[Fredslist] PAYROLL PROTECTION PROGRAM (PPP) LIKELY TO EXTEND TO MAY 31

[Lynda Feld]

Hello Gotham:

 

This info might be of interest to sole proprietors and/or small business owners in light of the fact that the government still has an excess of $100B  available for this program.  You might contact your banker, accountant, attorney/business advisor for more details. But thought I’d pass along some basic information.

 

 

This is a very basic overview and is not intended to be comprehensive. 

 

All sorts of small and not very small businesses are eligible. (Schedule C filers actually have a better rate calculation than others).  In very rough terms, businesses like yours, assuming it’s not structured drastically different than a few years back, can “borrow” approx. 20% of their Gross Receipts for 2019. (Max of 100k gross receipts per owner. More if business has employees).

 

So a sole proprietor grosses 50k on their 2019, pre pandemic Schedule C, they can get approx $10,000. This does not have to be paid back if handled properly (which is easy for a Sch C with no employees.)

 

This is also not taxable. Great small business stimulus plan. 

 

There is even a second draw available for businesses that experienced a 25% loss of revenue in just one quarter of 2020 compared to the same quarter of 2019. Even if they made up those losses later. 

 

There are added bells and whistles that are helpful in some situations but this is the gist of it. 

 

Program set to expire March 31 and some banks have stopped taking applications. But the house nearly unanimously passed extension to May 31 with an additional month for processing. Expected to pass the senate. Those who missed our now have another chance. It’s even possible to get a first loan and then the second loan if one acts quickly given the extended time. 

 

Lynda Feld

 

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://gothamnetworking.com/pipermail/fredslist_gothamnetworking.com/attachments/20210319/f822c2cf/attachment.html>