$10,000 received?

[ILLMAS]

Has any of your clients received their $10,000 yet?  I predict I will be receiving unlimited calls as to when to expect it.

[DANRVAN]

Just did one for our Church,  indication was given that the actual processing of the application would begin within one week.

[JohnH]

I am monitoring about a dozen applications for the  "up to $10K" EIDL request.  Most were submitted on or before March 31, 20120.  As of today (April 8), not a single one of them has received a deposit into their checking account.

 

[Abby Normal]

Why can't we ever do anything important, right?

[Lee B]

Supposedly, they getting ready to release the EIDL grants.

However they have decided to limit the grants to no more than $1,000 per employee, with a max of $10,000.

A drip in the bucket.

 

 

 

 

 

 

 

t

[Medlin Software, Dennis]

2 hours ago, cbslee said:

However they have decided to limit the grants to no more than $1,000 per employee, with a max of $10,000.

I saw that last night and about choked.  It was not the option for me, and may not have been the most beneficial, but it was supposed to have been the fastest, so some "gave up" more beneficial options to use EIDL.  Already had someone asking if I think they can refuse or cancel their EIDL so they could try to apply for PPP, or to wait for retention credit.

[Lion EA]

You can roll your EIDL into a PPP. Don't know the math of that, but there are experts out there who can explain how it works.

[ILLMAS]

5 hours ago, cbslee said:

Supposedly, they getting ready to release the EIDL grants.

However they have decided to limit the grants to no more than $1,000 per employee, with a max of $10,000.

A drip in the bucket.

 

 

 

 

 

 

 

t

What the !!!!   Was this just announced or did we all miss it?

[Medlin Software, Dennis]

The cynic in me says someone's primary has passed, and no longer cares about the ramifications.  The whole aid process was done so piecemeal because of bickering, there is no way anyone will understand it until it becomes history.  But, I cannot say I could have done better, and I am not crazy enough to become a politician.  The funny part (and comforting part I suppose) is at least the DOL is straight up about using their interpretation of Congress' intent, versus the actual law text.

[Abby Normal]

7 hours ago, cbslee said:

limit the grants to no more than $1,000 per employee

Well, that's just great. I just this week helped a family who runs a small grocery and food truck as a C corp. They have no employees and do all the work themselves. They are not taking any money out, yet, because they're reinvesting in their business. That means no EIDL advance/grant. This means almost no help for businesses without payroll.

[Lion EA]

PPP can be for non-employees starting tomorrow the 10th.

Plus, there are a LOT of other SBA loans.

[JohnH]

It has been my understanding that applying for this special $10K EIDL does not prohibit applying for the PPP.  As a matter of fact, the assumption is that the employer will apply for the PPP and the $10K EIDL advance will just be deducted from the amount ultimately approved in the PPP.  But I could be mistaken.

My next comment is not mistaken:

The 3-day window for the EIDL was either a come-on, an impossible administrative standard, or is subject to a few hidden definitions & conditions which were kept carefully hidden behind the curtain. The lack of clarity, coupled with what many applicants are now viewing as essentially another broken promise, is not creating any confidence.  If it turns out that the "up to $10K" actually results in a pittance of $1K per employee,  I think many very small mom & pop operators will simply regard it as a very bad joke played on them by cynical, disinterested  bureaucrats and politicians.  Nothing more than a blast of hot air designed to grab a few headlines.  In other words, business as usual in government. 

[Lion EA]

Some SBA loans prohibit other SBA loans. PPP is available if you have no other SBA loans (over some timeframe, such as last 7 months or something), but if your only other SBA loan is the EIDL, then you can roll your EIDL into the PPP.

[JohnH]

Well, SBA finally clarified their emergency EIDL with this missive today.  The rumors are correct - they're providing $1,000 per employee, even though the legislation says nothing about this limitation.

=====================================================

Dear Applicant,

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:

====================================================

[DANRVAN]

3 hours ago, JohnH said:

they're providing $1,000 per employee, even though the legislation says nothing about this limitation.

Actually John, the section 1110(e)(3) of the CARES ACT says "the amount....shall not be more than $10,000."

$10,000 was the upper limit, there was no lower limit set.

 

[JohnH]

Thanks for the correction. I definitely missed that. I should  have re-read the legislation before posting. 
 

[JohnH]

The EIDL arrived. I applied March 30 listing two employees. Nothing happened until this weekend when I was notified by my credit monitoring service of someone having run a credit inquiry on me.  When I took a look, the credit inquiry had been run by the SBA. 
 

This morning (April 20) a $2,000 deposit is showing in my business bank account.  So I guess the SBA decided 3 weeks was close enough to 3 days when it’s government involved.  
 

The good news for some of your clients is that the SBA funding may yet arrive even though they ran out of money last Thursday and no new legislation has yet passed.