SBA Should be held accountable for direct violation of Law under CARES act and gross negligence. Possible class action lawsuit for botched handling of EIDL loan and Grant/Advance small business |
- SBA Should be held accountable for direct violation of Law under CARES act and gross negligence. Possible class action lawsuit for botched handling of EIDL loan and Grant/Advance
- PPP site live with Lenders
- Wish the banks would increase their remote deposit amounts
- It's Friday....has anyone received the EIDL grant?
- SBA Making This Too Complicated - 10K Advances for All Small Business Owners
- Steve Mnuchin confirmed indp contractors & sole p's will be eligible for PPP NEXT WEEK (not tmrw), under a different application
- Small Business PPP Loan and Loan Forgiveness Online Calculator
- If you applied for an EIDL grant and are afraid you wont get it or will get a reduced amount, send this letter to your Senators and Congressman.
- Facts and Rumors Surrounding Current Status of PPP Loans
- PPP loan/grant at Bank of America
- Banks Force Treasury To Double Rate On Small Business Rescue Loan
- A case study in the madness of the PPP
- PPP Application Form Link & Guidance for Questions We Have All Had
- Forgivable categories limited despite what the text of the legislation says
- Quit my job and started my own business, two weeks before the Covid-19 Shutdown. What are my options?
- The biggest issue with the EIDL delay no one is talking about.
- Just got this email from Chase which included the following text. So much for that, eh?
- SBA Loans & Advances - Call to Action
- Some Clarification on EIDL $10k Grant
- SBA just released new regs for the PPP
- "We're here for our clients" my ass. Bank of America only doing PPP loans for those who they are already lending to.
- New Guidelines/FAQ on PPP posted on Treasury website - 4/2 evening
- JPM Chase will NOT be ready for SBA PPP tomorrow.
- 10k Grant Directly From Bill - Quoted Info from Care Act
| Posted: 02 Apr 2020 03:33 PM PDT I urge everyone to read the actual bill text of the CARES act in the section relating to the EIDL loan advance. It is VERY clear in it's intent and is highly specific that if we self-certify we can request an advance on a grant up to the amount of 10K, without waiting for approval or consideration. This grant is to be paid out within 3 days. This is the law: ----- (e) Emergency Grant.— (1) IN GENERAL.—During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID–19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant within 3 days after the Administrator receives an application from such applicant. (2) VERIFICATION.—Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury pursuant to section 1746 of title 28 United States Code. (3) AMOUNT.—The amount of an advance provided under this subsection shall be not more than $10,000. (5) REPAYMENT.—An applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)). ------ Yet we are hearing over and over from reps various stories and each time someone calls in it's a different one. The consensus we are hearing, along with a statement from a high level SBA rep, that the grant will be based on the number of employees you have. That you must first get contacted by a loan officer, get approval for the grant based on some unknown formula of employees to income ratio, then within 3 days you will receive an amount up to but most certainty not 10K. The SBA has taken it upon themselves, outside the direction of the law, to invent their own criteria for how these funds are to be disbursed. This goes against the direct intent of congress, who wanted this in the hands of small business as soon as possible. The idea was that, everyone could get the grant right away without the need for a a bureaucratic approval process , which is the reason the language was added about getting it regardless of approval or denial. This comes from direct statements by the people who wrote the bill. Now we are hearing it will be weeks before we are even contacted to be considered for approval for this "advance". The law says 3 days after receiving an application, not being processed and assigned a loan officer! I have also heard that they are getting away with this because of the language that we must "request" an advance in specific amount of no more than 10K, however because they do not give us the ability or option on requesting an amount, they are not in violation of the law by not acting. Basically a loophole. I urge everyone to contact your congressmen's office and make it known the SBA is operating outside the law and defying the intention and spirit of the CARES act. They have our self certifications, our business eligibility information, and our bank info. They have all that is legally required to start disbursements but it's been more than 3 days for some and they have not sent a dime for any advance. There will be lawsuits when this is over. edit: Thank you whoever gave me gold! I am glad someone else is as passionate and outraged about this as I am. [link] [comments]  |
