Orlando Ayala Cant Read said:

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lazuras_dc said:

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ol'Porkbelly said:

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Question: Wells Fargo, who we bank with, is seemly dragging their feet on this, arguably with good reason. Should I try to contact a different bank to get this ball rolling? I have heard conflicting reports that basically say stick with your existing bank or else you may be put at the back of the line at a 'new' bank, and maybe get left empty handed when the money runs out.

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Every bank is in the same boat. SBA moved their guidance until tomorrow afternoon. No one knows much at this time. Pretty much just best guesses on the application process and what all is needed and how long it will take for the loan to originate.

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agree with this. every bank is totally slammed right now.

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I work for a lender that was fully intending to offer these but it has been an absolute C-F trying to get it rolled out. We are working 16+ hour days trying to manage this (along with the various other issues this whole Covid fiasco has brought us). Not complaining, happy to have a job, but I am very interested to see if other lenders are ready to go with these tomorrow. It has been a moving target getting guidance from the SBA not to mention the half dozen other agencies that have their thumb on the lending industry.

Our biggest concern now is doing something wrong that ends up disqualifying our customer's loan from forgiveness. We are still rocking along, but there has been some internal discussion to just pull the whole thing and spend our time and resources on internal loan deferral programs.

Jimmy Conway said:

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Also, on the SBA disaster loans if I have multiple businesses and more than one business is suffering can I apply for each business?

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My reading is if you have a total between all companies of under 590 employees, then yes. Consultant the banks and CPA for more details.

Heard the same from several lenders.

I had one guy tell me it's risk they don't want to take if things aren't clarified.

I talked to about 20 banks today (part of my job is to talk to lenders). All were excited about the program and think it's a good thing. More than half were concerned about the guidance thus far. About the same number were unsure if they would participate. Most were concerned with the lack of a secondary market for the loans (yes, technically the loans can be sold into the secondary but certain fees make it too costly for the market to exist for these loans).

encinoag said:

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Premium said:

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Maybe I'm wrong, but aren't these incentives enough for every bank to want a piece of the pie?:

How will lenders be compensated?

Processing fees will be based on the balance of the financing outstanding at the time of final disbursement:

Loans $350,000 and under: 5.00%
Loans greater than $350,000 to $2 million: 3.00%
Loans greater than $2 million: 1.00%

Lenders may not collect any fees from the applicant.

https://home.treasury.gov/system/files/136/PPP%20Lender%20Information%20Fact%20Sheet.pdf

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Making $ with zero risk!

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Not at all true. It's the SBA. There will be potential pitfalls for the bank that would eliminate their guarantee and at this volume and pace I won't be shocked if not all of them are done perfectly right. Considering that the very nature of this program is that they're lending to at risk borrowers it's far from a risk free deal.

Almost midnight...apps can start being filled out online...

swampdog01 said:

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Almost midnight...apps can start being filled out online...

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If you or anyone else have an inside route to getting this done quickly I'd appreciate a PM. Our banks are not very responsive or we are not very confident in them getting us processed quickly enough.

Has anyone seen a link for Bank of America to apply online for PPP loan ? I can't find one.

I have not seen anything lately on Help for my 1099 crews? Are they eligible?

As of 0730 BB&T was on their call digesting the final rules which came out pretty late yesterday.

CCred92 said:

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I have not seen anything lately on Help for my 1099 crews? Are they eligible?

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Contractors will apply directly. You cannot count them in your math.

LOYAL AG said:

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CCred92 said:

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I have not seen anything lately on Help for my 1099 crews? Are they eligible?

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Contractors will apply directly. You cannot count them in your math.

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Per the interim rule details, listen to LOYAL AG.

LOYAL AG said:

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CCred92 said:

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I have not seen anything lately on Help for my 1099 crews? Are they eligible?

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Contractors will apply directly. You cannot count them in your math.

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So if we have (3) 1099 sales agents, they wouldn't count for payroll?

What about as number of employees?

AgLA06 said:

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LOYAL AG said:

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CCred92 said:

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I have not seen anything lately on Help for my 1099 crews? Are they eligible?

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Contractors will apply directly. You cannot count them in your math.

