The Paycheck Protection Program (PPP) is part of the stimulus program signed into effect in early 2021 for the self-employed and small businesses in need of funding.
The gov’t just updated the eligibility requirements so that many more people can now claim it; the biggest change being that the PPP calculation is based on their gross income rather than their net income. More info on the updates in this news article.
The program is meant for anyone that has their own business, is self-employed, has done independent contracting, a side gig, Uber/delivery, freelancing, or any other kind of self-employed work. You don't need a corp, LLC, or business registration in order to apply as an individual. You will need formation documents if you're applying as a company.
You had to have reported the income on your tax return (Schedule C) & been in business since before February 15, 2020.
Those who qualify will get anywhere from $ 1K-$ 20K, depending on their income. If your startup has employees on payroll, you'd be able to claim more than $ 20K.
The PPP comes in the form of a “forgivable loan” – meaning it is 100% forgiven if you use at least 60% on payroll costs. You get to keep the full thing, that’s exactly what the government wants.
I’m a startup founder (and accountant). My co-founder & I were able to get about 20K. I've had the privilege of helping friends, family & clients get funded as well.
You can get more general info on the program through the SBA.gov website. I'd advise applying with a local bank – the best ones to work with are small ones in your state but there are other banks out-of-state that accept applications nationally. The big banks work pretty slowly so they're not ideal.
Thought it would be a good idea to come here & share this with an open community. The deadline to apply is coming up.
Has anyone else taken advantage of this?