| Posted: 02 Apr 2020 07:29 PM PDT https://www.sba.gov/paycheckprotection/find?address=77379&pageNumber=1 This is NEW on their site. There are places for lenders now [link] [comments]  |
| Wish the banks would increase their remote deposit amounts Posted: 02 Apr 2020 12:53 PM PDT I know this is a minor thing that's messing with us but spending 45 minutes in a line to deposit a check for $2100 when the limit is $2k basically burned god knows how much gas, oil and most importantly time, sucks. There was one teller and another woman standing outside with no gloves or masks(not those really matter) handing out deposit slips. Gotta change up my invoicing amounts but that now doubles my AR efforts making twice as many invoices and the collections. ACH is sometimes a option for the orgs but when multiple people have to sign a check...ugh. EDIT: after losing 2 hours on hold, I was told that they wouldn't up my remote mobile deposit past $3k a month because....drum roll, i don't deposit enough, fuck chase, time to start looking for a new bank that wants...more then $3k remote deposit a month. I even got the tech to repeat, "yes you are not making enough deposits because you are unable to make more then $3k a month". [link] [comments]  |
| It's Friday....has anyone received the EIDL grant? Posted: 02 Apr 2020 09:32 PM PDT It's 12:39AM on the East Coast right now. Many banks make direct deposits available at the stroke of midnight, some even sooner. So....has anyone received anything? I sure haven't. Apparently the SBA was telling Congresspeople that some advances were coming Friday. Is there a single person that can give any of us a ray of hope? [link] [comments]  |
| SBA Making This Too Complicated - 10K Advances for All Small Business Owners Posted: 02 Apr 2020 06:53 PM PDT Why make this process so damn complicated? Could be easily done and set up with funds delivered within 3 days.
Look, if it's true that our country remitted funds to Rocket Man in Pyonggang then I'm even more fucking disappointed. #priorities [link] [comments]  |
| Posted: 02 Apr 2020 02:48 PM PDT Source - todays covid briefing There's a lot of material covered regarding SBA loans, please check the recording on YouTube .. PPP loans are available starting tomorrow, but I highly doubt that's tru.. [link] [comments]  |
| Small Business PPP Loan and Loan Forgiveness Online Calculator Posted: 02 Apr 2020 05:18 PM PDT We built this online calculator to make it easy for small businesses to check if they qualify for Pacheck Protection Program. It also lets you run some scenarios to see how much forgiveness you may qualify for. https://growthzilla.com/covid-ppp-loan-forgiveness-calculator [link] [comments]  |
| Posted: 02 Apr 2020 05:27 PM PDT To whom it may concern, The CARES Act, Section 1110. Emergency EIDL Grants, (e), (1) states: IN GENERAL.—During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID–19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant within 3 days after the Administrator receives an application from such applicant. Sometime on Sunday, March 29, the SBA updated their website with a new streamlined application that includes provisions to request the $10,000 grant. I filled out this application (#3300XXXXXX) on XXXXX, after receiving direction from the SBA I would need to submit the new streamlined application to be considered for the grant. At the time of writing this letter, it has been over 72 hours (3 days) since I submitted the application and I have not received funds from the SBA. I do realize that it may take some time to disburse the funds, but the SBA has given no guidance on how or when I might expect funds to arrive. Furthermore, the head of the SBA Mid-Atlantic region, has been quoted as saying that businesses with less than 10 employees may not receive the grant. https://www.bizjournals.com/philadelphia/news/2020/04/01/sba-mid-atlantic-boss-talks-interest-rates-loan.html My main issue right now is the lack of transparency the SBA is giving regarding these grants and even the EIDL in general. As a small business owner, I have no way to plan for my businesses future as there is no clear and concise information coming from the SBA. Furthermore, the smallest businesses and startup businesses are the most vulnerable right now and will rely on these grants to make it through this. In addition, I would argue that the SBA cannot add an arbitrary means test as to who gets the grant, or to otherwise reduce the amount given each applicant. The CARES act is clear, the SBA must advance each applicant within 3 days of receiving an application an amount of money requested by the applicant, not to exceed $10,000. I have requested $10,000 advance emergency grant 3 days ago, and I haven't been paid. As an American taxpayer, who no doubt will be required to help pay for the CARES act in the future, I feel a direct injury related to this matter. It is people like me that need a cash infusion right now to pay our mortgages, pay our utilities, and put food on our tables. My entire life is on hold right now and so far I've been offered no help despite the promises of almost every politician I've reached out to. Sincerely, XXXXX TITLE XXXX BUsiness [link] [comments]  |
