grant / free money is being taxed, no worries, you still have the untaxed portion of the free money.
Some types of interest payments are tax deductible.
I don’t see how a loan could ever reduce income tax liability. And that’s only a worry if you make a profit anyway.
And if a grant / free money is being taxed, no worries, you still have the untaxed portion of the free money.
I believe grants are tax free, debt forgiveness is taxable
In most instances, if you have a loan forgiven, the balance becomes taxable income.
The PPP program SHOULD have been written to max any forgiven amounts non-taxable...though I haven't read it...i have no idea.
The PPP program SHOULD have been written to max any forgiven amounts non-taxable...though I haven't read it...i have no idea.
If you get $1 and it is taxed you get $.75
So Just ask for $1.33 and if it is taxed you get $1.
Free money - tax = slightly less free money
So Just ask for $1.33 and if it is taxed you get $1.
Free money - tax = slightly less free money
Another CARES Act related story breaking today, regarding Paycheck Protection Program fraud.
"The U.S. Justice Department has sent grand jury subpoenas to big banks seeking records as part of a broader investigation into potential abuse of a $660 billion emergency loan program to help small businesses hurt by the novel coronavirus, two people with knowledge of the matter told Reuters.
The previously unreported subpoenas issued by the department's Washington fraud division do not necessarily indicate wrongdoing on the part of the banks but will compound growing worries among lenders that they risk being swept up in a federal crackdown on Paycheck Protection Program fraud."
More at: https://fcced.com/us-doj-subpoenas-wall-street-banks-165201740/
"The U.S. Justice Department has sent grand jury subpoenas to big banks seeking records as part of a broader investigation into potential abuse of a $660 billion emergency loan program to help small businesses hurt by the novel coronavirus, two people with knowledge of the matter told Reuters.
The previously unreported subpoenas issued by the department's Washington fraud division do not necessarily indicate wrongdoing on the part of the banks but will compound growing worries among lenders that they risk being swept up in a federal crackdown on Paycheck Protection Program fraud."
More at: https://fcced.com/us-doj-subpoenas-wall-street-banks-165201740/
Talking about fraud
What about buying jewelry, Rolls-Royce and paying child support with PPP money??
What about buying jewelry, Rolls-Royce and paying child support with PPP money??
President Trump just said the PPP program would likely be extended an additional 24 weeks... instead of ending after 8 weeks.
Does that mean we can get 24 weeks of pay rather than 8
The President had just completed a meeting with restaurant owners. They wanted to have access to the PPP loan program for an additional 24 weeks, so they could continue paying employees while getting back to profitability.Does that mean we can get 24 weeks of pay rather than 8
61 - 79 of 79 Posts
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