Since March 4, there have been changes to the PPP program that are especially helpful for sole proprietors and immigrant business owners. Learn about the details here.
If you have not yet applied for the PPP, take the following steps:
- Are you a sole proprietor with a 2019 or 2020 tax return?
- If you are, FIRST read the information in the link above.
- Carefully read 2nd Round: PPP Loan.
- Answer: Are you a corporation/LLC with a 2019 or 2020 tax return?
- If you do, find out how much you spent on PAYROLL (Check Line # Salaries and Wages). Divide that PAYROLL by 12 and then multiply times 3. The result will be an approximate amount that you will receive. Consider if this amount will be big enough to truly help your business, because if not, it may not make much sense to apply. Note: If you do not report PAYROLL, the SBA will assume that you do not pay yourself with a check every month and instead withdraw from the profit to pay for your life expenses. Therefore, the SBA will calculate the approximate amount you will receive by using your PROFIT or Taxable Income.
- If you are comfortable with the approximate amount you could receive, then check if you have the required documentation.
- Answer: Do you have receipts that prove the money you withdrew from your profit was used to pay for your living expenses?
- If you do, you can use these receipts in lieu of 1099, W2/W3 or 941 forms.
- If you don’t have these receipts, you will probably NOT get the PPP due to lack of documentation.
- Answer: Do you have a form of identification showing your picture?
- Drivers License is the most common accepted form of identification. Passport can also be used.
- Answer: Do you have a voided check?
- You can use a check from a business or personal account.
- If you feel comfortable with the answers to the questions above and have ALL the required documentation, read the instruction on how to apply here: 2nd Round: PPP Loan.
- If after performing ALL the steps above you still need assistance, schedule a zoom call with Karolina Zeledon at https://calendly.com/kzeledon
If you have already applied for the PPP, keep following up on the results of your application.