| Facts and Rumors Surrounding Current Status of PPP Loans Posted: 02 Apr 2020 07:25 PM PDT I'm a small business lawyer in Ohio. I have been working nonstop on EIDL and PPPL. I've been watching this subreddit for a while and finally decided to offer my input. I want to be clear, I'm not here to advertise my services. I'm simply passing along reliable information that I have from the trenches. A lot of people are already disappointed in the roll out of the EIDL and the $10,000 advances. But the PPP is turning into its own disaster. After speaking with several SBA lenders and reviewing official statements from banks, below is a list of information I have compiled from banks around the Cincinnati-Dayton area. I hope you are experiencing better news in your areas. Some of these are confirmed facts. Others are statements that may not necessarily be official bank policy, but they come from reliable sources:
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| PPP loan/grant at Bank of America Posted: 03 Apr 2020 03:29 AM PDT Bank of America will be going live with their website this morning. You must have an an existing business checking and business credit of some kind to apply. Best of luck. Bankofamerica.com/Sbresources [link] [comments]  |
| Banks Force Treasury To Double Rate On Small Business Rescue Loan Posted: 03 Apr 2020 03:21 AM PDT Good peace on this Small Business Rescue Loan https://www.zerohedge.com/economics/hours-its-start-treasurys-small-business-bailout-verge-collapse [link] [comments]  |
| A case study in the madness of the PPP Posted: 02 Apr 2020 12:50 PM PDT Consider two businesses in New York city. The first is a small software company, with 20 employees, most highly paid programmers. When so ordered, they started working from home, but it wasn't a big deal, since they all work at laptops anyhow. Meanwhile, their business has grown, as they are lucky their online service is needed more in a Coronavirus world. The future looks rosier than ever. The second is the pizza restaurant next door, with 10 employees mostly at or near the minimum wage or $15/hour. Business dropped by 90% almost overnight when Coronavirus hit. They are trying to do as much take-out and delivery as possible, but it's tough, because they are in a business neighborhood and almost all of their customers (like the programmers from the first business) are now working at home. The second business already has furloughed 7 of its employees. Now the remaining 3 are in fact begging to be laid off so they can get the extra $600/week unemployment from the CARES Act, because they are hearing from their furloughed colleagues how they are now making 50% more being unemployed than before. One of the three remaining employees even said if they aren't laid off they will just quit, and self-certify that they quit due to the Coronavirus in order to still get UI and the $600/week -- as explicitly allowed by the CARES Act. Two questions. Which of these two businesses needs more help? And which of these two businesses does the CARES Act Paycheck Protection Program (PPP) help more? Let's see. For the software business, they can apply for a PPP loan. They just need to self-certify they have been "affected" by the Coronavirus. They don't have to show revenue declines. They will get 2.5x of their monthly payroll costs, which they immediately use in the following 8 weeks to cover payroll and rent they were going to pay anyhow. Later, they apply for loan forgiveness, which they get in full since they maintained employment -- after all, business was up and they were as busy as ever. They throw a party thanking Uncle Sam for the unlooked for and unneeded windfall. For the pizza place, they can also apply for a PPP loan. However, because during the next 8 weeks, business remains almost zero and they have at most a handful of staff left, they only get a small portion of it forgiven. They cover their rent with the loan, but with dread since they know it will become a debt millstone around their necks because the PPP rule is that 75% of forgiven costs must be payroll. Even if they hired back everyone so they could get more forgiven, what would be the point? There's no work for them, and far from being happy to have a paying job for another 2 months those workers end up furious to lose out on the $600/week for four months from the Cares Act (and many simply refuse to come back anyhow, knowing they are protected by the Cares Act in their refusal of the available job). I made the above cases up to illustrate the point. But this is meant to be serious. This is the reality of the situation. Unless I'm wrong about something. Am I? [link] [comments]  |
