PPP Loan Fraud | DON'T Do This If You're Self Employed

all right let's get started today i'm going to share with you some concerns many people are having about if they got too much ppp money and what you should do so that you're not investigated for fraud you're not going to want to miss this probably heard by now but businesses entrepreneurs even celebrities and athletes have been investigated for fraudulent ppp loan activity in some cases there have been arrests and in others the investigations are still pending so i wanted to help alleviate any nervousness or concerns you might be having if your ppp loan amount was incorrect in this video i'm going to go over exactly what to do to number one ensure that your ppp loan amount was correct and number two get in touch with your lender to be sure you know the exact forgiveness amount available and if there is any extra money i'll guide you on what you can do with that money until your lender is ready to accept it back okay so let's jump right in i have been on a number of one-on-one consultation calls with me and a client who are worried that they have received too much ppp money and on one hand it was an honest mistake and on the other they're wondering if they can actually use those funds to help their business however there is a specific amount of money that was supposed to go to each individual business and i'm talking about the self-employed the independent contractors the sole proprietors here these are people who did not have employees so their loan amount was essentially based on what you would call owner's compensation and that owner's compensation is 100 percent forgivable when you elect the 24-week covered period for forgiveness now i've done videos on how to pay yourself your ppp 100 owner's compensation along with how to fill in the easy ppp loan forgiveness form but before you go and try to check those videos out i want to guide you on what to do today so first i'm going to include down in the description of this video access to a ppp loan amount calculator this is completely free to sign up for but i simply want you to plug in that line 31 and see what your correct ppp loan amount should have been now what's great is if you know that correct number you know exactly how much you're allowed to pay yourself and once you are certain on that number you can then withdraw those funds and use them as owners compensation aka paying yourself however i've heard of people getting tens of hundreds of thousands of dollars extra maybe the bank made a mistake maybe you had somebody helping you fill in the application and they messed up and it is a major concern if this is happening so what i'd like for you to do next is to take action and contact your lender specifically we're going to send them an email or a secured message if you have an account with them now in this message to them you are going to address your ppp concerns and request guidance from your lender and this is going to become important for two very important purposes number one you are creating a legal document trail that you had concerns about perhaps having too much ppp money and number two you are seeking guidance on how to give back any extra money now to be clear the sba no longer offers any sort of guidance on how to give back excess funds and many lenders to be honest with you are unsure of how to proceed either without that sba guidance so here's what i'm going to recommend in the description of this video i also have the exact email you can send something short and sweet it reads just like this hello name of your ppp lender i am writing because i have concerns about my ppp loan especially for the purposes of full forgiveness the sba guidance is a bit confusing so i'm wondering the following one was my ppp loan amount correct two if not how do i give back any funds that will not be forgiven sincerely your first and last name and include your ppp loan number for reference and there you go send that message and wait for a reply from your lender not only have the banks and the sba kind of been all over the map with what to and what not to do it's been confusing for everyone but your goal is to spend the appropriate amount of money and give the rest back and that brings us to my last suggestion for you i would take your entire ppp loan amount that was deposited and transfer it to a brand new account consider it a ppp account i've been using cit bank because they have a higher interest rate and i can earn a few bucks off of having that money in that account i'll leave a link for that bank down below in the description if you'd like to check it out now the reason for the brand new account is to keep your documentation crystal clear it's not going to be muddied with other sorts of withdrawals or deposits and you won't have to explain much in terms of what the money was used for see if you got too much money and you deposit that entire loan amount in a new account your new statements from that account are simply going to show one your deposit of the entire ppp loan amount and then two your withdrawals to pay yourself the correct ppp loan amount that you're allowed to withdraw the rest is going to stay in that account and no do not use it you might be tempted to you might be thinking oh it'll eventually just become a one percent loan but you do not want to be caught with your hand in the cookie jar so to speak saying oh i thought i could get away with it no leave that money there collect a little bit of interest on it if that's what the bank account is going to give you and it will and then wait for your lender or the sba to provide further guidance please i'm trying to help everyone here do the right thing it's not okay if the bank gave you extra money just to think that you can use it and you're gonna get away with it scot-free likewise the timelines on forgiveness are taking forever many banks want you to elect the 24-week period in order to give yourself enough time to use all the money in doing so 100 of that loan can be forgiven however 24 weeks is a long time and the banks then have an additional 60 days to review your forgiveness application at that point and be prepared for a longer wait here the banks then pass that forgiveness application along to the sba and they have an additional 90 days until they get back to you about what is forgiven and what isn't there'll be a brief window during that time when you'll be able to return the funds but that could be months or even into next year so just be prepared to sit and wait however going back to the beginning i want you to take all the steps necessary to use the proper amount of money and be prepared to give back whatever extra amount you got okay let's recap many people are concerned that maybe they got too much money or maybe the loan amount was wrong i'm going to suggest right now that you first sign up for my free loan calculator to figure out your correct loan amount based on line 31 schedule c of your 2019 taxes then i want you to copy and paste a similar message that i left down below in the description to your lender asking for them to give you some guidance on the correct loan amount and what you should do with any extra funds that's going to help create a paper trail that you had some concerns that can be addressed at a later time and finally i'd like for you to explore creating a separate ppp bank account so that the documentation and the statements you might need to provide in the future are completely crystal clear and aren't muddied with other types of banking transactions all right let's wind this thing down i've been helping people one-on-one deal with this process and i know it's tempting if you get a little extra money to think you might be able to use it or float it but there are other legal ways to get capital for your business in order to move forward i wouldn't want you to get caught in an investigation where you have to explain why you were using funds that you weren't entitled to in fact the past few weeks i've been trying to get away from doing stimulus videos in order to provide you with opportunities for zero percent interest on business credit cards or other ways to look at your finances and plan for the future so please check out some of those videos they haven't been doing as well as maybe a ppv video like this and that's okay because i know a lot of people are still in survival mode and when you're ready to start looking ahead and and moving on to that growth mode i'm gonna be here for you and the same way i was here for you these past few months okay if you're new to the channel please be sure to hit subscribe like this video and ring the notification bell it really helps the algorithm and i really appreciate the feedback so thanks also i am available to book for a one-on-one consultation over the course of that phone call we can work through how to plan for the future we can discuss your business or anything that's been on your mind and sometimes it's just good to have somebody that you can connect with and bounce ideas off of so if you're interested in that i'll leave a link down below in the description as well and don't forget about our facebook group it continues to grow and i plan in the next couple of months to do some live workshops and zoom calls there so if you're interested in joining we'd love to have you all right as always i'm rich and until next time you

Channel: Rich Smith

Views: 113,377

Keywords: ppp loan fraud | dont do this if youre self employed, ppp, ppp loan, paycheck protection program, ppp loan forgiveness, ppp forgiveness, ppp self employed, ppp loan forgiveness application, ppp loan self employed, self employed ppp, ppp update, paycheck protection program self employed, ppp loan forgiveness self employed, how to pay yourself ppp, ppp loan forgiveness sole proprietor, ppp forgiveness for independent contractors, ppp loan fraud, rich smith - teacher entrepreneurs

Id: h0Igfj8mVTk

Length: 10min 8sec (608 seconds)

Published: Wed Sep 30 2020