ACT FAST: Apply for the PPP Stimulus Check Before it's OVER [PPP Guide & Q&A].

hey everyone me kevin here in this video i'm going to talk about the paycheck protection program we're going to talk about round number one and round number two i'm going to start by introducing the program what it is and then through a bunch of questions and answers i'm going to talk a lot about the program because the odds are if you're confused about the ppp well somebody else probably has been confused before you and has asked a question about it and i've gone through hundreds of questions about the ppp compile them all into the most common questions that my goal is basically to answer every question that exists because a lot of questions are similar and we're going to go through all of that in this video but first i want to just introduce the paycheck protection program so somebody in discord mentioned that hey look they applied for the ppp and they got a 20 000 ppp loan and a lot of people initially hear this a 20 000 loan and they think oh my gosh i don't want a loan i just want the free money and this is unfortunately why the ppp seems so complicated it's probably the biggest stumbling block that we have and the ppp is very different from the eid alone and the eidl grants which now it just complicates things even more so you've got ppp then you've got eidl loans and then you've got eidl grants and we're not going to talk about the eidl stuff here so if you're interested in that you could just type into youtube meet kevin eidl grants and you'll learn about the grants and the loans and so we'll just put that aside for right now but but for here let's talk about the ppp just the paycheck protection program and yes the paycheck protection program gives you a loan but the program is designed to be a grant it's designed to be free money the reason the government decided hey let's call it a loan is because if they grant you money they can't have any strings attached to it so what they said instead is hey let's give people loans that are going to be grants because we're going to forgive the loans but the only way we'll forgive the loans is if people follow certain rules and the rules are super simple to follow basically the government just wants you to say that you are in some form self-employed if you are in some way shape or form self-employed because you work for uber you're a hair stylist you're a realtor you're an independent contractor you're a computer programmer who's a contractor you get a 1099 you got a sign hustle you flip stuff on ebay you're a day trader whatever i don't care what it is you are if you are in some way shape or form self-employed you are eligible to apply or you have a side hustle it doesn't even have to be your primary hustle you are eligible to apply for the paycheck protection program there's a round one and there's a round two everyone who is self-employed can apply for round number one and only those who have lost 25 in income comparing a quarter in 2019 to a quarter in 2022 i'm sorry 2020 can apply for round two so basically everyone watching this right now who is self-employed can apply for round number one everyone who is watching this who is self-employed who has had their income decline in one quarter in 2020 compared to 2019 they can apply for round two but a lot of the answers are the same for round one and two so we're going to go through a lot of those in this but i want to just show you quickly how powerful this is let's say this is very similar to what somebody in discord mentioned this morning let's say you got a twenty thousand dollar ppp loan and the twenty thousand dollar ppp loan came into your bank account and showed up the first thing you wanna know is this money is tax free money it is not going to get taxed that's huge right there on top of that the ppp is going to say that you're going to take this 20k and you're going to pay yourself around 60 to 75 percent in payroll and around 40 to 25 percent for other expenses like business utilities business rent business contracts there are a whole host of eligible expenses and those expenses will be a lot more clear when you actually get into the process and keep in mind when you say payroll you hear payroll don't get nervous about that that just means your income and we'll talk more about that as well but the cool thing is you now get twenty thousand dollars and the amount varies based on how much you earn right so it could be as low as a thousand dollars it can't be less than a thousand dollars could be over a hundred thousand dollars it could be millions of dollars but anyway the point is it's tax-free money but the other thing that's cool about it is when you take that tax-free money and you spend it on paying yourself or your employees or your business expenses or all three of them combined you will also be able to write off on your business tax return those expenses which means that in addition to getting twenty thousand dollars tax free you are also basically getting you know whatever your tax rate is let's say your tax rate is 25 usually you pay an average 25 percent of taxes well in that case and this is obviously individual like it depends on who you are as an individual but in that case you would be getting an extra 25 and just straight up tax savings so that way when you file your tax return next year you're like oh man because i spent 20 000 of money that wasn't mine but the government also let me claim a tax deduction i basically just saved an extra five thousand dollars like that's freaking awesome this loan grant is really really powerful so if you're interested in like stimulus checks kali you could literally forego any stimulus check and just take the ppp and you will probably make more money with the ppp if you have a side hustle and you actually have some income with your side hustle or some way self you know in some way self-employed problem is so many of us get confused because we hear wait so is it a loan is it a grant like i'm just a small business owner i just go work for people and i get paid and that's it like this all seems really complicated yeah and that's the unfortunate thing about this program is this program has been so great for businesses that are taking like these one two three ten million dollar loans you know the ruth's chris steakhouse and all these other companies uh it's it's great for them because they look at this program and they're like what tax-free money and it's forgivable if we spend it on payroll dude and we get to write off taxes as well uh yes because big businesses understand that instantly but small businesses especially women-owned businesses