{"id":4450,"date":"2021-02-15T12:00:00","date_gmt":"2021-02-15T17:00:00","guid":{"rendered":"https:\/\/teachingmillionaires.com\/?p=4450"},"modified":"2021-02-23T10:41:10","modified_gmt":"2021-02-23T15:41:10","slug":"is-there-a-second-round-of-ppp-loans","status":"publish","type":"post","link":"https:\/\/teachingmillionaires.com\/newstag\/is-there-a-second-round-of-ppp-loans\/","title":{"rendered":"Is There a Second Round of PPP Loans?"},"content":{"rendered":"\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Is There a Second Round of PPP Loans?\" width=\"720\" height=\"405\" src=\"https:\/\/www.youtube.com\/embed\/aru8-KFvNak?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Here are answers to some of the most frequently asked questions on teachingmillionaires.com such as \u201cIs There a Second Round of PPP Loans?\u201d<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong>How Do I Use PPP for Self Employed?<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/youtu.be\/LLvjRzufg2g\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/02\/Jessica.png\" alt=\"\" class=\"wp-image-4451\" width=\"1029\" height=\"242\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Jessica.png 948w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Jessica-300x71.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Jessica-768x181.png 768w\" sizes=\"(max-width: 1029px) 100vw, 1029px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Well, Jessica, the answer to your question is &#8220;No.&#8221;&nbsp; PPP funds are meant to be owner&#8217;s compensation for you as a sole proprietor.&nbsp; To be clear, it&#8217;s meant to pay you, so you cannot use the funds to directly pay contracted workers.&nbsp; <\/p>\n\n\n\n<p>This applies to anyone who files a Schedule C tax form. &nbsp;Essentially, if you got <a href=\"https:\/\/teachingmillionaires.com\/recommends\/correct-ppp-loan-amount-calculator\/\" target=\"_blank\" rel=\"noreferrer noopener\">the correct PPP loan amount<\/a>, then you pay yourself that money. &nbsp;I have an entire <a href=\"https:\/\/teachingmillionaires.com\/how-to-pay-yourself-ppp-loan-self-employed\/\">blog post on how to pay yourself PPP if you\u2019re self-employed<\/a>.<\/p>\n\n\n\n<p>The good news is you can do whatever you want with the funds after you pay yourself your owner\u2019s compensation. &nbsp;For example, you can then pay contractors, office bills, or even personal bills.&nbsp; However, you first need to \u201cpay yourself\u201d so that the PPP funds were used properly and can be forgiven.<\/p>\n\n\n\n<p>Is this somewhat of a formality?&nbsp; Yes, but I&#8217;m giving you the answer of how to think about it and how to use the funds the proper way.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Do You Need an LLC for a Business Credit Card?<\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/youtu.be\/KgI72B8IOD8\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/02\/Eric.png\" alt=\"\" class=\"wp-image-4452\" width=\"1027\" height=\"114\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Eric.png 978w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Eric-300x33.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Eric-768x86.png 768w\" sizes=\"(max-width: 1027px) 100vw, 1027px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>This next question is about my article on <a href=\"https:\/\/teachingmillionaires.com\/how-to-fill-out-a-business-credit-card-application-for-american-express\/\">How to Fill Out a Small Business Credit Card Application for American Express<\/a>.&nbsp; Yes, Eric, I got approved. &nbsp;In fact, lately I&#8217;ve been enthusiastically recommending the <a href=\"https:\/\/teachingmillionaires.com\/recommends\/amex-blue-business-plus\/\" target=\"_blank\" rel=\"noreferrer noopener\">AMEX Blue Business Plus<\/a> card to many sole proprietors.<\/p>\n\n\n\n<p>No, you don&#8217;t need an LLC or a special tax filing number such as an EIN. &nbsp;Rather, you apply using your name and social security number as your business information.<\/p>\n\n\n\n<p>Yes, they do a hard pull on your personal credit. &nbsp;However, business credit cards don&#8217;t report to the personal credit bureaus so long as you remain in good standing.&nbsp; AMEX requires good to excellent credit, so aim for at least 690 before applying.<\/p>\n\n\n\n<p>Currently, this card has a Welcome Offer with an introductory 0% APR on all purchases for the first 12 months.&nbsp; Here\u2019s a <a href=\"https:\/\/teachingmillionaires.com\/recommends\/amex-blue-business-plus\/\" target=\"_blank\" rel=\"noreferrer noopener\">link to apply if you want more information<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>How Does the EIDL Grant Affect PPP?