The Paycheck Protection Plan is on the minds of millions of business owners.
Here’s what you need to know now.
- The first draw is for those who missed getting in on the original PPP, which expired on August 8, 2020.
- The deadline to apply is March 31, 2021. Don’t wait. Funds could run out before then.
- PPP is a cash infusion. You don’t have to repay the PPP funds IF you spend the funds on qualified expenses. What makes this extra special is that the government has said that forgiven loan funds are not taxable AND the expenses are still deductible! That’s an EXTRA score!
Who qualifies for first-draw PPP money today?
You, most likely—if you file a business tax return and have not yet received any PPP monies.
You qualify for the PPP if any of the following are true:
- Your business must have been in operation before February 15, 2020.
- You file your taxes on Schedule C of your tax return. Businesses that file on Schedule C include independent contractors (often called 1099 folks), single-member LLCs, proprietorships, and statutory employees such as life insurance salespeople.
- You file your taxes on Schedule F (ranchers and farmers).
- You are a general partner in a partnership, but the partnership asks for and receives the money based on your and the other partners’ combined self-employment incomes, as adjusted.
- You operate as an S corporation.
- You operate as a C corporation.
- You are the only worker in the business—and if you have employees in the business, you qualify on both your ownership worker status and your employees’ W-2 status.
Where to apply?
The SBA has a lender match available here. You can start with the bank where you have your business banking. Payment processors like PayPal and QuickBooks are also assisting with PPP loans.
Here’s what to avoid:
There are several PPP application hustlers on these internet streets guaranteeing a certain amount of approval in exchange for a percentage of the loan amount.
DO NOT DO THIS!!
Several cases have been prosecuted where people have applied for funding with false information. Lying on a federal loan application is a felony, and you will be the one paying the price.
You can watch my latest video about PPP Loans right here; don’t forget to subscribe to my YouTube Channel or follow me on Facebook to get the 411 on the latest tax rules, regulations, and tips to help you Win the Tax Game!
UPCOMING TAX DEADLINES & IMPORTANT DATES
February 12 – IRS opens for individual returns
March 15 – SCorps & Partnerships filing deadlines
April 15 – Filing deadline for individual calendar year CCorps returns
April 15 – Final deadline for SCorps 2021 1st QTR tax payments