minority-owned businesses black latino owned businesses are not getting the proper outreach and this is statistical this isn't me making things up this is statistical they're not getting the proper outreach and education to know that this is a loan you should be applying for because it's basically free money the government is totally failing and communicating this stuff they don't have like an andrew cuomo every day going all right folks here's the latest on the ppp you know here's the q a today right so yeah i mean there are some of us on youtube trying to do this as well and of course there are banks that that are trying to help folks as well but it's so confusing that a lot of people just never even apply and so what i want you to remember as you go through this entire process we go through this q a is folks write this down when in doubt apply when in doubt apply all right so let's talk a little bit about eligibility so the first thing that i get asked a lot and this is this is the first well this one right here we've got a lot to unpackage i'm going to read this statement here because we're going to get a lot of answers out of this so the statement is kevin i don't have an llc or corporation or anything i am an electrician who does side jobs and most of it is straight up cash when you say it's free stimulus in the form of a ppp loan the word loan is probably why i'm second guessing myself i do side jobs by myself and have no help from anyone else do i have to pay this loan back or is there some kind of forgiveness my worry is getting audited or something bad and see this is again the complete failure of our government so let's clear these things up one at a time because there's a lot to unpackage here first do you need an llc to get the ppp loan no do you need a business license to get a ppp loan no does your credit get checked for a ppp loan no do you need an s corporation or a c corporation to get a ppp loan no all you need is to have shown that you made money in 2019. you got to show you had revenue in 2019 it means you can't really apply for this if you didn't have money coming in in 2019 in your business if you just started a business in 2020 in you know july it ain't gonna happen now technically the cutoff is february 15 2020. so yeah if you're that special case where you made money and you started business january 1 2020 to feb 15. sure you also qualify but in general we're looking at 2019 income to get people these loans and these particular loans and again yes it is a word loan and the reason it's a loan is because there are rules you have to spend it on payroll you can't go yolo tesla call options you got to spend it on payroll you got to spend it on business expenses as long as you do that as long as you follow the rules the loan is forgivable which makes it a grant so don't get discouraged by the word loan it is forgivable here's what i like to tell people as well because i think this really will will help you if you are still in doubt about what i'm saying watch this let's say you pay yourself two thousand dollars per month in income from your job you pay two thousand dollars in rent and utilities and and you know that's part of your business expenses so in total your business is technically paying four thousand dollars a month for rent utilities maybe some business contract supplies or whatever and you're paying yourself two thousand dollars a month uh or that's effectively what it works out to at the end of the year when you're like how much money did i make oh i made twenty four thousand dollars okay that's kind of like paying yourself two thousand dollars a month right so basically in this example where you're paying yourself that two thousand dollars a month in payroll and then you have two thousand dollars a month in expenses that's about four thousand dollars a month that your business is technically paying and you're getting two thousands of dollars of that right and two thousands go into expensive but your business is paying four thousand dollars well ppp says you can take two and a half times that as a ppp loan slash grant which would be ten thousand dollars two and a half times that ppp round two is the same except if you're in hospitality restaurants or accommodation you can actually do three and a half times this number which is kind of cool but the cool thing is now you get this ten thousand dollar loan basically which we want to be a grant but remember you would be paying this money anyway you'd still be technically paying yourself for taking two thousand dollars out of your business a month you'd still technically be paying these two thousand dollars a month in in business expenses so if you're in doubt about this program keep paying this stuff get your ten thousand dollar loan now you're not going to keep paying this because the loan is going to pay this money take the money that you would have paid and just put it aside that ten thousand dollars that you would have paid put it aside into another account basically use that loan money to pay these things for you apply for forgiveness and then when you get forgiven then you can use the other money that you put aside it's basically a way of saying if for whatever reason your loan doesn't get forgiven which the odds are like 99 plus of these loans are going to get forgiven unless you really screwed up the program which is kind of hard to do but anyway worst case scenario then then fine you keep paying it you set the size money aside anyway so like what i'm trying to say with this example here is you're better off taking the loan money and then just giving it back if you you think you didn't qualify or you think you you didn't end up uh following the rules to where you could get the loan forgiven then just give it back uh but otherwise you should take it use it apply for forgiveness and i'm gonna say 99 of people who apply for forgiveness are getting forgiveness again unless you you took the money and you're like hey i took this ten thousand dollar loan you all gave a and i put it in a tesla stock yeah you're not going to qualify for forgiveness then now there is still technically a way you could put that money into tesla stock see when you operate a business the cool thing is remember how we were saying you're paying yourself two thousand dollars a month in this example the cool thing is you take that two thousand dollars per month and you pay it to yourself to you so your business paid you the two thousand dollars whether that means you you transferred it from your business account to your personal account or you withdrew the money from your business or whatever some way the business