Today with 7 days left in the 14day PPP window that they will use Line 7 of your Sch. C. The U.S. Small Business Administration (SBA) has released a new Paycheck Protection Program (PPP) Borrower Application Form for Schedule C Filers Using Gross Income. The new application released on March 3 reflects the updated interim final rule (IFR) released the same day, which allows individuals who file an IRS Form 1040, Schedule C to calculate their maximum loan amount using gross income. Additionally, the IFR implements other recent changes to the PPP announced by the Biden administration last week.
“Previously, PPP rules defined payroll costs for individuals who file an IRS Form 1040, Schedule C as payroll costs (if employees exist) plus net profits, which is net earnings from self-employment,” the IFR states. “SBA is aware of significant concerns with this definition, because it does not take into account fixed and other business expenses that a small business must cover to stay in operation and therefore keep the owner employed. Thus, the support for employment for sole proprietors includes covering business expenses as well as net profits.”
The President released a fact sheet on increasing lending to small businesses in need and changes to the PPP to further promote equitable access to relief. The fact sheet announces five changes to the PPP:
1. Open the PPP to Small businesses that have less than 20 workers.
2. Focus on Women & Minority business along with sole proprietors. And change the calculation of PPP to give more money to them.
a. Will use gross income not net income (Net income is after expenses)
b. Will use 2019 Sch C. ( Draft or filed version)
3. Remove the look back period for non-fraud felons to get PPP.
4. Remove the restriction barring PPP applicants with delinquent federal student loans from obtaining PPP.
5. Give access for non-citizen small business owners. Allow ITIN holders, Green card holders and people here on visa that have small business to have access to PPP.
In this 14-day period, starting Wednesday, Feb. 24, during which only businesses listed above can apply for PPP funding. The 14-day exclusive application period will allow lenders to focus on serving these small businesses only.
YOU CAN USE YOUR 2019 TAXES TO APPLY. YOU DO NOT HAVE TO FILE 2020.
HOW TO APPLY:
Please contact your BANK. If they do not offer the PPP under this new program, or if they require you to open a bank account with them, we have partnered with a lender:
KEVIN L. WOODLEY
Water Street Capital Partners.
They will need the following to start the process:
• YOUR COMPANY EIN.
• YOUR SS#
• COMPANY NAME
• AND YOUR EMAIL ADDRESS
They have a secure portal and an online tool to track your PPP.
Tell them TAXKO sent you and his team will treat you like family.
Good luck to all.