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Re: Ask the Expert: Small Business Recovery Loans and Small Business Finance Tips

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Many thanks to all who viewed or had questions in the discussion over the last week. And to Felica (@FeeBrown), David (@DavidH519566) and Belva (@BelvaA) for their time, attention and guidance on this important topic. For more information, please visit https://www.aarp.org/work/small-business/ and https://www.sba.gov/. 

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Re: Ask the Expert: Small Business Recovery Loans and Small Business Finance Tips

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Right now, there are thousands of small businesses offering online courses in everything from marketing and podcasting, to budgeting and coding. Many are offering free classes and programs during the pandemic. You can use this time to learn a new skill or build upon your existing trade.

 

You can also follow suit and grow your online presence by offering online classes, teaching others about your unique business and expertise.

 

 

Belva Anakwenze
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Re: Ask the Expert: Small Business Recovery Loans and Small Business Finance Tips

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Looking forward to this discussion 

Thank You

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Re: Ask the Expert: Small Business Recovery Loans and Small Business Finance Tips

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The time for an EIDL decision is about thirty days. If you have an application number that means your application is in the queue. 

 

You apply for a PPP through a bank or non-bank lender. Most banks do not give business accounts to sole-proprietors and we know banks are only doing PPPs for their business account customers. You can apply with an online lender such as www.kabbage.com, www.lendio.com, or www.readycapital.com. 

 

Best, 

 

 

David Hincapie

Economic Development Specialist
Washington Metropolitan Area District Office (WMADO)
U.S. Small Business Administration

david.hincapie@sba.gov

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Re: Ask the Expert: Small Business Recovery Loans and Small Business Finance Tips

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Hi!

 

By last reply:You are eligible to apply for both programs, the EIDL and the PPP. For self-employed persons the PPP loan amount is based on the net profit on your schedule C.

 

where can I apply the ELDL and PPP? I had applied at SBA website by it did not receive any new application for PPP? I had applied ELDL at April 1, 2020 and the application confirmation number I had still received any feedback from ELDL? Can I re-apply the ELDL and where can I re-apply from internet? Thanks!

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Re: Ask the Expert: Small Business Recovery Loans and Small Business Finance Tips

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Message 6 of 43

Liksun,

 

You are eligible to apply for both programs, the EIDL and the PPP. For self-employed persons the PPP loan amount is based on the net profit on your schedule C. Thus it might be a small loan amount. The EIDL might be a more useful option for you even if it is not forgivable like the PPP loan. You should apply for both to see what's best for your circumstances. 

 

David Hincapie

Economic Development Specialist
Washington Metropolitan Area District Office (WMADO)
U.S. Small Business Administration

david.hincapie@sba.gov

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Re: Ask the Expert: Small Business Recovery Loans and Small Business Finance Tips

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I am self employed(small Chinese food carryout in Baltimore city Maryland State), I don’t have W-2 and have 1040 Schedule C, can I apply the SBA-PPP ? 

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Re: Ask the Expert: Small Business Recovery Loans and Small Business Finance Tips

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I had applied for PPP at Bank of America on April6, 2020. They acknowledged receiving my application and asked me to upload several financial documents using a link they provided. I completed that and verified that the documents were uploaded. 
I have not heard any status of my application from BOA since. 
My question is if my application is still in a que at BOA for processing after new funding from Congress.

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Re: PPP loan useage

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Patrick,

 

The purpose and intent of the PPP is precisely to keep people on payroll even if they are unable to work because it is unsafe to be open. Otherwise, if you lose employees while you are shut down, then when you re-open you will have to spend time and money to hire and train new people. 


Why would you need a loan when you re-open and have revenue? If you have revenue you can pay your employees, right?


It's all in the name: Paycheck Protection Program. While you are shut down you have no revenue and the natural thing to do would be to lay off employees. Normally one business losing all revenue and liquidating would only affect the employees and business owners directly involved.

But what if this happens to many businesses? What if it happens to fifty percent, or more, of businesses precisely because we are all staying home?

If, for example, fifty percent of American workers lost their incomes then we would enter a downward spiral into a depression, because unemployed persons have no money to spend, which means other businesses would lose revenue. And so on. 


Remember, other people's spending is your income, and by extension your employees' income. And your spending and your employees' spending is another business's income, and its employees income. 

 

So, the PPP protects your employees' paychecks and protects your business too in the long run too. 

 

David Hincapie

Economic Development Specialist
Washington Metropolitan Area District Office (WMADO)
U.S. Small Business Administration

david.hincapie@sba.gov

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Re: Ask the Expert: Small Business Recovery Loans and Small Business Finance Tips

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Larry and Patricia, 

 

Partnerships like yours are eligible for the PPP and the EIDL. For the PPP we will use the partnership's net earnings to calculate your compensation and with that your PPP loan amount. That is, you do not apply individually, but instead apply at the partnership level as rent, mortgage interest, utilities, etc. are incurred at the partnership level, not as individual persons. As long as you meet the conditions for forgiveness, you will not have to repay this loan. You can apply for a PPP through your bank, if they are already an SBA Preferred Lending Partner or if they have recently signed up to be a PPP lender. 

 

You are also eligible to apply for an Economic Injury Disaster Loan (EIDL). It is a direct loan from the SBA and you apply for it at disasterloan.sba.gov

 

This loan is for six months of working capital. We will calculate the loan amount using the financial information in your application. The loan money can be used for payroll (if you have a payroll), mortgage notes, notes payable, accounts payable, and other fixed costs and obligations that you cannot pay now because of the emergency. This loan is not meant to replace profits or lost sales. It is working capital to help you meet the obligations your business has. 

 

Very best, 

 

David Hincapie

Economic Development Specialist
Washington Metropolitan Area District Office (WMADO)
U.S. Small Business Administration

david.hincapie@gmail.com

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