paid you you wrote your business wrote you a check whatever then yeah once the money is yours you could do whatever you want with it at that point you could go on a vacation hawaii that apparently that way you know you could buy stocks with it and sometimes this gets really confusing to folks who don't necessarily have business accounts or payroll that is less important to worry about right now at some point if you do get this loan you do want to make you want to have a very clear paper trail that whatever money you are borrowing you are literally using to a continue paying yourself and your employees if you have employees you don't need to have employees and b you're paying for business expenses as long as it touches those things first that's what matters the money's got to go there first it's kind of the same as think about it this way let's uh let's say you you have an employee who works for a thousand dollars a month you're gonna write them a check what they do with that money afterwards does not matter they could literally take that thousand dollars and burn it it doesn't matter but the point is the business paid that employee so the big point is when you get the money just make sure you're actually spending it on the proper things if you are a sole proprietor it doesn't hurt to just open up another account wherever you bank call it the business account and then that way when you get the loan money it goes into your business account you could transfer that loan money to your personal account and then that way it's really easy for you to be able to go and show look here i got my ten thousand dollars i here's the transfer where it shows i paid myself that money and i spent the other money on the expenses here's my utility bill or mortgage or whatever related to my business boom done that's the beauty of the ppp they try to make it very very simple it's obviously much easier if you do have an s corporation you pay yourself payroll you've got the different bank accounts already but if you don't make another bank account you don't have to have an llc or s-corp though okay uh more questions here so what if you have a full-time job and you work on the side can you still apply the answer is yes just apply based on whatever income you have from your side hustle what if you filed bk like chapter 13. well the cares act doesn't say that you can't get the ppp but there have been lawsuits about this so it's a little complicated it's not clear i would just apply to multiple different banks to see if you can apply some people apply to four different ppp lenders and they get accepted at all of them and then they just pick the highest loan amount some people apply to four different ppp lenders and they only get accepted at one so generally if you get denied just go to a different bank go to a different lender unless it's like yeah you probably shouldn't be qualifying anyway i would just keep trying can you apply for ppp round one if you're working again so yeah the answer is yes you can apply for ppp round one if you're working again if you had a hardship at some point and you think that hardship might come back or you have a hardship now that's pretty much your only requirement to apply for the ppp there's no requirement that your income had to go down for the first round the biggest thing is you have to check a little box and then you have to initial next to it once you sign saying because of the current environment that we're in and hardships facing the business this loan is necessary to keep the business going and remember it's going to be a grant right and so a lot of people interpret this in many different ways some people say well i'm fine right now i don't really need it and then they say but what if we go on another lockdown what if there's another coveted pandemic this is really where you have to because i'm certainly not a lawyer and i can't give you this advice on how to answer that question as to whether or not that qualifies for you but first of all the treasury department came out pretty clearly and said look loans under 2 million dollars we're pretty much just saying that we believe you if you think you had a hardship and you have a loan of under 2 million we believe you we believe that you have a hardship or you think you might have a hardship so ultimately i think it comes down to sort of an ethical question of do i want to apply or not there are some people who look and say well look the last ppp had 143 million dollars left over because i also get other questions they're like well if i apply for the ppp and i'm only needed a little bit am i not taking the money away from someone else not really because again the last loan round had 143 million dollars available left over nobody was taking it so it's sitting in a treasury bank account not doing anything and a lot of people look at that and they're like look it would be better for me to take the money spend it and stimulate the economy then the money just sit there not being used so you know how we declare our ethics i think is is ultimately up to us but those are some of the arguments that that people make in both ways but yeah you know there's no requirement that your income uh couldn't have gone up for round one eid l and ppp so you got the ea so somebody says they got the eidl and the ppp won can you get the second so to get the second ppp you actually have to show a 25 decline in income comparing a quarter in 2019 to a quarter in 2020 it has to be the same quarter so for example if you say hey in uh quarter one of 2019 i made ten thousand dollars but in quarter one twenty twenty i made six thousand dollars boom yes you'd qualify a 25 loss is what they're looking for if your income went up in 2020 quarter one but your income quarter to 2020 compared to 2019 was lower well then you can apply because you get to pick which quarter it is now can you get the ppp if you operated a lost first year this gets complicated generally you have to show that you have income in 2019 so you can actually show that you've been impacted because if you're a money losing business and you're still a money losing business it's kind of hard to say that you've been impacted so this is going to cause some issues and there's a good chance you might get denied a lot of places generally what i recommend people do is try to apply when in doubt apply apply in 2019 and say hey look i've gone through more hardships in 2020 and that makes this ppp loan necessary but beyond that the easiest way to actually get the ppp if you are losing money or you lost money in 2019 is if you are an s corporation this is specifically for the money losing