PPP LOAN FORGIVENESS As a self-employed and sole proprietor individual.
As a self-employed and sole proprietor individual, I get paid on a 1099, all income I receive I consider as payroll since it's just me. THE BANK THAT ARRPOVED THE PPP FOR ME ALSO USED THE 1099, NOT SCHEDULE C, I applied for the PPP was approved and received the loan. Now how does one go about applying for loan forgiveness taking this into consideration?
Do I take weekly payments into a personal account from the business, meaning divide the amount I recived by 8 weeks? I have asked the lending bank but they have no information on how to proceed with this matter as of yet.
Any insight into this matter will be greatly appreciated. So that I can properly use the funds and Apply for the loan forgiveness.
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Answers (31-40)
I would first contact your local bank that is providing the PPP money and talk to them. They really are the best to help with this
Hello Jo,
Please visit our website: www.meetolio.com. Since I am not a CFP, I am prohibited by compliance regulations from giving advise or guidance. Please feel free to submit your question to an advisor through the Contact tab on the website. We also offer complimentary introductory calls with our advisors.
Be well,
Beth
Thank you...
As I am not, nor do I play a CPA on T.V. , I would suggest that you "QUICKLY" contact your CPA on this... I do know that you need to complete a Sch. "C". To submit application.
Strongly suggest you contact either Veronica Dias or Mike Higgins (see prior posts) about this. I also understand they may be closing program again soon?
Larry
I believe stimulus checks for 1099 was enabled after the program started & sole proprietors or gig workers were included after the fact.
To my understanding, PPP is a program for loans up to $2M to support employees of small business. As long as 75% is used to cover payroll the loans convert to grants.
There is newfound concern being published nationally of widespread fraud, which I further suspect will be investigated aggressively post fact.
I have noticed on LinkedIn a former colleague of mine publishing a note which suggested he was able to secure a PPP loan for his company. He is a sole proprietor in the Benefits space. His company is fairly new as well.
I just do not find this to be the intended purpose of the PPP program. At the margin I would be very concerned about taking PPP proceeds in such a circumstance. If you have alternative access to Capital I would pursue those alternatives.
You should speak with your tax advisor to see what might be a good approach. I would research credit counseling services. Not to sign up with them but to get their strategy for approaching creditors. If you have a good relationship with your banker that person could give you some insight. You can get your annual credit report and review it before approaching your creditors. You want to make sure you are looking at the same information they are so your story is accurate. I can't give tax or legal advice. Consult your own rersources.
First of all, is this a Covid-19 issue? If so, it depends on the type of loan, and your lender. Student loans, mortgages, HELOCs and business loans are all in a separate categories.
I would consult with a tax expert, a CPA, for that specific question.
Work with you bank officials and provide them with your Schedule C which delineates your business income. The PPP application form will walk you thru the process.
SBA continue to update the guidelines. Google SBA PPP loans for ongoing updates.
Hello;
Thanks for this interesting question. I do not have your contact info. To provide an accurate answer to it, I must ask you a few questions to verify what do you mean by "loan forgiveness" and whay kind of loan it is?. So please call me in confidence on my cell xxx.xxx.xxxx
That sounds like a question for a CPA!