PPP Loans Self-Employed Version

Alright! Alot of us are already familiar with the PPP Loan that is available to businesses with payroll but how bout the crowd of us that are self-employed? Good news is you're also eligible. If your business was new, then you need to make sure you were open for business on Feb. 15th 2020 latest. Regretfully the loan is ineligible if you were open for business after that date,

Please check with your local bank for application details, if none check with online vendors like Kabbage.

What you'll need:

If you have no employees:

1. You'll need your Schedule C from your personal tax return for 2019 (If you started business in 2020, then you'll need a reviewed copy of your 2020 return if not final.)

2. Check Line 31 from your Sch. C net profit amount. If the amount is over $100,000 then just reduce it to $100,000. If the number is zero or less, then unfortunately you're not eligible.

3. Calculate the average monthly net profit. (Step 2 divided by 12.)

4. Multiply the average monthly net profit amount by 2.5 (from Step 3 above)

If you have employees:

1. Complete 2019 by adding, all of the following

• Use your Schedule C from your 2019 Tax return and check line 31. for your net profit

• Use your Schedule C from your 2019 Tax return and check line 31. for your net profit amount. If the amount is over $100,000 then reduce it down to $100,000. If the amount is zero or less, then just use 0.

• The total of your 2019 Gross Wages and Tips paid to your employees. If any employees made an annualized amount of more than $100,000 then reduce it down to $100,000.

• 2019 Employer Health Insurance Contributions. (See Sch. C line 14) retirement contributions (Sch C Line 19) and any state and local taxes assessed on employee compensation

2. Calculate the average monthly net profit amount (Step 1 above divided by 12.)

3. Multiply the average monthly net profit amount from Step 2. above by 2.5.

It is our interpretation that you will need to provide your Sch. C form, any Form 941's and State quarterly wage unemployment insurance tax reporting forms for each quarter, along with evidence of any retirement and health insurance contributions, if applicable.

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