example because with an s corporation it's really easy for you to show payroll because you can go look my my business paid payroll generally if you have an s corp you pay payroll uh i paid payroll here's the payroll i paid in 2019. we're still paying payroll now give us the paycheck protection program then it doesn't matter so much if you lost money but if you just you know sold on etsy and you lost money in 2019 and you declared that you had a negative net profit on your schedule c tax return line 31 they say it's gonna be pretty tricky losing money is going to be a little tricky unless you're an s corp can you apply if you started your business in september of 2020 no the ppp is only available if you started your business prior to february 15 2020. how much info do i need from my work i do 1099 work you literally need the form 1099. the form 1099 is by far the easiest way for you to apply for the ppp because if you got paid a or you got you received a 1099 from your real estate office from your from uber from lyft from doordash whatever in 2019 they will take that revenue that you generated that income and use that as your payroll which is pretty cool they don't even take expenses out like 10.99 golly if you have a 10.99 which many of you do please apply for the ppp it is so freaking easy to do and then and then again if you don't have a second bank account make a separate bank account let the loan money go into the new bank account and transfer that money every month to your regular bank account and then that way see i distributed the money can you apply for the employee retention credit as well as the ppp yes but you have to be careful you cannot have like you can't use the same uh benefits in the same period of time so generally you want to sputter this out so to speak recall it so make sure when you're using your ppp money that's paying for payroll you're paying for that specifically at a set period of time where you're not using the other benefits that's the cleanest way to do it the employee retention credit can be a little complicated i personally would just try to separate when you're using that so uh if you're getting the ppp for eight weeks use the ppp for eight weeks which is about two months use the employee retention credit for the other four weeks the other part of that quarter i would try to separate that make it very very clear that they're separate now if you became a 1099 worker on april 13th 2020 do you qualify no because again february 15th is the cutoff will this hurt my debt to income ratio so the ppp technically doesn't show up on your credit report so if you're planning for a mortgage maybe not however sometimes banks will ask for your bank accounts like your bank statements and they can ask you hey what are these deposits for if they see a big deposit that's like ppp loan yes it will hurt your income until it is completely forgiven it will hurt your debt to income that is can i apply for the ppp if i made zero dollars in 2020 but made 40 000 in 2019 well honestly it sounds to me like the ppp was basically designed for people like you you made forty thousand dollars in 2019 now you made zero in 2020. it literally sounds like you absolutely should apply for the ppp i mean just as a quick example if you made forty thousand dollars divided by twelve that's three thousand three hundred dollars times two point five you could probably get a ppp of eight thousand three hundred dollars in totally free money like you watching this video may have just made you eight thousand three hundred dollars and you could probably apply for round two as well which would double that you would be able to get another eight thousand three hundred dollars unless you were in hospitality or accommodation then you could get three and a half times which would be eight thousand dollars plus like eleven and a half thousand dollars yes applied so you officially formed your llc here's another question officially for my llc at the beginning of february before february 15th do i qualify so the answer here is if you made money if you like nobody cares really when you formed your llc people care when your business actually operated there are millions of llc's that are filed and people never do anything like they file it and then they're like they never do anything and they put the little binder on the shelf and they never do anything with it uh if if that's uh if that happens yeah i mean like that that's not really operating a business you have to show that you were actually operating a business and making money can a door dr driver get the ppp yeah use your 10.99 really easy to do can you make a business now to qualify no self-employed housekeeper with no employees my 2020 income increased yes so again you you have to attest that it's necessary for your business if you feel comfortable doing that you could apply for round one it's okay if your income went up uh you would have to attest to a hardship or or you know which some people say a hardship could be a perceived hardship but you won't be able to qualify for round two if your income went up what about getting the ppp loan for a rental property so for rental properties you have to be able to show net income before the pandemic hit and as long as your rental property business had net income i would say you could apply for the ppp if you had net income in 2020 in 2019 rather you should be able to apply for the ppp even if that was uh you know even if you became a landlord in december of 2019 uh you know in my opinion do you have a side hustle and a business and you should be able to apply for the ppp can you amend your 2019 tax return to show sole proprietor income and then apply for the ppp yeah so this goes to a lot of cash businesses who didn't report taxes uh the problem here is if you amend your 2019 tax return and you show all the sole proprietor income you're gonna have to pay taxes on that money which you probably should be doing anyway uh and and then you can apply for the ppp can you get both ppp rounds at the same time yeah technically you can this gets a little complicated because again you don't want the overlap so you have to butter this out are uber drivers eligible yes do you have to pay back the ppp not if you follow the rules for example keep this mind what expenses qualify for the ppp the current rule is 60 payroll 40 rent utilities mortgage payments necessary supplies and contracts it used to be 75 25 and i believe now they're giving you flexibility on whether you want to go with 75 25 or 60 40. if you started a business that didn't take off and you didn't make any money well then it won't work for pvp