This video provides an overview of the Paycheck Protection Program (PPP) and its revision made on March 3, 2021 by the SBA. I answer the following questions:
1. What is PPP and what is it designed to do?
2. How does the PPP work?
3. Who qualifies for PPP?
4. Where do you apply for the PPP?
5. What is the difference between 1st draw and 2nd draw PPP loans?
6. How to apply as a sole proprietor, independent contractor or self-employed individual?
7. How to apply as an S Corp or C Corp?
8. How much can you receive in PPP funds?
9. What can you do with the funds once you receive them?
10.How PPP and Unemployment CAN work together?
11.When does the program expire?
Please note that for 2nd draw loans which have a 25% reduction in revenue requirement to qualify, you can:
(1) Compare gross receipts in any quarter of 2020 and compare it to that same quarter in 2019 OR;
(2) Compare 2019 gross receipts with 2020 gross receipts as reported on a completed tax return.
Links:
Link to SBA Application for PPP First Draw Application Form for Schedule C Filers Using Gross Income: https://www.sba.gov/document/sba-form-2483-c-ppp-first-draw-borrower-application-form-schedule-c-filers-using-gross-income
Link to First Draw PPP Loan SBA Webpage: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program/first-draw-ppp-loans
Link to IRS Form Schedule C for 2020: https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
Take what you learn from this video and ask your legal or tax professional all of your specific questions. If you want to contact me, my information is below.
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