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We were advised to and did include 2 of our 1099's in our application

So if we have (3) 1099 sales agents, they wouldn't count for payroll?

What about as number of employees?

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Sorry. Screwed up above post.
We were advised by our community bank to include 2 of our 1099's and we did in our application.

TAMU77CLAY said:

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Sorry. Screwed up above post.
We were advised by our community bank to include 2 of our 1099's and we did in our application.

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The most recent guidelines from last night clearly states 1099s are not included, however there was so much confusion to this point its hard to blame anyone for getting it wrong.

Independent contractors and "gig economy" workers and self employed workers are eligible for the PPP program.

The guidance is confusing and changing but we have been advised that they apply on their own since they are technically an employee of no company except their own.

kag00 said:

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Independent contractors and "gig economy" workers and self employed workers are eligible for the PPP program.

The guidance is confusing and changing but we have been advised that they apply on their own since they are technically an employee of no company except their own.

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Correct they are eligible to apply on their own, but not as a base for another entity that uses their services.

So Amegy just called and then emailed a document with the information they say you will need. They say you will need it because they are creating an application different than the treasury department/ sba PPP application. Of course they're requesting info different than the treasury guidance.

Of course it's still not ready because they're freaking making their own instead of using what the government provided while other companies are applying.

This entire process has SUCKED! I'm beyond frustrated.

As of 2pm BBVA bank's application is up and running. As of yesterday they were only going to take apps for existing business customers.

swampdog01 said:

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As of 2pm BBVA bank's application is up and running. As of yesterday they were only going to take apps for existing business customers.

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Yep, took me a couple minutes to apply through them once I got the email.

swampdog01 said:

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As of 2pm BBVA bank's application is up and running. As of yesterday they were only going to take apps for existing business customers.

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Thanks for the update, we were pending two other banks that seemed to say Sunday was the earliest they'd be ready. Thankfully I saw this and BBVA is a current bank for us... applying now!

Jimmy Conway said:

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Basic (and maybe a dumb question):

So once I do all the payroll paperwork, do I need to keep paying my employees right now to qualify for them reimbursing me? If so, and if hourly employees are not working at all how do I calculate what to pay them? (And still expect to get help) .

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Think this got lost earlier in the thread. Can't get my lender to answer either so maybe nobody knows but if you do, please do let me know.

Just need to know if my hourly employee is not getting any work at all right now (zero hours) how should I pay them during this period in a manner that gets me reimbursed? What kind of hours do I pay them for? Or do I not pay them at all but just give an assurance they will be rehired?

Our non-profit has applied for the PPP and our banker told us that so far only Bank of America has access to the portal for banks to submit the applications. A friend in Dallas said their non-profit applied through Bank of America and it took the bank 5 tries to get the application to be accepted into the portal.

Uploading all the req and app now to banks/sba website! Hopefully save my people

I've read everywhere that U.S. based contractors and part time contractors could not be used in the calculations, but then I read this on a Frost email. Does this make sense?

Quote:

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How much can I borrow?

Businesses can borrow up to 2.5 times their average monthly payroll from the previous year. You can include U.S.-based contractors and part-time employees in your calculations. However, for the purposes of this loan, payroll is capped at $100,000 per employee.

There is a cap of $10 million dollars per business for this loan.

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Premium said:

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I've read everywhere that U.S. based contractors and part time contractors could not be used in the calculations, but then I read this on a Frost email. Does this make sense?

Quote:

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How much can I borrow?

Businesses can borrow up to 2.5 times their average monthly payroll from the previous year. You can include U.S.-based contractors and part-time employees in your calculations. However, for the purposes of this loan, payroll is capped at $100,000 per employee.

There is a cap of $10 million dollars per business for this loan.

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It makes sense but it's incorrect. 24 hours ago that's what everyone was saying even though the law said contractors had to apply directly. Then the final rules said they have to apply directly. If your bank is telling you to include 1099 they are wrong.

LOYAL AG said:

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Premium said:

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I've read everywhere that U.S. based contractors and part time contractors could not be used in the calculations, but then I read this on a Frost email. Does this make sense?

Quote:

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How much can I borrow?