round two what's different the biggest thing is you have to show a 25 per quarter loss or or quarter to quarter loss compared 2020 to 2019 and you get to pick which quarter that is but there are also some extended eligible expenses and again accommodations and restaurants get some extra benefits too three and a half times instead of two and a half times for payroll what if you deal with cash only again if you're not paying taxes it's gonna be hard will i qualify if i started trading stocks in july of 2020 no because you didn't start working before february 15th then somebody asked if they're eligible if they did independent contracting as a w-2 so that doesn't work those terms are mutually exclusive you you can't be an independent contractor at the same time as receiving a w-2 unless they're two totally different jobs in which case you could be but if if you are getting a w2 and you're not getting any 1099 then you're an employee and you're not eligible w-2 equals employee equals not eligible 10.99 or getting money from people directly and maybe not getting a 1099 means self-employed can a realtor apply yes a realtor can apply what if you're you had a substantial income like over a hundred thousand dollars sure you can apply if you have an s corporation you pay yourself payroll you can use that if you uh have just reported on your schedule c and it's over a hundred thousand dollars then you'll likely get limited to a hundred thousand dollars of pay that they'll take and then what they'll do is they'll do a hundred thousand dollars for the year divided by 12 and then that's eighty three hundred dollars or you know eight thousand three hundred thirty three dollars times two point five you could get a ppp loan of around twenty thousand eight hundred dollars yeah you should apply what if i own multiple businesses can i apply for each separately yes you actually can what if i have an s corp for one side gig and a sole prop for another yes you can apply for each i haven't applied for the first should i now i believe so i mean if you so far everything that you've listened to this resonates with something you feel comfortable doing attesting to the hardship and and you know spending the money on paying yourself for required business expenses like rent and utilities yeah of course do you think taking uh oh this is a good question do you think taking aid that you don't need makes it so others won't actually get it no i don't think that because i think too many people are scared of this program and the money's just not getting used as much as it should be that might be less true now because people have gotten more familiar with it but uh you never know i would go for it uh in general but look if you look if you don't need it i shouldn't say i would go for it because remember you are the one who's attesting to a hardship so if you don't have a hardship then you can't sign that box and so then you probably shouldn't take it but i wouldn't be worried about taking money from anybody else that's what i'm trying to say what if you own a small business but you're just now registering as an llc nobody cares when you registered as an llc it doesn't matter wells fargo says find your 2019 irs tax form 1040 schedule c line 31 net profit if the amount is over 100k reduce it to 100k if the amount is zero or less you're not eligible yeah so wells fargo is telling us that basically if you made zero money on your schedule c or you have a negative income on your llc or on your schedule c you're not eligible not all banks are going to agree with that so i would continue to shop around if you had that loss on your uh on your 2019 especially if you could show some sort of continuity of business into 2020 and that you are paying yourself well okay let's see the scared the debt won't be forgivable so i gave that example earlier where if you're worried it's not going to be forgivable then just assume you have to pay it back and then if it gets forgiven there you go now you could spend the other money you were saving up in the meantime oh here's a big one collected pandemic unemployment assistance can i apply yes yes you can apply for the ppp and be on unemployment yes the issue is when you get your loan you have to pause your unemployment and for the next eight to 24 weeks whichever you choose eight or 24 weeks you cannot take unemployment while paying yourself payroll because remember if you're on unemployment it means you're not getting paid if you're taking the ppp and you're paying yourself then you're not eligible for unemployment so you take unemployment now you get your loan you pause unemployment now you pay yourself from the ppp pause ppp comes to an end boom you go back on unemployment if you need to yes you can do that how to report funds already collected through the pua so unemployment funds are taxable unlike ppp funds which is why you should want to do the ppp because it's kind of like tax-free unemployment right uh it's not really designed to be unemployment you should be working right that you should be working in your business and trying to get up like there was a question about a photographer who's like look i i'm on unemployment i don't have gigs right now well should i take the ppp take the ppp and then go market your business for eight weeks and then go back on unemployment if you didn't get busy so regarding the unemployment though there is this odd question of if you're trying to apply for the second round of the ppp where you have to show a loss but you've been collecting unemployment is that going to affect your ability to claim a like a decline in income that's unknown i don't know the answer to that technically the way the cares act was written they do not want unemployment to disqualify you from other federal programs whether or not that applies to the f the ppp i don't know but i would try when in doubt apply so here's a question i made two thousand dollars in 2020 and 5k in 2019 driving for doordash how much can i get right so if you made five thousand dollars they're going to divide that by 12 in 2019 and then they're gonna multiply that by two and a half which works out to about a thousand forty one dollars the minimum loan amount is a thousand bucks so you probably get about a thousand dollars for round number one so if you got a thousand dollars for round number one as a ppp uh hey that's a thousand free bucks why not if you made two thousand dollars in 2020 you had a decline in income so you'd be able to apply again so if you applied for both rounds which some say you could do in the same application you just apply and they offer you both rounds uh maybe you can get