SBA (Small Business Administration) loans

[Sparkles]

Your next to last bullet point,
“If you have a loan under this program, payments will be deferred to end of year”
Is that any SBA loan or just loans under the disaster assistance relief program?



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[TeamAmerica]

When you say 'backed loans that a forgivable" does that mean someone can get a loan, not pay loan back and it's forgivable?

A portion or all of the loan will be forgiven assuming the borrower continues to pay payroll (limited to actual amount paid for payroll). It applies to employees making $99,999 or less annually.

SEC. 1105. LOAN FORGIVENESS.
(a) Definitions.—In this section—

(1) the term “covered 7(a) loan” means a loan guaranteed under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) that is made during the covered period;

(2) the term “covered period” means the period beginning on March 1, 2020 and ending on June 30, 2020;

(3) the term “eligible recipient” means the recipient of a covered 7(a) loan; and

(4) the term “payroll costs” shall not include—

(A) the compensation of an individual employee in excess of $33,333 during the covered period;

(B) qualified sick leave wages for which a credit is allowed under section 7001 of the Families First Coronavirus Response Act; or

(C) qualified family leave wages for which a credit is allowed under section 7003 of the Families First Coronavirus Response Act.

(b) Forgiveness.—An eligible recipient shall be eligible for forgiveness of indebtedness on a covered 7(a) loan in an amount equal to the cost of maintaining payroll continuity during the covered period.

[TeamAmerica]

Your next to last bullet point,
“If you have a loan under this program, payments will be deferred to end of year”
Is that any SBA loan or just loans under the disaster assistance relief program?



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(g) Deferment Of 7(A) Loans.—

(1) DEFINITIONS .—

(A) ELIGIBLE BORROWER.—The term “eligible borrower” means—

(i) a small business concern; or

(ii) an organization made eligible by subsection (b) of this section for a loan under section 7(a) of the Small Business Act (15 U.S.C. 636(a)).
(B) IMPACTED BORROWER.—

(i) IN GENERAL.—In this subsection, the term “impacted borrower” means an eligible borrower that—

(I) is in operation on March 1, 2020; and

(II) has an application for a loan made under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) that is approved or pending approval on or after the date of enactment of this Act.

(ii) PRESUMPTION.—For purposes of this subsection, an impacted borrower is presumed to have been adversely impacted by COVID–19.

(2) DEFERRAL.—During the covered period, the Administrator shall—

(A) consider each eligible borrower that applies for a loan under section 7(a) of the Small Business Act (15 U.S.C. 636(a)) to be an impacted borrower; and

(B) require lenders under such section 7(a) to provide complete payment deferment relief for impacted borrowers with loans guaranteed under such section 7(a) for a period of not more than 1 year.

[Burnadell]

You two banker arguing over net interest margin...can either one of your banks beat my long time friend's numbers below? How about 6.48% NIM?




I was a banker for 24 years, and can remember in the early 80's when our Prime Rate was 22%. I could not have fathomed the cost of funds being as low as they are now!

[tps7742]

Yes Burnadell I remember 80s. Our first home loan was going 14% when we applied but dropped to 12% prior to closing in early 1983 with points. Of course we refinanced several times over the years.

[RdRdrFan]

You two banker arguing over net interest margin...can either one of your banks beat my long time friend's numbers below? How about 6.48% NIM?

[ATTACH]997226[/ATTACH]


I was a banker for 24 years, and can remember in the early 80's when our Prime Rate was 22%. I could not have fathomed the cost of funds being as low as they are now!

Can’t see the pic but I’ll take a 6.48% NIM and run with it. That would be nice.

Got a call from a bank that I sell some participation’s to yesterday. They are needing to place some of their liquidity and they were asking for institutional money market rates. 25 bps. That’s it. Crazy crazy times

[Burnadell]

Can’t see the pic but I’ll take a 6.48% NIM and run with it. That would be nice.

Got a call from a bank that I sell some participation’s to yesterday. They are needing to place some of their liquidity and they were asking for institutional money market rates. 25 bps. That’s it. Crazy crazy times

Yep, crazy times! Were you in banking when we had to pay 9-10% on CD’s?

Is David Seim still around? We were in SWGSBIE together when he was at Plains National, I think.

[RdRdrFan]

Yep, crazy times! Were you in banking when we had to pay 9-10% on CD’s?

Is David Seim still around? We were in SWGSBIE together when he was at Plains National, I think.

David was my mentor for my entire career and I had the pleasure of working with him for over half of my career spanning two different banks.

Sadly, David passed away in December of 2018. It is believed that he had a heart attack as he didn’t have any known health problems and died at home in his chair one evening. He was truly a great man and is missed by all who knew him.

[Burnadell]

Aw man, I hate to hear that David has passed. We were not really friends, more acquaintances, but I considered him in my network back in the days if I ever needed any assistance in Lubbock.

[JTCowpoke]

TeamAmerica I have a question for you.

My company (an LLC) has 9 employees and I, myself get paid a salary and receive a W2. My W2 wages are around 90K (well below the 100K listed in the first couple posts). Any profit the llc makes gets put on my personal income tax but not on my W2. Do you think my w2 wages would be considered in the stimulus loan?

My personal CPA is trying to get caught up on the details of this stimulus package. I just would like your opinion on the matter.

Thank you for taking the time to post information on this.

[TeamAmerica]

TeamAmerica I have a question for you.

My company (an LLC) has 9 employees and I, myself get paid a salary and receive a W2. My W2 wages are around 90K (well below the 100K listed in the first couple posts). Any profit the llc makes gets put on my personal income tax but not on my W2. Do you think my w2 wages would be considered in the stimulus loan?

My personal CPA is trying to get caught up on the details of this stimulus package. I just would like your opinion on the matter.

Thank you for taking the time to post information on this.

Yes if you are a w2 employee those wages should qualify for the payroll portion.

[texasdeerhunter]

RdRdrFan, you with Happy State Bank or maybe First Convenience??

Houston Hunter, I am curious how your non-interest income is higher than your interest income, that’s impressive. PM me, we know each other but you may not remember, I’ll explain in the PM

[jnd1959]

Teamamerica, can you tell us where you are getting the latest information on this?

TeamAmerica and jnd1959, are you guys CPAs?

I'm a CPA in public practice, quasi retired...or just tired.

[jnd1959]

The SBA appears to have turned off online filing. Now you download PDFs and complete, sign and upload. You'll need a personal financial statement for any individual owners, GPs or managing members. You'll need most recent tax returns and form 4506 for wll owners and the company. All these are downloaded from the website.

[TeamAmerica]

Here is the online application. I would find a preferred lender for SBA programs and get them to walk you through it. I'm sure the website will be busy but appears open for business for now.

https://covid19relief.sba.gov/#/

https://www.sba.gov/funding-programs/loans/lender-match