Businesses can borrow up to 2.5 times their average monthly payroll from the previous year. You can include U.S.-based contractors and part-time employees in your calculations. However, for the purposes of this loan, payroll is capped at $100,000 per employee.

There is a cap of $10 million dollars per business for this loan.

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It makes sense but it's incorrect. 24 hours ago that's what everyone was saying even though the law said contractors had to apply directly. Then the final rules said they have to apply directly. If your bank is telling you to include 1099 they are wrong.

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We applied on BBVA and did not include 1099, but that email came across and made me scratch my head...

Quote:

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How are payroll costs calculated?
The CARES Act defines payroll costs as: The compensation of an employee (whose principal residence is in the United States), including:

• Salary, wage, commission or other compensation (not to exceed $100,000 per year, as prorated for the covered period)
• Cash tip or equivalent
• Payment for vacation, parental, family, medical or sick leave (unless the employer receives a credit under the Families First Act)
• Allowance for dismissal or separation
• Group healthcare benefits, including insurance premiums
• Retirement benefits
• State/local payroll taxes (not federal payroll taxes); and
• Payments to independent contractors (not to exceed $100,000 per contractor per year, as prorated for the covered period)

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https://www.chase.com/personal/investments/learning-and-insights/article/small-business-owners-faq-cares-act

Also found this on the "Final Rule", 2 a ii:

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ii. You were in operation on February 15, 2020 and either had employees for whom you paid salaries and payroll taxes or paid independent contractors, as reported on a Form 1099-MISC

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https://content.sba.gov/sites/default/files/2020-04/PPP--IFRN%20FINAL.pdf

Nevermind on the above, it looks like those are just to be "eligible or certified"... it explicitly says no independent contractors. Maybe Chase is wrong...

Premium said:

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Nevermind on the above, it looks like those are just to be "eligible or certified"... it explicitly says no independent contractors. Maybe Chase is wrong...

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Not just Chase. I've seen half a dozen banks yesterday and today asking for 1099, some asking for the 1096 even. The underwriting criteria is a bit odd. The rules are very lax yet we have banks treating them like a standard SBA loan.

swampdog01 said:

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As of 2pm BBVA bank's application is up and running. As of yesterday they were only going to take apps for existing business customers.

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Hmmm, we were advised that we could not limit loans to existing customers. If we were going to participate we had to make loans to any eligible person that applied. We put the brakes on the rollout, last night's guidance was more helpful than previous, but SBA folks are still telling different stories.

unmade bed said:

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swampdog01 said:

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As of 2pm BBVA bank's application is up and running. As of yesterday they were only going to take apps for existing business customers.

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Hmmm, we were advised that we could not limit loans to existing customers. If we were going to participate we had to make loans to any eligible person that applied. We put the brakes on the rollout, last night's guidance was more helpful than previous, but SBA folks are still telling different stories.

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I don't do the loans I'm just telling you what I was told. I asked again about 5pm today for a client who has personal but not business banking and was told it's only for current business customers. The reason given is there's a limited supply of loan money so take care of existing businesses first, plus anecdotely existing clients are less likely to commit fraud.

swampdog01 said:

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unmade bed said:

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swampdog01 said:

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As of 2pm BBVA bank's application is up and running. As of yesterday they were only going to take apps for existing business customers.

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Hmmm, we were advised that we could not limit loans to existing customers. If we were going to participate we had to make loans to any eligible person that applied. We put the brakes on the rollout, last night's guidance was more helpful than previous, but SBA folks are still telling different stories.

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I don't do the loans I'm just telling you what I was told. I asked again about 5pm today for a client who has personal but not business banking and was told it's only for current business customers. The reason given is there's a limited supply of loan money so take care of existing businesses first, plus anecdotely existing clients are less likely to commit fraud.

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No I understand and we were wanting to go that route (existing customers only), among other things for BSA (Bank Secrecy Act) purposes. SBA told us their guarantee would only apply if we offered loans to all applicants and we could t refuse applications from non-customers. Told us only criteria for making the loan or not could be those set out in the law. I see BoA and others are doing the customer only route as well, so maybe they are getting difference guidance or are just rolling the dice on getting the loans guaranteed.