![]() ![]() You can use a 2019 or 2020 Schedule C for your application. This can be taken straight from line 7 of your Schedule C. This will be who all future communications are directed to. Provide the name, business phone, and email address of the primary contact for the application. Business name and addressĪpplicants can choose to put N/A or provide the year they started business operations. If you’re unsure, you can also select Self-employed Individual. Or if your business is a full time gig, select Sole Proprietor. For example, if you do contract work on the side or work for a business like Uber, choose Independent Contractor. If you do not select “Payroll Costs” in this section, your application may be denied.Ĭhoose the box that best describes your business. The purpose of PPP loans is to protect paychecks. The purpose of the loanĬheck all boxes that apply. You can review the full affiliation rules the SBA provided here. If a third party controls your business and another business If another business controls or has the power to control your business If your business controls or has the power to control another business There are three main cases where your business and another business would be considered affiliates: Number of employeesĪdd up all employees across all locations and affiliates. Put the lesser of your calculated loan amount and $2 million dollars in your Loan Request Amount box. PPP loan amounts are capped at $2 million. Do not include your EIDL advance, as the advance does not need to be paid back. To be eligible to do this, you must have received your EIDL loan between January 31 and April 3, 2020. The exception is if you have an EIDL loan you are refinancing with your PPP loan. Once you have your average monthly payroll cost, multiply it by 2.5. Step 3: Divide the total amount from Step 2 by 12 months and put it in the Average Monthly Payroll box. For example, if you have two employees earning $120,000 over the year, subtract $40,000 from your payroll total. This step is required because the PPP sets a cap on salaries of $100,000 per employee. Step 2: Subtract any compensation paid to an employee in excess of $100,000. If you are including your net or gross income as reported on a Schedule C, use form 2483-C. Payroll costs include:Įmployee benefits including paid leave, allowance for separation or dismissal, and healthcare benefits including insurance premiums and retirement benefits Step 1: Add up the payroll costs for all employees whose principal place of residence is in the United States. Once you’ve chosen the time period you want to use, follow these steps: The one year period before the loan application Your average monthly payroll costs can be calculated using one of the following: Your loan amount calculation starts with finding your average monthly payroll costs. Contact informationįinally, provide the name, business phone, and email address of the primary contact for the application. Note that an SSN should only be provided if you do not have a business EIN or TIN. If you’re having trouble finding this info, follow the IRS’s steps to finding your EIN here. ![]() Your EIN (Employer Identification Number), TIN (Taxpayer Identification Number), or Social Security Number (SSN) is found on previous tax returns. Start by searching keywords of what you do or look up a similar business’s NAICS code. NAICS codes are self-assigned meaning you pick the code that best suits your business rather than having one assigned to you. You can find your NAICS code on a website like. This must be consistent with the documents you filed to make the business official. If you are not a self-employed individual or contractor, you will have to provide the year your business was established. Your Business Address is also found in these documents. A DBA or Tradename is what appears on bank statements or invoices if it’s different than your Business Legal Name. Your Business Legal Name is found on any government forms. You are required to provide both your Business Legal Name and your DBA or Tradename if applicable. For example, choosing “Sole Proprietor” is going to be better than “Self-Employed Individual”-as even though both could be correct, one conveys more information. Start by selecting the business structure that best represents your business. ![]()
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