Comments on: PPP Loan Amount Increases

By: Stephen Nelson CPA

Stephen Nelson CPA — Wed, 30 Dec 2020 22:01:18 +0000

Sounds like you may have been short-changed first go-around and so be eligible for a “bump” in the amount… you should therefore “redo” the PPP application, carefully following the instructions, and see if the loan should have been higher. If that’s case, gosh, go for a PPP loan amount increase. Absolutely. BTW pay particularly close attention to the seasonal employer alternative calculations. Those may greatly help you.

Also, I think you should also work througn a PPP loan forgiveness application by hand and use the 24 week covered period. I bet you’ll find that that big, nearly six month window, lets you accumulate enough spending.

By: Dawn Buell

Dawn Buell — Wed, 30 Dec 2020 21:38:29 +0000

I was in the first wave of borrowers, but run a seasonal business and my amount would have been substantially higher if I had been able to calculate it based on the payroll I incur during the high points of our business. Do I qualify to reapply? And if so, how long do I have to use the extra funds up? I’m in the off-season now, so it would be super beneficial to be able to use extra funds, say, next March and going forward from there. Is there a deadline as to when I can reapply for an increased loan amount? Thanks for your help!

By: Morgan

Morgan — Sat, 26 Dec 2020 01:22:58 +0000

I’d love to see you do an article for the self-employed sick leave credit. It’s hard to get good information on it because it’s a bit of a niche but I know a couple of people who could qualify theoretically… if only we could find good information on it.

By: Rachel

Rachel — Tue, 22 Dec 2020 14:35:07 +0000

I formed a new LLC in 2019 (thanks to your excellent operating agreement template) but didn’t open for business until January 1, 2020. My husband is my only employee, and he only works for me part-time. Neither of us has any outside employment. I had the bright idea that I could simplify things by paying us once each year at the end of the year. In hindsight, that wasn’t the best plan. When the first version of the PPP came out, I didn’t have any payroll costs yet, so it didn’t seem like I was eligible for the program. I applied for the $10,000 SBA loan but declined the money when told I was only eligible for $1,000. My state also has a COVID relief program for women-owned businesses, but my business is too new to qualify for it.

Do you know if the newest version of the PPP program has money for small businesses that have not participated in earlier iterations of the program? Should I continue to assume that I’m not eligible? Thanks!

By: How Taxes Work for PPP Loans – Nelson CPA

How Taxes Work for PPP Loans – Nelson CPA — Tue, 22 Dec 2020 14:12:21 +0000

[…] Second Draw Loans describes how especially hard hit small businesses can get a second PPP loan. PPP Loan Amount Increases describes how you may be able to go back and get more money if you were short-changed by the bank […]

By: Stephen Nelson CPA

Stephen Nelson CPA — Fri, 04 Sep 2020 16:35:41 +0000

In reply to John Daniels. Yeah, you want your 2019 tax return done. That'll help. And a benefit of you filing later-ish is you can probably legitimately do things that bump your profits. For example, you can choose to not use Section 179 depreciation and not use bonus depreciation.

By: John Daniels

John Daniels — Thu, 03 Sep 2020 23:23:11 +0000

We have not received our 2019 Tax Return ? So this would be very Helpful.

By: Sole Proprietorship PPP Loan Applications - Evergreen Small Business

Sole Proprietorship PPP Loan Applications - Evergreen Small Business — Wed, 02 Sep 2020 22:11:16 +0000

[…] get a second draw PPP loan. That will use up money fast. And it will also allow some earlier PPP borrowers to increase their earlier PPP loan balance. That will use up money […]

By: Stephen Nelson CPA

Stephen Nelson CPA — Mon, 31 Aug 2020 15:16:10 +0000
In reply to Chuck Strand. Good points, Chuck. Good points...

By: Stephen Nelson CPA

Stephen Nelson CPA — Mon, 31 Aug 2020 15:14:54 +0000
In reply to alex. No.sorry, rentals don't create payroll for the owner.