To apply, you must have a business checking or small business savings account with Capital One as of February 15, 2020. If you haven't already applied, it says to log into your account, where you can request that the bank contact you.
A bank statement from an established small-business checking account can easily show that your company was in operation on Feb. 15, 2020, which you need to show to qualify for a PPP loan. If your business runs through your personal checking account, it's harder to prove, Alozie says.
Again, to keep things easy to track, avoid depositing your PPP loan funds into a personal account and avoid the temptation of using the funds to pay for personal expenses.
SBA recommends that small businesses never provide social security numbers, bank account information, or credit card numbers to anyone; and, never over the telephone.
Whether a PPP loan fraud case involves thousands, hundreds of thousands, or millions, defendants can receive prison sentences in these cases. If there is evidence of fraud, people can go to jail for a $20,000 PPP loan, just like someone whose PPP loan was $100,000 or $1 million.
If you have not filed your taxes, you will still need to fill out a Schedule C in order to qualify for the PPP.
We're unable to accept business transactions, including deposits and loans for business use. Any SBA or PPP loan will be rejected and sent back to the IRS.
The PPP limits compensation to an annualized salary of $100,000. For sole proprietors or independent contractors with no employees, the maximum possible PPP loan is therefore $20,833, and the entire amount is automatically eligible for forgiveness as owner compensation share.
While it is excluded from taxpayers' gross income, tax-exempt income resulting from PPP loan forgiveness nonetheless must be included in gross receipts for certain other purposes, which include the gross receipts test under Sec.
Self-employed farmers can apply for PPP loan funds based on their 2020 gross income. ... The Paycheck Protection Program (PPP) was created in the CARES Act in 2020 to provide forgivable loans to small businesses, including farms. Much has been made of the provisions that focus on payroll expenses.
You don't have to have an LLC designation or a registered business to qualify for PPP loans. Sole proprietors, freelancers, and independent contractors can apply for PPP funding.
Hunter VanPelt, 49, was sentenced to prison time for bank fraud related to the Paycheck Protection Program (PPP). Authorities say VanPelt submitted six false and fraudulent loan applications between April 27, 2020 and June 17, 2020 on behalf of companies that she owned or controlled, totaling more than $7.9 million.
A 30-year-old Texas man has been sentenced to 9 years and 2 months in prison for fraudulently acquiring more than $1.6 million in funds through the government's coronavirus pandemic Paycheck Protection Program [PPP], the Department of Justice said Monday.
Unlike other SBA loans, PPP loans are designed to be partially or fully forgivable, meaning you won't have to pay them back as long as you follow certain rules. ... Business owners could get their loans forgiven if they used at least 60% of the money to cover payroll costs.
PPP Money – Nearly All Gone: Only $8 billion remains available. Source: CBS News, April 6, 2021.
IMPORTANT UPDATE FOR 2021:
Congress approved an extension of the PPP loan program until June 30, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020. ... In late December 2020, Congress passed a bill approving a re-funding of the PPP and EIDL programs under the CARES Act.
You should transfer the eligible funds from the separate account to your operating/payroll account to assist you in tracking. ... It is much easier (and better for tracking) to transfer eligible funds from the new account to your operating/payroll account for payroll withdrawals.
U.S. Farm Producers Received Almost $6 Billion From the Paycheck Protection Program in 2020.
For example, PPP rules now allow farmers to receive two different PPP loans, what the program calls “first draw PPP loans” and “second draw PPP loans.” In addition, farmers can use gross income, not net profit, as the basis of a loan.
Yes. Borrowers can apply for both the PPP and EIDL, although funds from both cannot be used for the same purpose.
No. Loan proceeds received under the Paycheck Protection Program (PPP) are not taxable income, regardless if the loan was forgiven or not. Forgiven PPP loans are not considered cancellation of debt income, and as such, you should not report these loan proceeds on your tax return.
First Draw PPP Loan If You Have No Employees
(If you are using 2020 to calculate payroll costs and have not yet filed a 2020 return, fill it out and compute the value.) If this amount is over $100,000, reduce it to $100,000. If both your net profit and gross income are zero or less, you are not eligible for a PPP loan.