CARES Relief Act

[Arks]

Yes, I applied this afternoon at https://disasterloan.sba.gov/ela/ for a $60,000 loan to cover my huge monthly mortgage payment, utilities, insurance, etc. for the next few months. The first $10,000 is a grant. Doesn't have to be repaid. The balance is a 30-year loan at, I think, 3.75% interest.
The webinar I watched said 90% are being approved, and even if you don't get approved, you get the $10,000 grant. But there's "only" $10 billion set aside for this, and it's first come, first served.
The application sounds like it's for a flood or tornado or something, but one of the categories it pays for is "Economic Injury". That's the one we are suffering..

Does our state have to be officially declared a disaster area?
.

Does our state have to be officially declared a disaster area?

No

 

[GoodScout]

My only question filling out the form is on the supplemental form (P-019) where it asks for our past 12 months' revenue and COGS.
After that, it asks "Rental properties (residential and commercial) only. Lost rents due to the disaster:"
I don't know whether I fill in a projection of my lost reservation revenues or leave it open. My instinct is the latter, since anything I put in will be a WAG (wild-ass guess). They know what we did last year, so I would assume they would calculate based on that.

 

[Morticia]

Anyone else applying for unemployment?

 

[GoodScout]

FYI, for those filling out EIDL requests, the website was updated Monday morning to include a click box to request an immediate $10,000 if you qualify.
If you haven't completed your application, make sure you go back and reload the page so you don't have the old one from your cache.
In filling out the new EIDL application, they ask you for the basic information and then you submit. They say they'll email you back to ask for any additional documentation, so I would recommend going back and having those forms filled out and ready so it won't slow things down.
Advice from my SBA and a VC friend is go ahead and apply for the EIDL - you can always roll it into the PPP if you decided to go that route as well later.

 

[Morticia]

FYI, for those filling out EIDL requests, the website was updated Monday morning to include a click box to request an immediate $10,000 if you qualify.
If you haven't completed your application, make sure you go back and reload the page so you don't have the old one from your cache.
In filling out the new EIDL application, they ask you for the basic information and then you submit. They say they'll email you back to ask for any additional documentation, so I would recommend going back and having those forms filled out and ready so it won't slow things down.
Advice from my SBA and a VC friend is go ahead and apply for the EIDL - you can always roll it into the PPP if you decided to go that route as well later..

We called today and the local sba had no additional info. They are still waiting for info from the main office. We’ve already filled the paperwork. It’s possible that we jumped the gun by filling yesterday.

 

[Silverspoon]

FYI, for those filling out EIDL requests, the website was updated Monday morning to include a click box to request an immediate $10,000 if you qualify.
If you haven't completed your application, make sure you go back and reload the page so you don't have the old one from your cache.
In filling out the new EIDL application, they ask you for the basic information and then you submit. They say they'll email you back to ask for any additional documentation, so I would recommend going back and having those forms filled out and ready so it won't slow things down.
Advice from my SBA and a VC friend is go ahead and apply for the EIDL - you can always roll it into the PPP if you decided to go that route as well later..

We called today and the local sba had no additional info. They are still waiting for info from the main office. We’ve already filled the paperwork. It’s possible that we jumped the gun by filling yesterday.
.

Our state government has told all that want to file for unemployment CARES benefits to wait until the state receives information from the feds. In fact, I hate to tell you that applying early, before the new forms etc are in place, can foul up the system.

 

[Momma Smurf]

FYI, for those filling out EIDL requests, the website was updated Monday morning to include a click box to request an immediate $10,000 if you qualify.
If you haven't completed your application, make sure you go back and reload the page so you don't have the old one from your cache.
In filling out the new EIDL application, they ask you for the basic information and then you submit. They say they'll email you back to ask for any additional documentation, so I would recommend going back and having those forms filled out and ready so it won't slow things down.
Advice from my SBA and a VC friend is go ahead and apply for the EIDL - you can always roll it into the PPP if you decided to go that route as well later..

We called today and the local sba had no additional info. They are still waiting for info from the main office. We’ve already filled the paperwork. It’s possible that we jumped the gun by filling yesterday.
.

I would wait to file with your local bank which should happen very soon.

 

[Arks]

This a tax-free grant (they call it an Advance) of $1000 they're giving to every US business that applies, while the $10 billion fund holds out. This is separate from a loan. Everybody should apply. You get the grant whether you get a loan or not. It's a grant. It doesn't have to be repaid. They WANT you to get the money, and spend it to stimulate the economy.
I filled out the "old" application over the weekend. This evening I got this message from them:
If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.
It said it would take about 2 hours to complete, but because I'd recently gotten info together for my taxes, it took me about 20 minutes.

 

[Morticia]

This a tax-free grant (they call it an Advance) of $1000 they're giving to every US business that applies, while the $10 billion fund holds out. This is separate from a loan. Everybody should apply. You get the grant whether you get a loan or not. It's a grant. It doesn't have to be repaid. They WANT you to get the money, and spend it to stimulate the economy.
I filled out the "old" application over the weekend. This evening I got this message from them:
If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.
It said it would take about 2 hours to complete, but because I'd recently gotten info together for my taxes, it took me about 20 minutes..