another thousand bucks so maybe you could even get two thousand dollars totally for free why not for for taking a few minutes to fill out a form not a bad move can you take the ppp if you're the only employee yeah nobody cares if you have employees or not it does not matter it will change the amount of paycheck protection program money you can get but it doesn't matter if you're the only employee and and if you're like i don't have any employees and i don't even know that i'm my own employee if you're self-employed you're an employee of your own business any advantage of going to paypal over another bank no i don't think honestly wherever you can get approved is where you should go just apply can i get approved without 2019 taxes it's gonna be tough does everyone get ten thousand dollars across the board no so i think this is a reference to the eidl grant and if you type into youtube meet kevin eidl ten thousand dollars you'll learn a lot more about that if you are a sole proprietor the max you can get is a hundred thousand dollars with no employees yes can content creators get the loan sure if you had income and if you had a income for your business and you filed down in 2019 of course if i only started working in the latter half of 2019 in august and i didn't file would i still apply well i don't know why you wouldn't have filed the only reason you wouldn't have filed tax your taxes is if you didn't make income if you didn't make income probably not when will 10k advance be available again that's eidl that when you hear just the 10k advance it's probably having to do with the eidl type into youtube meet kevin eidl 10 000. didn't qualify the last time and we're having a hardship getting contractors and pricing for rental properties now can we qualify now try with multiple different lenders landlords are a type of business pvp loans how are they audited and will i have to claim it on my taxes so you do not have to claim it on your taxes and under two million dollars the treasury department is saying you know with the exception of fraud that they're basically taking your word for it uh requirements for ppp forbearance you just have to show that hey here's a statement showing i transferred the money to myself as pay and i paid these utilities and these business expenses and these you know mortgage payments or whatever as part of your eligible expenses the bank will make it very clear to you what's available for you in terms of eligible expenses and you can email or call them once you actually get approved for the loan what i would do is apply get approved and then call them and ask more questions hey i got approved i want to run this by you easy way to do it how do i know that i don't have to pay it back i mean we've kind of covered that quite a few times i would say uh you know if you follow the expense rules if you're still worried about it follow the rules you're probably not gonna have to pay back but if you're in doubt just assume you have to pay it back worst case scenario you give away you give back the money you got is the worst case scenario in that case right the worst thing you could do is take the money not follow the rules and not be prepared to pay it back but if you follow the rules it's probably going to get forgiven very likely going to get forgiven all right so then we have uh let's see here somebody's saying i got an alert that they're asking for a 2020 irs form 941 that's a payroll form or a payroll statement covering 215 2020. so what they're asking you here is they want to see proof that your business actually paid you money uh covering february 15 2020. so show some draws from from your account that were personal draws uh like here i sent a thousand dollars to my personal bank account that's an example or here's my payroll statement if you have that if you have the 941 great or what some people do is well kevin i only have one bank account well then go through it and go okay well here 10 times i spent 100 on personal items that was my pay and show that so whatever you can do to try to justify like this was my pay it's all in one account that's what you should do am i eligible if i do amazon fba if you've had income in 2019 the answer is yes if you haven't done payroll in 2020 should you apply as long as you've done payroll in 2019 yes can a permanent resident get the ppp yes but not at all banks in a weird way i am a restaurant worker slash bartender can i apply only if you actually get paid as an independent contractor like a 1099 worker if you get a 1099 yes if you get a w-2 no payments deferred or do you pay monthly so payments are deferred on this loan for six months and potentially as long as 10 months because the sba takes some time to actually reply to your forgiveness application and that is a considered a deferred period too did doordash a couple of times since the pandemic started can i apply if you didn't do it before february 15th the answer is probably no start at a side hustle in 2019 could you so okay if you started a side hustle in 2019 you should be eligible as long as you show that you had income on your 2019 tax return uh day trading is side hustle sure again if you showed income in 2019 should you apply if you didn't show income on a rental for 2019 on your tax return so if you didn't show income on a rental for 2019 and yeah it's a rental property it's really difficult to say that you're probably going to get it i don't i don't think so i don't know if it's worth applying you could try it you know when in doubt apply but it's really tough when you have a money losing business in 2019 and you don't have a clear payroll structure like through an s corp to get the ppp so if you're losing money in 2019 you better hope you got an s corp set up and if you don't it's gonna be tough it's gonna be tough you could try but you really have to show how you've been paying yourself if you never let's see took yourself off unemployment your ppp might not be forgiven this is true remember you have to take yourself off unemployment when you take your ppp money during that period of time i took ppp round one should i apply again yes if your income has gone down 25 no let's see here no self-employment income in 2019 because you were w2 in in 2019 but then you did uber full time in 2020 should i apply probably not because you have to show a loss of income between your or from your uber business from 2020 to 2019 you can't do that because your income in 2019 was zero i only worked for cash does that count if you paid taxes yes but if you didn't probably not if you don't report it on your taxes remember you really can't get the ppp how much do i