The SBA will be opening up the PPP funding to all lenders on Tuesday, January 19th.
Contact your bank to find out if they are participating in the PPP funding.
Find out what their application process is.
Gather the documentation necessary to apply for the loan.
Calculate your average monthly payroll costs.
What's the latest on EIDL Grants and Loans?
EIDL grants/loan application process appears to be delayed until mid-February.
The SBA is not accepting new applicants at this time.
If you already received an EIDL grant that is less than the $10K maximum, SBA will reach out to you via email. It appears as though you may receive the difference between the original amount you received and the full $10K amount.
If you submitted a grant application and did not receive anything because money ran out, your application will be considered next “in line”. The SBA will reach out to you via email.
Can you apply for a second loan due to COVID?
It is hard to say with 100% certainty, but based on the article below, it appears as though the answer is “no”.
If you suffered from another disaster, you could apply for a loan associated with that other disaster.
If your first EIDL loan was not for the maximum amount you can ask to have the amount increased.
I am self-employed and have no employees, how do I calculate my maximum First Draw PPP Loan amount?
PPP Loan – For a sole proprietor
Here is how to calculate your PPP loan amount as a sole proprietor.
Question: I am self-employed and have no employees, how do I calculate my maximum First Draw PPP Loan amount? (Note that PPP loan forgiveness amounts will depend, in part, on the total amount spent by the borrower during the covered period following disbursement of the PPP loan.)
Answer: The following methodology should be used to calculate the maximum amount that can be borrowed if you are self-employed and have no employees, and your principal place of residence is in the United States, including if you are an independent contractor or operate a sole proprietorship (but not if you are a partner in a partnership):
Step 1: Find your 2019 IRS Form 1040 Schedule C line 31 net profit amount.3 If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.
Step 2: Calculate the average monthly net profit amount (divide the amount from Step 1 by 12).
Step 3: Multiply the average monthly net profit amount from Step 2 by 2.5.
Can/Should I use 2019 or 2020 Payroll Costs when calculating my PPP loan?
You can use either your 2019 or 2020 payroll costs to calculate your loan.
How does the Employee Retention Tax Credit (ERTC) affect the PPP?
Employee Retention Tax Credit (ERTC)
Please check with your financial expert to see how to best use the ERTC.
Note from Rich Largman: My understanding is that you should hold off on forgiveness of the first loan until you understand how forgiveness will impact the ERTC.
Which application do I use?
If you did not receive a PPP loan yet, use the first draw application form below: