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Around the Wash Where’s The Money<br />
to get some assistance based on the numbers<br />
that we show as profit. Is this true?<br />
The help you can receive depends on the program<br />
that you are applying for. For EIDL loans<br />
(applied for directly on the Small Business Administration<br />
<strong>web</strong>site) they are revenue based. For<br />
PPP loans to sole proprietors and LLCs that file<br />
taxes on Schedule C they are profit based. You<br />
stated you were a partnership, so your 1065 and<br />
K-1s would drive your eligibility. The 1065 would<br />
document formal payroll and the K-1s would<br />
document owner draws or distributions. The last<br />
day to apply for a PPP loan is August 8th, so see<br />
your banker right away.<br />
Q<br />
Understanding the self serve business,<br />
here we are with all of the overhead<br />
of a small business without the<br />
payroll. Are there any benefits available<br />
for the self serve car wash owners who have<br />
been affected by COVID-19? Utilities, mortgage<br />
payments and equipment loans are the<br />
same as any other business with payroll…so,<br />
what is available and how do we apply?<br />
The time to take cookies is when cookies are<br />
being passed around. That was the advice that I<br />
gave Heartland Carwash Association members<br />
back on April 4, 2020, when I laid out all the<br />
programs available to help self-serve car wash<br />
owners. Now, four months later, many of the programs<br />
are closed or out of money. You have until<br />
Aug 8, 202,0 to get a PPP loan, get to your banker<br />
ASAP for details. Otherwise the Employee<br />
Retention Credit and the Employer Tax Deferral<br />
programs will still be available to you.<br />
Q<br />
I recently got this email: “You are<br />
receiving this message as a notification<br />
that your Economic Injury<br />
Disaster Loan (EIDL) application is<br />
currently being processed in the order it was<br />
received. You will receive an email notification<br />
when there is a change to your application<br />
status” and then I found $1000 in my account.<br />
It doesn’t say anything about it being an advance.<br />
Should I assume that’s what it is?<br />
Yes, EIDL Advances were deposited without<br />
notice or explanation. Be happy that you got the<br />
advance, as that program quickly ran out of funds<br />
and has not been refunded leaving the SBA owing<br />
advances to many businesses and no additional<br />
funds look to be forthcoming.<br />
The Paycheck Protection Plan loan<br />
includes the self employed, so long<br />
as you have paid taxes as a self<br />
employed business owner. Therefore,<br />
you should be good for 2.5 times the<br />
monthly “payroll” as I understand this so far.<br />
Is this true?<br />
Q<br />
Yes, depending on the tax form being filed and a<br />
few other details.<br />
Q<br />
1. What is the preferred SBA loan<br />
program that a buyer of a self serve<br />
car wash could use? Would that be<br />
an SBA 7a loan of some type?<br />
2. What minimum qualifying factors, and ratios,<br />
does a buyer (and seller) of a self serve<br />
car wash need to meet for loan funding<br />
when the sale of the car wash also includes<br />
real estate?<br />
3. What credit history or credit score does<br />
the buyer need to have?<br />
4. With real estate included, is the down<br />
payment requirement 10%?<br />
5. How long is the process of funding if the<br />
buyer is qualified and the seller is organized<br />
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