apply for so when you fill out the forms you actually go through calculators and they give you answers on exactly how to do that ppp as a landlord yes again as long as it showed income our 2019 tax is a must yes 2019 taxes are generally a must minimum ppp loan usually 1k can you take 100 as a salary so this is up in the air some people say that you can and they submit the uh forgiveness application the banks are fine with it others say the banks want to see at least 75 percent well 75 payroll and at least 25 towards other business expenses it's not clear though you could try to apply for 100k or apply for 100 and then see what they say if they ask for more documentation give them more documentation when you apply for forgiveness how long until you hear back it's up to 90 days some lenders aren't taking first-time applications then go to a different one okay what else here what if i only have a 10.99 well that's actually all you need will it cover 24 or 8 weeks you have a choice as to whether it covers 8 weeks or 24 some people do 24 because it lets them cover more rent payments and utility payments all right so if you are a sole proprietor generally you want to keep in mind you're generally maxed at 100k sole proprietor means you don't have a business entity not an llc corporation s corp whatever it's probably most of us like you're getting a 1099. if you've reported this self-employment income on your schedule c you should apply for the ppp best case scenario here is you've got your 1099 though the cool thing it's like really beautiful the cool thing about the ppp with 1099s is this so watch this ordinarily if you are self-employed and you report it on your schedule c you will say all right i had in 2019 i had a hundred thousand dollars of income but on the schedule c it subtracts your expenses so let's say you had 50k in expenses that means you had 50 000 in net income and then they're going to say cool 50 000 divided by 12. that's how they're probably going to calculate your ppp and then times two and a half so divided by 12 is 4166 times 2.5 is thousand four hundred sixteen so you'd be able to get about ten thousand four hundred sixteen dollars in this scenario but if you got a 1099 and you made 100k on that 1099 well they're going to take a hundred thousand dollars divided by 12 times two and a half which would mean you would get about a ppp loan of about twenty thousand eight hundred thirty three dollars see they're not actually considering your expenses when you use the 1099. so the 1099 is really powerful okay so uh if you have an s corporation or c corporation remember generally you pay yourself a salary if you are an llc some people pay themselves salaries in an llc and that's easy but if you don't pay yourself an llc salary and you just take distributions you might have to find a banker that's okay with that some banks are okay with that now okay where do you apply so you can go to crossriversba.com to apply you could go to a small community bank or a local bank to apply but usually you have to business have a business account there so sometimes it's easier to use like the online you know the paypal the blue vine the cross river sba but let's just do this together here really quick let's just go on over to blue vine and let's let me just expose you a little bit to what this looks like uh because i i really implore you to do this so what you'll see when you go to bluevine.com and i am i'm not sponsored by them i'm just picking one randomly here like another one you could do you could even type this in go to medkevin.com veeam v-e-e-n uh victor echo echo mike and see it redirects you to cross river sba apply now just do it apply it both of them so just hit get started like literally do it okay what do you want here select a product to continue business checking or paycheck protection well we're doing ppp so that's what we're going to click on all right cool have you previously received the sba p or the ppp loan let's just click no first name last name all right let's put that in preferred phone number let's just make up a number here okay and then let's put an email here i don't know i'm just going to make up an email here treasury walter kevin gmail.com and let's do uh ppp i don't know let's just make up make up a password here uh i don't know all right whatever it doesn't matter okay i agree get started so let's see here let's get this darn thing to load and let's get our application on the way good business name all right meet kevin the youtuber honestly your business name doesn't matter so much see because there's business name and trade name what what so for example in my case because i have a corporation i'm actually my business name is actually the paphrath organization and my trade name is meat cabin it's my trademarked name is meat kevin but honestly this could just be like something like this uh having my business name could be kevin pavlov it could be my normal name and then over here it could be kp uh darn autofill here kp electrical right uh because that's that's my work that i do or whatever so then put your address in one two three main street there we go we'll just pick that address here uh work phone number let's put my tax id or ein in so this is your social or your um ein for your corporation okay i think uh nine digits four uh seven nine okay perfect uh annual revenue well let's just say we made a hundred thousand dollars one two three customers who are my customers i don't know uh both private business and okay perfect now this what you are here is is important so sole proprietor means you're gonna use your schedule c partnership means you're you're going to use some partnership documents and maybe you have a salary with that c corp and s corp you generally have a payroll some sort of salary or payroll that you're getting independent contractor means you're getting a 1099. self-employed is probably going to be just like schedule c it's probably similar but let's just see what happens let's click on self-employed individual here existing financing none all right next let's see what's next okay have you received a shuttered venue grant no are you the president really are you the president of the united states no is your business a publicly traded company no is your business in bankruptcy no see this could disqualify you that's why the bankruptcy issues problem a problem has your business permanently closed nope it might be closed now but it's temporary is your business a farmer ranch nope is your business a designation marketing org nope will you use your pp fence for lobbying no is your business a news organization with multiple locations