We got the email this morning. Glad to know the short form takes 2 hours. The long form took 8.

 

[Momma Smurf]

This a tax-free grant (they call it an Advance) of $1000 they're giving to every US business that applies, while the $10 billion fund holds out. This is separate from a loan. Everybody should apply. You get the grant whether you get a loan or not. It's a grant. It doesn't have to be repaid. They WANT you to get the money, and spend it to stimulate the economy.
I filled out the "old" application over the weekend. This evening I got this message from them:
If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.
It said it would take about 2 hours to complete, but because I'd recently gotten info together for my taxes, it took me about 20 minutes..

This a tax-free grant (they call it an Advance) of $1000 they're giving to every US business that applies, while the $10 billion fund holds out. This is separate from a loan. Everybody should apply. You get the grant whether you get a loan or not. It's a grant. It doesn't have to be repaid. They WANT you to get the money, and spend it to stimulate the economy.
I filled out the "old" application over the weekend. This evening I got this message from them:
If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.
It said it would take about 2 hours to complete, but because I'd recently gotten info together for my taxes, it took me about 20 minutes.

Are you putting in lost rents? Or just putting in Gross Revenues less Cost of Goods?
And thanks for posting this.

 

[Arks]

I put in a 6-month estimate of lost rentals.
Sadly, I don't really think things can return to normal until we have a successful vaccine, which, even if they bend the rules a little*, is still a year or more away. Maybe people can eventually figure out a safe way to travel a little and do it safely, but at this point nobody's sure, so we err on the side of extreme caution.
-------------------------------------------------
* The reason they can't bend the vaccine testing rules much is that they just cannot risk giving all of humanity a vaccine only to discover that, a few months later, the vaccine ends up killing more people than the disease did. They have to get it right. Over a period of 100 years they've figured out the safe way to do it, and they'll stick with that.

 

[JimBoone]

This a tax-free grant (they call it an Advance) of $1000 they're giving to every US business that applies, while the $10 billion fund holds out. This is separate from a loan. Everybody should apply. You get the grant whether you get a loan or not. It's a grant. It doesn't have to be repaid. They WANT you to get the money, and spend it to stimulate the economy.
I filled out the "old" application over the weekend. This evening I got this message from them:
If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.
It said it would take about 2 hours to complete, but because I'd recently gotten info together for my taxes, it took me about 20 minutes..

If you wish to apply for the Advance on your EIDL, please visit www.SBA.gov/Disaster as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.

What number is being used for COST OF GOODS since we are not selling physical items? Are we using our operating expenses as costs of goods?

 

[GoodScout]

In our case, COGS includes Food Costs, Alcohol Bought for Consumption, Gift Shop items cost, any items we purchase and resale.
All of your other expenses in inn keeping are just expenses, not COGS.

 

[GoodScout]

Update on PPP and EIDL. You'll recall we applied the Monday after the bill passed, right after they updated the online forms the first time.
Just received my PPP loan deposited into my bank account this morning. It was $3k less than I originally thought, because they calculated my payroll on FY2019, not on a rolling 12 months that included my busy first-quarter ski season.
SO & I also got our personal stimulus payment deposited into our personal checking account today. Since we do taxes direct deposit, we're not affected by the delay caused by the Orange Cheeto holding up the physical checks so he can stamp his obnoxious signature on it.
Finally, it looks like we got a $5,000 deposit into our account from the IRS. I'm guessing that's the EIDL loan, although we got no documentation or paperwork about it. We had 5 employees at the end of February, so it seems to make sense. It's half of what was promised, but I guess it would be obscene for me to complain at this point.
So in short, we have money in the bank, and are no longer draining our savings, which was getting pretty thin. Today I get to figure out how I can make this money last until the end of June. It seems like a windfall, but I know what payments are sitting out there unpaid, and I know if I paid them all, my bank account would be empty. I described it as a 400-pound man trying to cover himself with a fig leaf.
I wish everyone luck going forward. If I can help any of you with discussions about these two programs, let me know.

 

[Arks]

Great, Phineas! I read somewhere yesterday that the PPP loans MAY be forgiven...don't have to repay. But that's probably another tease, they mention it then they take it away.
My own bank isn't a certified PPP lender, but another bank in town is, so I filled out forms yesterday to open a business checking account with them. Once that's finalized I can apply for the loan. Yes, it will be nice to have some money to draw on without having to drain my savings.

 

[GoodScout]

Great, Phineas! I read somewhere yesterday that the PPP loans MAY be forgiven...don't have to repay. But that's probably another tease, they mention it then they take it away.
My own bank isn't a certified PPP lender, but another bank in town is, so I filled out forms yesterday to open a business checking account with them. Once that's finalized I can apply for the loan. Yes, it will be nice to have some money to draw on without having to drain my savings..

