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The new COVID relief package promised to make PPP loan forgiveness easier. Will the ETRAN PPP Loan Validation API return a response for SBA or EIDL loan numbers that were issued via other lenders? If you’re like most small business owners, you’re still struggling with cash flow as stay-at-home orders stretch on and on. First-draw PPP loan borrowers that want to use the new gross income calculations rules will now use SBA Form 2483-C. Important: do NOT include dashes or hyphens when entering your loan number. As of last week, over 400,000 PPP loans have been approved in the first 2 weeks of the 2021 PPP program. The SBA released a new PPP 1 loan application form for the Schedule C filers where if you file a Schedule C and now you can use your 2019 Schedule C or your 2020 Schedule C and you have not received a PPP 1, you can apply for the PPP loan with the new formula. 12. When you apply for a PPP loan with Funding Circle, you will not be required to submit Form 2483-C. Are employees of foreign affiliates included for purposes of determining whether a PPP borrower has more than 500 employees? The Small Business Administration announced on Thursday, April 16th all federal funds set aside for the Paycheck Protection Plan (PPP) Loans have been allocated to those business owners who were persistent (and fortunate) enough to get through the application process and receive an official registration number from the SBA via its bank. We have been and will continue to post tons of information on the actions you and your small business can take to weather the COVID-19 storm. But like all programs, this change has good and bad elements. Reasons Why You Might Still Be Waiting on PPP Loan. Sheer volume is the biggest reason. Though we just got word about the Senate approval of an additional $350 billion dollars in PPP Loan funding, the primary questions we are now being asked are about the calculation and amount of Forgiveness once loans are granted. PPP loans are forgiven as long as you maintain headcount or rehire your employees by June 30th, 2020, partially maintain wage levels, and use the loan proceeds on approved expenses. It requires less … What if You Don’t Have a Business Checking Account When You Apply for the PPP Loan? Existing PPP loan information: If you have an existing PPP loan, you must enter your SBA loan number and the original loan amount when you apply. If you’re a sole proprietor (1099) and are interested in beginning your application process, start here. There are three things to understand from the outset. Depending on your SBA-approved lender, you may need to submit this form and additional documents. The PPP always required business owners to certify that the “economic uncertainty” caused by the pandemic means a PPP loan is necessary to their survival. The initial $349 billion that the SBA put into the program quickly ran out, so some businesses may have been rejected for PPP loan funds for that reason. PPP First Draw SBA Loan Number: Look at the paperwork you received when you received your PPP loan in 2020 to get your loan number. Loans made after June 5, 2020, have a 1% interest rate and a five-year maturity rate. Funding Circle : If you apply for a PPP loan through Funding Circle, you can contact your Funding Circle Account Manager to inquire about the status of your loan. Any borrower that repaid a PPP loan in full by May 18, 2020, will be deemed by the SBA to have made the required certification concerning the necessity of the loan request in good faith. April 10, 2020. If you find your PPP loan application rejected, you may be wondering what business financing options you have left.. We’re building our online version of this form and expect to begin rolling it out to eligible borrowers starting mid-November. The time it takes to complete and get approval for your PPP loan application varies by lender. Now, you can base your PPP calculations on Line 7 (or, if you have employees, a slightly more complex calculation noted below). Remember, approved expenses include payroll costs, mortgage interest, rent payments, and utility costs over the eight-week period after the loan is made. Celtic Bank : On its PPP application, Celtic Bank provides a contact number that can be used when applicants have questions about PPP loans. 13. To calculate your loan amount, find line 31 on your 1040, your net income from freelancing. Many family child care providers are having trouble applying for the Paycheck Protection Program (PPP) forgivable loan program. For PPP loans distributed in 2020, any rehiring must have been done before December 31, 2020. If you've applied and are still waiting — or if you've already heard back and your not approved — here's a helpful post on what you can do. How do I check my SBA PPP loan status? I received ppp loan as one owner and no employee in 6/24/20 and also working with a group home and due to my age and covid19 I have to file for unemployment in May and did not received until September 1st, so does it have to have anything to do with the ppp, do you think I should return the ppp … The question is: Did it deliver? Related: You Now Have an Extra Week to Return