| PPP Application Form Link & Guidance for Questions We Have All Had Posted: 03 Apr 2020 12:29 AM PDT Application form is up on the SBA site. This is what SBA lenders and banks will be using to process your application. It looks like independent contractor expenses that you pay out are included in the PPP calculation because of this section "The Applicant was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors, as reported on Form(s) 1099-MISC." To get forgiveness you have to provide "documentation verifying the number of full-time equivalent employees on the Applicant's payroll as well as the dollar amounts of payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities for the eight-week period following this loan." Don't plan on furloughing everyone and then using the whole loan for rent with the expectation that it will all be forgiven because "loan forgiveness will be provided for the sum of documented payroll costs, covered mortgage interest payments, covered rent payments, and covered utilities, and not more than 25% of the forgiven amount may be for non-payroll costs." If you are an independent contractor or sole proprietor applying for this loan your calculation will use "wage, commissions, income, or net earnings from self-employment or similar compensation". (Opinion time for me: Since not more than 25% of the forgiven amount can be used for non payroll cost don't plan on going on unemployment if you want the loan forgiven. Make sure at least 75% of your proceeds go towards keeping yourself employed for a bit if you want the whole forgiveness amount) Something I found interesting in the certification: "To the extent feasible, I will purchase only American-made equipment and products." [link] [comments]  |
| Forgivable categories limited despite what the text of the legislation says Posted: 03 Apr 2020 02:16 AM PDT From the PPP guidance issued last night: The actual amount of loan forgiveness will depend, in part, on the total amount of payroll costs, payments of interest on mortgage obligations incurred before February 15, 2020, rent payments on leases dated before February 15, 2020, and utility payments under service agreements dated before February 15, 2020, over the eight-week period following the date of the loan. However, not more than 25 percent of the loan forgiveness amount may be attributable to non- payroll costs. While the Act provides that borrowers are eligible for forgiveness in an amount equal to the sum of payroll costs and any payments of mortgage interest, rent, and utilities, the Administrator has determined that the non-payroll portion of the forgivable loan amount should be limited to effectuate the core purpose of the statute and ensure finite program resources are devoted primarily to payroll. So they just completely ignored the text of the statute. Lovely. [link] [comments]  |
| Posted: 02 Apr 2020 11:38 AM PDT I was pushed into quitting my job in late February. I starting working toward opening my own signs and graphics shop. Obtained my business license on March 11th. Now my state is completely shut down due to the pandemic. I cant get unemployment because I quit my last job, and I didnt actually get to do any business through my company yet. So I have no documentation or proof of income with this business to apply for any help through loans or expanded unemployment. I only have the business license. Starting to run out of the money I had saved to get started because I am having to live off of it. Are there any options out there to help me? [link] [comments]  |
| The biggest issue with the EIDL delay no one is talking about. Posted: 03 Apr 2020 01:58 AM PDT To apply for PPP the total amount has to be reduced by your EIDL advance. Since no one knows that number, we can't really put it in the PPP loan request. This is why the 3 day number was so important. We likely needed that information in order to apply for the PPP effectively. This is such trash. I wrote my senator and congressional Rep. Everyone else should do the same. [link] [comments]  |
| Just got this email from Chase which included the following text. So much for that, eh? Posted: 02 Apr 2020 06:55 PM PDT Chase for Business Dear Business Client, Chase wants to help you get the Small Business Administration (SBA) Paycheck Protection Program emergency funds you may need to continue paying your employees and supporting your business. Financial institutions like ours are still awaiting guidance from the SBA and the U.S. Treasury. As a result, Chase will most likely not be able to start accepting applications on Friday, April 3rd, as we had hoped. Make no mistake – we will help you, our customer, with getting access to these emergency funds. And we will make it as easy as possible for you to get these funds quickly. We hope to have the guidance we need from the government soon so that we can begin assisting you. [link] [comments]  |