The government has tasked the banks as being responsible for determining if you qualify to have the PPP loan forgiven. (There's no forgiveness on the EIDL loan). You will need to keep records to show that the money was spent for payroll (including pay, taxes, etc), utilities or mortgage interest (not principal).
So you'll need to hang on to receipts for utilities, and get a breakdown of mortgage interest/principal from your lender. Likewise, you'll have to have copies of your state and federal payroll tax filings to show how much you paid in payroll each month compared to the average for 2019.
Since you are also allowed to count whatever you pay to yourself up to $100,000, you shouldn't have difficulty proving to the bank you spent the money as the loan expects, and thus you're eligible for forgiveness. It will all come down to giving your bank the paperwork. Mine has been very good with me, and when this is over I plan to move my last business account over to them.

 

[Arks]

Update on PPP and EIDL. You'll recall we applied the Monday after the bill passed, right after they updated the online forms the first time.
Just received my PPP loan deposited into my bank account this morning. It was $3k less than I originally thought, because they calculated my payroll on FY2019, not on a rolling 12 months that included my busy first-quarter ski season.
SO & I also got our personal stimulus payment deposited into our personal checking account today. Since we do taxes direct deposit, we're not affected by the delay caused by the Orange Cheeto holding up the physical checks so he can stamp his obnoxious signature on it.
Finally, it looks like we got a $5,000 deposit into our account from the IRS. I'm guessing that's the EIDL loan, although we got no documentation or paperwork about it. We had 5 employees at the end of February, so it seems to make sense. It's half of what was promised, but I guess it would be obscene for me to complain at this point.
So in short, we have money in the bank, and are no longer draining our savings, which was getting pretty thin. Today I get to figure out how I can make this money last until the end of June. It seems like a windfall, but I know what payments are sitting out there unpaid, and I know if I paid them all, my bank account would be empty. I described it as a 400-pound man trying to cover himself with a fig leaf.
I wish everyone luck going forward. If I can help any of you with discussions about these two programs, let me know..

Finally, it looks like we got a $5,000 deposit into our account from the IRS. I'm guessing that's the EIDL loan...

I ran and checked my account, hoping for the EIDL advance. Nothing. Nothing there but withdrawals withdrawals withdrawals. The last deposit into my inn account was March 31

 

[Hillbilly]

Great, Phineas! I read somewhere yesterday that the PPP loans MAY be forgiven...don't have to repay. But that's probably another tease, they mention it then they take it away.
My own bank isn't a certified PPP lender, but another bank in town is, so I filled out forms yesterday to open a business checking account with them. Once that's finalized I can apply for the loan. Yes, it will be nice to have some money to draw on without having to drain my savings..

Our loan was just approved today. We are now just waiting on a closing date that we will do through the drive through. Money will then be deposited into our account at that time. We are staying on unemployment Until June 30th. That is when we have to hire ourselves back. So with being on unemployment we can get that plus the extra $600 a week for both my wife and I. Something to consider before you write a paycheck to yourself. You wont be able to be on unemployment after you take this for payroll. If you play your cards right you can do both.

 

[NRV Runner]

Update on PPP and EIDL. You'll recall we applied the Monday after the bill passed, right after they updated the online forms the first time.
Just received my PPP loan deposited into my bank account this morning. It was $3k less than I originally thought, because they calculated my payroll on FY2019, not on a rolling 12 months that included my busy first-quarter ski season.
SO & I also got our personal stimulus payment deposited into our personal checking account today. Since we do taxes direct deposit, we're not affected by the delay caused by the Orange Cheeto holding up the physical checks so he can stamp his obnoxious signature on it.
Finally, it looks like we got a $5,000 deposit into our account from the IRS. I'm guessing that's the EIDL loan, although we got no documentation or paperwork about it. We had 5 employees at the end of February, so it seems to make sense. It's half of what was promised, but I guess it would be obscene for me to complain at this point.
So in short, we have money in the bank, and are no longer draining our savings, which was getting pretty thin. Today I get to figure out how I can make this money last until the end of June. It seems like a windfall, but I know what payments are sitting out there unpaid, and I know if I paid them all, my bank account would be empty. I described it as a 400-pound man trying to cover himself with a fig leaf.
I wish everyone luck going forward. If I can help any of you with discussions about these two programs, let me know..

Just got our deposit today. I worked very closely with our local bank, mainly in making sure all our t's were crossed and i's were dotted. The $250 billion allocated loans ran out today.
Having a good relationship with a local lender was absolutely clutch in all this. As was pretty quickly figuring out which loan to apply for. Now it's a matter of how to allocate they money (payroll vs. utilities) to make sure we use all of it within 8 weeks.

 

[Arks]

The Paycheck Protection Program loan program is currently out of money and no longer accepting applications. Below is the notice now on their website. Maybe they'll get more funding later...
The SBA is currently unable to accept new applications for the Paycheck Protection Program based on available appropriations funding.