no is your business a tax-exempt non-profit no is your business a government-owned hospital now does your business receive revenue from illegal gambling no are you a household employer nope uh individual employee nannies employing nannies oh that's interesting i wonder what would happen if we hit yes there is your business a hedge fund nope does your business engage in illegal activity nope next all right provide financial data oh look at this okay so literally here we would uh wow this is this is actually they make this actually really easy uh let me really quickly just make a cause we're not gonna actually submit this right uh let me just get a generic blank pdf here because they'll probably want me to upload something bank statement okay and so i would have this prepared like get your your bank statement ready and have that prepared it's not a bad idea to have these things ready to go so okay let's pop back on over here so bank name well okay i bank with chase go to your your checks like if you have a check you can get your routing number and account number to get your information off this if you do not have this what you could do is you can go to your bank statement and actually get this information off your bank statement uh oftentimes you'll get the routing or the account number off your bank statement and you can call your bank and ask them for the routing number or google it it's it's a pretty generic number this is the unique number this one matters okay attach a statement so i just quickly made a pdf here that has bank statement there's there's nothing on it but uh let's continue must be nine digits okay well i must have missed a digit or i went too far there we go uh provide financial data continue haha it's working okay good so now i have to put in an address here so let's just put in a p.o box they don't need to know this is a p.o box for right now phone number same thing we did before birthday oh yeah my birthday's coming up social let's just put in something generic here there we go roll or title okay sure boss 100 business owned by yup me sounds good by clicking next i certify of the ability to control direct and manage the business yep sounds good to me okay we process your information might take a minute okay we need one more document update your driver's license front and back and i don't know let's just upload the oh they don't let me upload the same blank statement i had so let me just change the title a little bit i think let me do that oh does it have to be a picture oh see this has to be a picture okay so we'll do a couple little quick screenshots here yep it's got to be a jpeg no problem or png fine the image you provided is too small oh how how do they know let's try a couple larger ones obviously this should actually be your driver's license uh somehow they've got an algorithm that determines your file will be reviewed manually yes no wonder next uh all right so add paycheck protection program details is your business seasonal no business start date january one let's say 2019. aside from payroll what else will the loan be used for sure we'll do some uh lease or mortgage interest utilities and that sounds good to me sixty percent of the loan must be used for payroll okay so now they're saying 60 it used to be 75 it might be you know maybe it can be more than that but yeah i mean they want the bulk of it to be payroll so that's fine industry classification oh real estate we'll go with that uh okay so average monthly payroll learn more about how to calculate this oh how cool look at this they've got a whole page here on how to calculate this but what we're going to do is see look at this ah check this out they actually tell us here payroll calculations only on u.s based employees for the purposes of calculating average monthly payroll most applicants will use average monthly payroll for 2019. excluding costs over 100k per employee for seasonal for seasonal businesses the applicant may elect instead to use the average monthly payroll for any 12 week period between feb 15 and feb 15 2020. so 19 and 20. okay got it for new businesses average monthly payroll may be calculated using the time period from january 1 2020 oh look at that to feb 29 2020 at this website that's pretty cool so give you a little bit more time to give you that average over those eight weeks there if you're not an employer your average monthly payroll is based on line 31 net profit on schedule c whether or not you filed a schedule c uh so at this website if we're negative we're probably not going to be able to apply at all it's just not going to work if this amount is over 100k reduce it well so let's say i have you know my income says so and if you had a 1099 you they say you could just put in the top line number here but because we chose self-employed instead of independent contractor let's say our average monthly payroll is four thousand dollars and we're the only employee what time period did you use for this 2019 i confirm uh let's see it wants it to match line 31 from schedule 3 and here it is where and there's a question about this they do actually allow you to use a draft which is incredible that they actually allow you to use a draft i assume at some point though they'll make you file that i certify the place of businesses in the united states did you get the e-idl no outstanding eid l balance uh so if you got the loan they'll calculate this out for you let's see if yes is the applicant or any applicant suspended no applicant oh directed by the espa no owning 20 no not in jail five years felony fraud no schedule c uh owner of another business no franchise no demographic information sure we can put this in why not we'll go ahead and uh put some info in here non-veteran okay i certify okay so i'm not gonna submit this because this is obviously a totally fake application here right uh so we're not going to actually submit this but uh yeah what would happen now after we submit is they would probably come back and say hey great because they didn't ask us in this application process they'd come back and say hey send us your schedule c in this case so there we go and i would do exactly that at multiple different lenders to see what i get and what they respond with and the big bottom line folks when in doubt apply hopefully you found this helpful if you did consider sharing it and folks we'll see in the next video [Music] you

Channel: Meet Kevin

Views: 512,647

Rating: 4.9093523 out of 5

Keywords: stimulus, ppp, paycheck protection program, pay check, payroll protection program, stimulus ppp

Id: gidv45z8Rx4

Length: 51min 16sec (3076 seconds)

Published: Sun Jan 24 2021