EIDL from the SBA Loans for Emergency Medicine Docs?

[deleted1027621]

Kinda controversial, but here goes. I was hoping for everyone's opinions and what everyone plans to do. As a part of the CARES bailout including for small businesses there is a large amount allocated to small businesses to loan money for payrolls, rent, etc. (I am NOT an expert!) Some of these loans used for this purpose would be forgiven if used for payroll. It is prorated for high earners (greater than $100,000), but seems to still be available for doctors at this prorated amount. Are you independent contractors planning on applying for these forgivable loans? There seems to be a lot of unclear details.

I am torn as I am still working, but I would hate to miss out on forgiven loan money when I know I will be paying for this stimulus through taxes for the rest of my working career.

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[cyanide12345678]

I plan on applying for the PPP loan when it becomes available to apply.

 

[RustedFox]

Count me in.

 

[deleted1027621]

I am feeling pretty unsure as my hours aren't cut and my rate hasn't been cut. I am on track to make the same amount as I usually would, if not a bit more during this pandemic. I don't want to end up being accused of fraud.

 

[deleted109597]

I mean, my issue is that my monthly payroll is pretty low, as the rest is all taxes/dividends. I wonder how that would work.

 

[RustedFox]

I plan on applying for the PPP loan when it becomes available to apply.

I hope you use this money to prosecute the fools who treated your wife dangerously.

 

[Porfirio]

Hours cut because of this virus, yep gonna apply.

 

[deleted1027621]

I pay myself from my LLC $19,000 a month (so I can max my SEP plus a little extra as I am a bit paranoid regarding taxes, hence this post). The PPP is maxed to prorate to a salary of $100,000, so I would be hypothetically eligible for about $20.800. That is a nice chunk of change. I do not know yet if my hours will be cut. I picked up some extra shifts at my PRN site as they had a sudden retirement. I am struggling with if I should take it as I do have "economic uncertainty."

 

[RustedFox]

Can anyone post the data as to how to apply for this so we can strike when the iron is hot?
After all, we pay for this in our tax dollars, so I have no qualms about applying.

 

[deleted109597]

Yep. This wouldn't make me have heartburn at all

 

[NYEMMED]

I have the same concerns. Is it legal to take these loans? Interest rate is much lower than my student loans....

 

[cyanide12345678]

I have the same concerns. Is it legal to take these loans? Interest rate is much lower than my student loans....

If you are a legitimate business and you use the funds for salary then it should be legal.

Though i personally see a drop in revenue for my S corp in may when I'm on baby sitting duty because our day cares are shut down. Only working a couple of shifts in May.

 

[cyanide12345678]

FYI If you have a business account with Chase or BOA then the application for PPP loan is officially online. I just submitted mine through Chase. Pretty simple preliminary form - they will apparently contact us for more information and have us show proof of payroll cost (employee w2, 940/941 forms), and then will ask us to submit the sba application that is on the sba.gov website.

 

[cyanide12345678]

Also, for everyone who will continue to have the same income, there is a section in the application where you certify that there is extreme financial hardship without this loan for the business where the entity cannot fulfill it's obligations. That might be hard to do if you make exactly the same 1099 income. Another statement on the application states that any falsification may result in up to 250k in fines.

My s corp revenue drops from 38k to 9.5k in May. Infact my w2 income of 15k per month that my s corp pays me will not be met by the revenue from that month. I'll probably ask for between 10-15k instead of the full 20k that i otherwise could apply for.

But anyone who doesn't have a large decline in salary, should think long and hard before applying.

 

[cyanide12345678]

Link to chase application

PPP Loan Forgiveness | Chase for Business | Chase.com

Get the up-to-date information you need about 2020 and 2021 PPP loan forgiveness. Check out our resources, including FAQs and our PPP forgiveness checklist.

recovery.chase.com

Link to government application that you will eventually sign.

PPP First Draw Borrower Application Form | U.S. Small Business Administration

Notice: The Paycheck Protection Program (PPP) ended on May 31, 2021. Existing borrowers may be eligible for PPP loan forgiveness.

www.sba.gov

 

[deleted109597]

BBVA business accounts have the links as well.
I feel like this is something that would certainly make you prime for an audit next year. If I were earning less, I would apply. Right now it doesn't appear like I will, but if/when it happens then I can pull it up.