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 (41-50)
That isn't really my area of expertise.I do financial planning and tax advice plus RRSP's & TFSA,kids education plans and other types of investing
They're been provisions in the new CARES act that allow sole proprietors to get the loan forgiveness. I would go through your local bank and make the application and discuss with your banker.
The SBA loan program was created to keep employees on payroll who might otherwise be laid off due to the crashed economy. If you’re a sole proprietor I don’t know if you’ll qualify, though it can’t hurt to apply. I order to have the loan forgiven, you have to keep all employees on payroll for eight weeks after receiving the loan, and be able to prove you spent the loan proceeds on them. If the loan is forgiven, you will have to claim it as income on your 2020 tax return.
My understanding of the SBA loan forgiveness program is that your income reported on a schedule C is what you would use for income numbers - it does not have to be W2 income. I hope that helps. If that wasn’t the info you were looking for or you have any additional questions, please feel free to reach out to me.
There was a link on the tn.gov website that gave specifically on 1099 self employee filings for the ppp loans. I am unsure if that is still available due to applications are no longer being accepted at this time. That being said, it would not hurt to do some research and see if there was a way to complete an application. Also, I would recommend speaking with your personal bank, they may be able to help as well
A family member of mine received a prompt response from bluevine.com for his business.
Only the federal PPP loan isn’t forgivable if you receive that funding. If you did you must show 75% went to payroll and 25% went to rent to have it forgiven according to the Cares Act.
I would be happy to answer this question, but it is far too long an answer to write out. I just did this for myself so I am very familiar with how it works.
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Lauren Kneisley
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Depending on who you bank with there are options for loan deferrals and or debt consolidations. You should make an apt with a financial advisor at your primary financial institution. Credit counseling reports negatively on your credit report so if youcan avoid that I would