Your PPP Loan Key Concepts for the Self-Employed Being an independent contractor means you are a small-business owner or sole proprietor. Checking more than one box does not mean you have to spend money on any one box. What Is The PPP Loan Funding Timeline? Call 1-800-659-2955 (the SBA Disaster Assistance customer service center) about the application process, the status of your loan , or with any other questions you may have. This is a major change because gross income means all the money you’ve earned before taking tax deductions. You can fill out the Payroll Protection Program application through Kabbage right here As always, we are invested in your success! The SBA is revising the formula used to calculate your maximum PPP loan amount. This will protect you in case you make a mistake in claiming payroll expenses. (Loans made prior to that date have a two-year maturity rate.) Under the new rules, the covered period is 24 weeks instead of the original eight-week time period. As mentioned during our last update, the SBA and US Treasury released a new, simpler forgiveness application Form 3508S for PPP borrowers who have loans of up to $50,000. The answer seems to be yes. 7. There are now two calculations depending on if you have payroll. This means funds have been reserved for you. PPP loan applicants who have been approved and have received a PLP number, but have not provided the required loan documentation, will not receive a PPP loan. Unfortunately, if you were in the red last year and this number is negative, you won't qualify for a PPP loan. If this number is more than $100,000, reduce it to $100,000, which is the cap. The news that some borrowers are getting paid more than once is galling, but not surprising, to small business owners who have been waiting months for their own PPP loan. eight numbers followed by a dash and then two more numbers). How sole proprietor PPP loans are calculated. Previously, sole proprietors were able to apply for a PPP loan using their 2019 or 2020 net income as reported on a Schedule C. But changes were made on March 3, 2021 that affected the PPP loan calculation process. Update (1/11/21): As of January 11, 2021, PPP applications are open again. If you have an unresolved issue on your first draw PPP loan, move quickly to identify the additional documents requested and supply them to your lender. However, they said in their FAQs, lenders must have “executed” SBA Form 2484 (the Lender Application Form - Paycheck Protection Program Lender Guarantee) to issue PPP loans and receive a loan number for each originated PPP loan. Approved loan applications which have not included all required documentation within 20 calendar days of approval, are not eligible for funding and will be cancelled. PPP loans are forgivable: as long as you meet all forgiveness requirements listed below, the loan effectively becomes a non-taxable grant. "We have been informed that the $350B in initial funds for the Paycheck Protection Program (PPP) have been exhausted. Once an SBA loan number is issued, the PPP loan must still go through the lender’s final underwriting process. For more information on PPP loans generally go here . For a second draw PPP loan, you must enter the SBA loan number of your First Draw PPP loan (the first PPP loan you obtained) when you apply. You can find your SBA loan number near the top of your existing PPP loan promissory note. Tax ID number (TIN): You Have Your PPP Loan, Now What? Posted by Denver Todd, CPA, Senior Manager, Tax Services on Apr 13, 2020 This article was co-authored by Collin Kanelakos, Partner, Assurance Services . On January 19th, the SBA released a simplified version of the loan forgiveness application for loans of $150k or less. This page is about PPP loans for 1099 independent contractors. As of now, any rehiring must … Many banks are telling them they must had a business checking account before February 15, 2020. If you did not apply for a second draw loan but have hold code(s) on your 2020 first draw application, your lender must resolve the hold code(s) during the forgiveness process. 8. Previously, you had to use net income from Line 31 on your Schedule C. However, gross income from Line 7 will now be used to calculate PPP loan amounts. Paycheck Protection Program (PPP) loans have been a welcome relief for small businesses across the country, and Frost was proud to do everything we could to help secure approximately $3.3 billion in loan approvals for more than 19,000 Texas businesses. Your application has been accepted by the SBA and a PLP reservation number has been issued. 14. Once approved, the SBA requires lenders to disburse funds within 10 calendar days.Your loan is considered approved once the SBA assigns you a loan number. Update March 29, 2021: Small-business owners now have until May 31, 2021, to apply for a first- or second-draw loan through the Paycheck Protection Program. For PPP loans distributed in 2021, the SBA has not released any information on a potential grace period for rehiring employees. This meant that If you made $50,000 and had $55,000 in expenses, your Line 31 would be negative, and you could not get a PPP. 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