If you are self-employed, and you have no employees, you are about to lose an incredible opportunity.
I, like many, was not a big fan of the Paycheck Protection Program (“PPP”), a stimulus program designed to fund payroll and rent for 8 weeks during the COVID pandemic. It didn’t seem to apply to many home-based businesses that did not have payroll and rent. And for businesses with payroll, qualifying for loan forgiveness seemed too complicated.
Recent developments, however, have made PPP extraordinarily attractive to self-employed individuals with no employees, and qualifying for forgiveness of the entire loan amount is very easy.
If your Schedule C (or F) shows a profit for 2019, you likely qualify for a PPP loan of roughly 20% of that profit amount. And qualifying for loan forgiveness seems almost certain.
But the PPP expires August 8, 2020, and many banks are not accepting applications after July 31. Call your bank ASAP to see if they can process your application. If they can’t, I can direct you to a few lenders that are still active. Opportunity’s knocking. Don't be too busy to answer
If your Schedule C (or F) does not show a profit, or just shows a small profit, look into EIDL. When you apply for a loan under the Economic Injury Disaster Loan program, you will receive an advance of funds while the loan application is pending. The advance is $1,000 per employee/owner, up to $10,000, and the advance does not have to be repaid, even if your loan application is not approved. You can apply for EIDL through December 20.
