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Phew, what a crazy few weeks! On top of tax season craziness, and reading the 880 page CARES act, and applying for clients for the EIDL loans and helping getting their books straight for the PPP loans, and homeschooling kiddos, and cooking every meal at home, and missing friends, and April 15th was very anticlimactic since the deadline isn’t until July 15th, 2020, and then my husband crushed his hand at work and had to get an unexpected surgery on Thursday (he’s recovering well!). I say this not for pity, but to say, man, we are all busy and we are all DOING THE BEST WE CAN riding this pandemic rollercoaster of emotions! I have gotten to meet so many of you (over Zoom, of course) over the last few weeks. I am grateful for your trust and to be able to help small business owners during this time. With that said, unfortunately, the PPP loan funds have run out. But I'd bet $100, there will be a round 2 of funding.
Again, even if you’re self-employed and do not have payroll, you qualify for the PPP Loan.
How it works:
Income for 2019: $60,000
Average monthly income: $5,000
Forgivable loan: $5,000 x 2.5 = $12,500 FREE MONEY
I think we could all use free money right now. Unfortunately, from what I see on social media, business owners are STRESSED (rightfully so). They are overwhelmed, they don’t think they qualify, they don’t understand all the legal jargon, and they need to focus their time and attention on how to save their business. I would love to help as many business owners as possible. I’m sure you know a freelancer, an entrepreneur, a creative, a self-employed individual that needs help. Please tell them they probably qualify, please tell them to apply and please send them my way if they have any questions! I’m here. I can help them ease the anxiety of taxes but I’ll also be their guide through all of these CARES Act grants, loans, credits, etc.
Prepare for Wave 2 (Hopefully not of Coronavirus but of the PPP loan funding)
I have learned a lot through this process and I wanted to let you know my observations about application strategies:
1. Early bird gets the worm - apply now even before more funding is approved. Be ready to apply again the minute applications go live for round 2.
2. Community Banks seem to be much more effective and responsive.
3. Online applications via Lendio.com or PayPal seem to be much faster.
My observations on the best strategy:
-Apply via Lendio.com
-Apply via Paypal.com
-Apply via bank you are a customer with
-Apply via 2+ community banks
-Apply at multiple institutions
-Apply now, don’t wait for round two
4. Get your documents ready!
a. Either have your 2019 business tax return or your 2019 Schedule C. As a last resort, you’ll need a draft of one of those.
b. 2020 Profit and Loss statements (if you don’t already use a cloud accounting software, get QuickBooks and start catching up from Jan-April)
c. Bank statements to prove out income
What if you don’t have those things ready? I am happy to chat with you about filing your taxes, setting you up on QuickBooks, catching up your books, and getting all of your documentation ready for you.
In addition, there are a variety of other banks, state governments, local governments, and government agencies offering various types of
Loans
Disaster loans
Grants
Additionally, if you do have payroll and don't want to wait and see if more funds will be available, there is a payroll credit available immediately that can give you a tax credit of up to $5,000/employee. A new IRS form was created last week for this called Form 7200. I’ve taken webinars and read many instructions and instructions to instructions on how to file for this credit and I can’t wait to help you get that money in your pocket. If you know of a business owner keeping people on payroll, send them my way so I can tell them about the $5,000 per employee tax credit they could be eligible for.
Don’t forget: You’re doing great!