Wait to Apply for the PPP?
Yes, for now.
New changes in the Paycheck Protection Program (PPP) mean that providers who wait to apply for the PPP until next week will get more money.
Under the current PPP rules, providers are eligible to get PPP money based on their net income (profit) on their 2019 or 2020 Schedule C , line 31 (for the self-employed). Under the new rules, providers can use their gross income on Schedule C, line 7. Since a provider's gross income will be much larger than their net income, this will mean they will receive a lot more from the PPP.
Therefore, wait to apply for the PPP under the new rules that go into effect starting the week of March 1st. We are waiting for guidance from the Small Business Administration (SBA) for details on a new application form. Unfortunately, if you have already applied for the PPP before March 1st, it looks like you cannot take advantage of this new rule.
The new rules state that only businesses with fewer than 20 employees can apply for the PPP through March 10th. This includes all family child care providers. This should clear the way to make it easier for providers to apply.
The new rules allow providers who are delinquent on their student loans to apply. Providers who only have an ITIN (Individual Taxpayer Identification Number) can now apply as well.
If you did receive PPP money, either from the First Draw PPP or the Second Draw PPP, can you reapply to get additional money? We don't know.
That's all the details we know so far about these new rules. I'm waiting to receive further guidance from the SBA for further clarifications. I'll write about it when we know more information.
To apply for the PPP, contact your local bank or online lender such as PayPal, OnDeck, Kabbage, Biz2Credit, Intuit.
Here's the statement released by the White House announcing these new rules.
Tom Copeland - www.tomcopelandblog.com
Image credit: Small Business Administration