| SBA Loans & Advances - Call to Action Posted: 02 Apr 2020 08:37 AM PDT UPDATE- I HEARD BACK!! Response below. Hi Jacob, I received your message to Congressman Olson regarding your loan application and the advancement. You should be getting the advancement in your account tomorrow. If it doesn't show up, please complete the attached document and submit it to me via email in a PDF document and I'll contact the SBA on your behalf to track it down. ___ Applied for the SBA loan and advance on Sunday night (app number: 330000####), since then, I've gotten the run around from the SBA about status, next steps, etc... not sure the Agents that's answering the phones even know what's going on. Long story short, we've been waiting with no clear answers. Lets contact our reps./senators in Congress to get answers for us. After all, they do represent us... Find your rep/senator here: https://whoismyrepresentative.com/ or https://www.house.gov/representatives/find-your-representative Contact them. Some have options on their contact forms that say "Help with a federal agency" = Small Business Administration (SBA). Let them know you're seeking straight answers about your loan application status and advance of up to $10,000 to help your business through these though times. They will get in contact with the agency on your behalf and update you. If you hear back from the SBA and/or your reps./senators, please let us know. I emailed my rep & senator and will update once I hear back. [link] [comments]  |
| Some Clarification on EIDL $10k Grant Posted: 02 Apr 2020 11:09 AM PDT Ok, so I applied for the EIDL loan using the streamlined app on Monday (03/30/20) morning. My number is 3300054xxx to give you an idea. As of today I have not heard anything, by phone email, or otherwise... I called several times and ended up talking to a guy named Joe at SBA. He was very helpful, and while I know people are getting various answers, I wanted to share what I learned. *This applies to the Economic Injury Disaster Loan (EIDL) only, not the Payroll Protection Loan -The grants are up to $10k, but if your numbers support a loan greater than $10k you should get all $10k pretty quickly. (He did not know what formula they use, but said it has nothing to do with employee number, only probable loan amount) -The 3 day period starts when the app is accepted i.e. it's assigned to a loan officer and you get a call verifying your banking info. The loan officers are then firing off the direct deposits after they check your bank Acct info. -According to Joe this loan program has been available for 3 weeks (the old long form) and he has talked to customers that have signed docs and are being funded -He had no timeframe, but thought I should hear from a loan officer within 2 weeks. He said the loan officers are double checking bank info and firing off the grants almost immediately -He admitted this is a mess and an unprecedented demand, but said they are working tirelessly to fund loans and he has never seen SBA loans be processed so quickly (averaging 1 week from assignment to doc signing) -The new streamline app replaced the old one, so just complete the streamlined app and as long as you get the application number -He has no idea what the timeline was, but said I should hear from someone within 2 weeks. Hope this helps, keep your heads down, we're gonna make it! [link] [comments]  |
| SBA just released new regs for the PPP Posted: 02 Apr 2020 06:52 PM PDT Unfortunately, it seems to completely exclude the situation where you pay your employees as sub-contractors (1090's). https://content.sba.gov/sites/default/files/2020-04/PPP--IFRN%20FINAL.pdf [link] [comments]  |
| Posted: 02 Apr 2020 09:21 PM PDT Title says it all. On their PPP page, under the 'Eligible' section it says:
Even if your business has been banking with them for years it is not good enough. Shame on them! [link] [comments]  |
| New Guidelines/FAQ on PPP posted on Treasury website - 4/2 evening Posted: 02 Apr 2020 07:39 PM PDT I have been checking on this every few minutes and just noticed they have posted a lot more details on the PPP. I would think banks have enough info to open up the application process on Friday. https://home.treasury.gov/policy-issues/top-priorities/cares-act/assistance-for-small-businesses Detailed Fact Sheet: https://home.treasury.gov/system/files/136/PPP--Fact-Sheet.pdf Interim Final Rule: https://home.treasury.gov/system/files/136/PPP--IFRN%20FINAL.pdf The final rule has a bunch of open sections, so guessing there will be a final version. [link] [comments]  |
| JPM Chase will NOT be ready for SBA PPP tomorrow. Posted: 02 Apr 2020 02:20 PM PDT Anyone surprised? Likely that other (maybe ALL other) lenders will also not be ready. [link] [comments]  |
| 10k Grant Directly From Bill - Quoted Info from Care Act Posted: 02 Apr 2020 06:03 PM PDT Accountability is important to me. I know some peoples opinion is that we should just hang on - but I like to investigate and see more in depth. I ran across this where it shows that we should be able to request an amount in the Care Act on Congress.gov It states " in response to COVID–19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant within 3 days after the Administrator receives an application from such applicant. " It also states, " (3) AMOUNT.—The amount of an advance provided under this subsection shall be not more than $10,000." So maybe they just way overextended the program? I was in the 79,000s so we'll see if they issue the grant in the night or morning. Just curious other like minded individuals thoughts on this and the specific verbiage in the Care bill. [link] [comments]  |
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