Are you a self-employed individual and a Schedule C filer? Have you received your PPP funds yet?
If you have not received your PPP funds, or if you need to increase your original amount, then listen up!
The Paychex Protection Program (PPP) is now allowing those who are self-employed & Schedule C filers to obtain Paycheck Protection funds using their 2019 or 2020 Gross Income, not Net Income.
The new Borrower Application SBA Form 2483-C is titled “Paycheck Protection Program Borrower Application Form for Schedule C Filers Using Gross Income March 3,2021” – see link below.
The calculation is easy, just take your gross income from 2019 or 2020 IRS Form 1040, Schedule C Line 7 (capped at $100,000), divide that by 12 (capped at $8,333.33), then multiply by 2.5 (plus EIDL). That will equal the Loan Amount (capped at $20,833.33).
If you have not already requested PPP funds, we suggest that you contact your banker and tax professional to discuss your eligibility as soon as possible!
In order to reach the smallest businesses, SBA will offer PPP loans to businesses with 20 or less employees, and sole proprietors, only from Wednesday, February 24, 2021, through Wednesday, March 10, 2021.
It's Time to Assess Your Team
Now may be a good time to assess your professional team that surrounds you. Have they told you about the Paycheck Protection Program? Are they willing to jump in the trenches and help you until you get the money needed to survive? This could be your banker, tax professional, business advisor, attorney, etc. You finally NEED them and they NEED to step up.
If you have any questions, or need assistance, please give us a call at 248-934-0550 or contact us below.
We’d be glad to help!
Please keep in mind that we are in the midst of tax season and are extremly busy. While we are advocating for you to benefit from any program you qualify for, we suggest that you first discuss this program with your banker as they should be the experts in this department.