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Great News! Just received the EDIL & PPP LOAN FUNDS.

GREAT NEWS! Finally got the EDIL & PPP loans of $5,000 after two months of getting denials and doors slam shut in our face. Getting the funds is one thing, but figuring out the rules & how to correctly document the use of the funds so as to guarantee the funds are forgivable is another challenge. 1 cpa firm told me since i received the EDIL on 4/28/20, I could back pay the staff in the month of April but must use the funds in 8 weeks total. And the bank told me for the PPP loan portion i just received yesterday (5/12/20) based on the new information they received from the SBA we can only use the funds to cover payroll expenses for 8 weeks from the time I received the funds going forward. They said for sole proprietors & independent contractors to write a check payable to themselves as payroll & clearly document time period & keep copy of check for proof. Also we could use the entire loan for payroll or use up to 25% of it to cover utilities. We must make sure at lease 75% covers payroll in order for it to be forgiven. Any advise on how to correctly document/use the EDIL would be greatly appreciated. To encouage you all don't stop applying for the PPP loan keep calling your banks and any bank who is still accepting applications & ask to speak with top managers or an expert in the business loan department. I found by doing so not everyone understood the process and their 1st response is a fat "NO". But as I pushed pass the "NO" and excellerated my calls to top management, I was able to finally get a hold of a manager who knew the process and walked me through filling out the correct forms for the PPP loan and a month later I got help. Here in Arizona we are slowly re-opening up for business as of 5/11/20 and I have been getting more calls for airport shuttle service as folks are slowly starting to travel again. However we can't offer ride-share to capacity as before due to the covid-19 safety & folks maybe required to wear mask at all times. Thanks for reading, hang in there my prayers are with you all in this epidemic.
3 REPLIES 3
Community Manager

Hi @Azshuttleselect! Great news for you but obviously confusing as to how to proceed. Thanks for coming back and giving us an update. Hopefully other community members may have had some experience with this and can add some thoughts. Keep us posted on how it goes and what you learn. Take care!

Rachel

RachelM - GoDaddy | Community Manager | 24/7 support available at x.co/247support | Remember to choose a solution and give kudos.
Super User II Super User II
Super User II

Thank you for including all of that information @Azshuttleselect. Additionally I am happy to see the money is getting to where it is supposed to. I have some clients that received funds and yes the PPP loan means that 75% has to be used to pay staff.

 

One thing I would caution business owners to be aware of is timing. These funds are taking some time to get into the hands of small business owners. Sadly some employees cannot not wait on government business funds to come through from their employer. I caution on providing pay (even back pay) to any employee who may have already requested, is receiving or may receive unemployment from their local government.

 

I do not want anyone to get into tax trouble and with funds coming from many directions it can be easy to lose track. When you spend any of your government loan money please keep records. Also take note that funds from unemployment can be taxed. This will truly be a interesting year for taxes.

 

...turns out that my two cents is worth less or more depending on the current exchange rate.

roy darling *my posts seem a lot shorter in my head

Great advice and make a lot of sense. thank you