If I only submit one application, how do I know if I have been approved? Did you receive a 1099 in 2019 or 2020? You are entitled to the PPP! The SBA released a major change to the PPP program in early March that affects gig workers and the self-employed. Not only does it make PPP loans more accessible, but this rule also allows for larger loan applications for smaller businesses. From January 2021, the PPP will be fully operational. The SBA accepts Applications for First Draw loans for each eligible company that has not yet received a PPP loan and for Second Draw loans for any eligible company that has issued its first loan. PPP loans cover labour costs (including benefits) for individual salaries up to a maximum of $100,000. Entrepreneurs and the self-employed can essentially use a PPP loan to fund their wages (including wages, commissions, and tips) with a loan equal to 2.5 times their average monthly net profit, up to a maximum of $100,000 on an annualized basis. As part of a larger aid package, Congress approved $284.5 billion in new funding for the paycheck protection program. The types of businesses and industries eligible for PPP loans have been expanded under the new bill. In addition, businesses that can demonstrate a reduction in gross revenues of at least 25% compared to the previous year and meet other requirements may be eligible for a second PPP loan. You may be eligible for one of the new PPP loans. I have updated this article with the latest information.
I got approval for ppp loans, but I only asked for the amount to cover my employees` paychecks. As a sole proprietor filing Schedule C of Section 1040, can I apply for a separate PPP loan for myself? I know you can only use the tax number once, can I use my SSN to apply? Thank you very much! If you started earning income before June 30, 2019, divide your total income by 12 if you received income in January 2019, 11 if you received income in February 2019, and so on. If you didn`t start receiving independent entrepreneur income until after June 30, 2019, you can divide your income by 2 from January to February 2020. Seasonal businesses can use the period from February 15, 2019 to June 30, 2019 OR from March 1, 2019 to June 30, 2019. Legal company name/DBA or business name, if applicable: This must be the same business name used in your PPP application and must match your tax returns. Specify a database administrator if what appears on the supporting documents differs from your legal name. If I have a Schedule C but I don`t have a gross margin and I`m self-employed, won`t I be eligible for the loan? Why is this PPP loan for the self-employed so difficult? Sole proprietors, independent contractors and the self-employed can now use their entire gross income to calculate the amount of their PPP loan. Previously, you had to prove a loan based on profit or net loss – many borrowers in this group were excluded due to limited or negative numbers, or the loan amount calculated based on expenses was so small that it wasn`t worth applying. In an effort to clarify the SBA loan application process for self-employed small business owners (filing a Form 1040 Appendix C), the SBA has published an update to the preliminary final rule. I am not aware of any requirement that the company must have a business license.
In addition, you must prove that you were in business by February 15, 2020 to be eligible. The pay before and after that date seems reasonable to me. I am somewhat astounded that your application was rejected for these reasons. You can definitely try contacting your lender to see if they will work with you. Another option is to apply via Nav, and we`ll put you in touch with lenders who will hopefully be more flexible in their approach. I can`t promise approval, of course, but our lending partners have helped borrowers who have struggled to get approval from a major bank. I`m sorry about how the comments dashboard works, I don`t see what you`re responding to. All the guidelines mention 1099-MISC, but I don`t see where this should be a difference since 1099 NEC as it reports the income of independent contractors. For all PPP remittance forms, you must provide the following information about your business and loan: Hello! I own a small consulting company without employees.
My main client lost funding last year and can`t pay me right now. They want to keep me, but don`t know when their funding will be restored (if so). Can I get a PPP loan to cover the loss of income in % ? I won`t have $0, but I can`t cover my expenses. I`m on the lookout, but there isn`t much work in my area at the moment. I would like to join in all the thanks for this article and these useful comments. I am in the same boat as Ryan, who announced yesterday that he had received a $1,000 EIDL that had been requested a long time ago and was obtained the day after the PPP loan was financed. I have read elsewhere that it is acceptable to have funds from both when they are used for different things, which means that the PPP money replaces my Schedule C net profit for 8 weeks, but the EIDL money is used to pay my mortgage/home office utilities for a few months. Perhaps this distinction only applies to EIDL loan funds beyond the grant? Or if I can document that I used (part of) the EIDL subsidy to pay non-salary costs, does this prevent (part of it) from being deducted from the PPP rebate amount? If so, how many months of these expenses are allowed? The same 2 months as ppp? The rest of 2020? I understand if no one yet has the answers to such specific situations, but I thought it couldn`t hurt to ask. Thank you very much! The IFR says: “This provision prohibits an entity that has gone bankrupt and does not intend to recover a PPP loan.
