I want to share some important information with you that can financially help you and your business. It is called the Paycheck Protection Program or PPP, and it comes under the Cares Act. It helps companies and independent contractors who have had difficulty because of the Corona virus and shut down that we experienced.
If you were in business before February 15th of 2020, and you had at least a gross income of $5,000 in either of those years, you can apply. I personally applied back in April of 2020. I was approved and I did receive a check directly to my business account. The calculation, however has changed, and it's now easier and you can qualify for more money to easily calculate what you might receive.
Just take either your 2019 tax return or your 2020, whichever is greater. Look at line seven on your schedule C. Take that amount, divide by 12, and then take that answer and multiply it by 2.5. And that will give you a great estimate of what you could qualify for. So for instance, if you made $60,000 in 2019, divide that number by 12, that would be $5,000. Then multiply that number by 2.5 and that's $12,500. That's the size of a 'forgivable loan' you could qualify for.
What does forgivable loan mean? Exactly that! It's forgiven. So you will not have to pay it back if you're like me and you're already successfully made a draw from this act, there was a second round and you could apply for a second grant. The only deal now is you have to demonstrate that you made 25% less in any quarter of 2020 when you compare it to 2019.
So you might want to know some things. Where do you get information? How do you apply?
Even though the deadline isn't until May 31st, they estimate only about three more weeks left of money is available. And when the money runs out, there may not be any more after that. So go to NotaryPPP.com to get more information and apply for this important program.
Also, here's another important fact. It's not taxable income. It's a tax-free grant.
Also Bill Soroka and I had a one hour zoom call with Renea Dentman and Leslie Dawson this last Saturday. We went over all the exact details on how it works and how you qualify and what steps you need to take.
It's now posted on YouTube - Click here
They also made themselves available for any questions or any phone calls to help you apply and get through this.
They're working with A10 Capitol, which is a midsize bank institution, and they are working through in about seven to 10 days. So they're working through this pretty quickly. You can reach Renea for any of your questions at [email protected].
It doesn't hurt to find out if you qualify. And if you do, how much you may receive to help you and your business.
Until the next time.