<\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/youtu.be\/mALOoO0MZII\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/02\/JustBreath.png\" alt=\"\" class=\"wp-image-4453\" width=\"1029\" height=\"119\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/JustBreath.png 976w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/JustBreath-300x35.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/JustBreath-768x89.png 768w\" sizes=\"(max-width: 1029px) 100vw, 1029px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Yes, the latest guidance is that the EIDL grant is no longer deducted from your PPP loan forgiveness amount. &nbsp;This change allows you to get the EIDL grant and have your entire PPP loan amount forgiven.<\/p>\n\n\n\n<p>While there was a recent announcement that EIDL grants would be made available to those who missed out during 2020, the SBA is not processing these at this time.&nbsp; Hopefully, more guidance and funds will be made available in the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>Can You Apply for a PPP Loan with More Than One Lender?<\/strong><\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/youtu.be\/hrQUe9wEvPc\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/02\/Boanerge.png\" alt=\"\" class=\"wp-image-4454\" width=\"1020\" height=\"165\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Boanerge.png 954w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Boanerge-300x48.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Boanerge-768x124.png 768w\" sizes=\"(max-width: 1020px) 100vw, 1020px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>There are thousands of lenders available to help small businesses get PPP loans.&nbsp; Unfortunately, the SBA can be notoriously slow in terms of processing.&nbsp; As of this writing, many people are still waiting to receive their second draw PPP loan deposits.<\/p>\n\n\n\n<p>Yes, you can apply with a different lender the second time around.&nbsp; Many people were dissatisfied with the communication from their previous lenders, so the decision is 100% up to you.&nbsp; I partnered with <a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">Womply to help as many people as possible get approved<\/a>.<\/p>\n\n\n\n<p>My other suggestion is to reach out to your lender to start a dialogue about the status of your PPP application.&nbsp; Perhaps, you can email or call to help move things along too.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Can I Get Unemployment and PPP?<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/youtu.be\/4DVSNVRvrkk\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/02\/Hoa.png\" alt=\"\" class=\"wp-image-4455\" width=\"1038\" height=\"136\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Hoa-300x40.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/Hoa-768x102.png 768w\" sizes=\"(max-width: 1038px) 100vw, 1038px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>This has been a question on everyone\u2019s mind.&nbsp; No one wants to be caught double-dipping and then having to pay back PPP money or be accused of fraud.<\/p>\n\n\n\n<p>Unemployment is considered taxable income. &nbsp;This means it will be claimed on your taxes and includes both the money you received from your state\u2019s unemployment office as well as any extra federal payments.<\/p>\n\n\n\n<p>Yes, you can get both.&nbsp; However, the guidance is not to use the funds at the same time for the same purpose.<\/p>\n\n\n\n<p>To be clear, PPP for the self-employed is considered owner\u2019s compensation.&nbsp; Even though PPP funds are not considered taxable income, you should not collect unemployment while also paying yourself PPP.<\/p>\n\n\n\n<p>It\u2019s best to decide when to use your PPP funds over the 24-week covered period.&nbsp; During those weeks, it\u2019s prudent not to collect unemployment.&nbsp; &nbsp;Remember, the guidance is not to use the same funds for the same purpose at the same time.<\/p>\n\n\n\n<p>You may then collect unemployment when you are no longer paying yourself PPP funds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Can I Get Both Rounds of PPP Loans?<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<p>Yes, you can.&nbsp; The <a href=\"https:\/\/teachingmillionaires.com\/where-can-i-apply-for-second-round-of-ppp\/\">second draw PPP was introduced early 2021<\/a> so businesses could get additional funding.&nbsp; However, you may also apply if this is your first time getting a PPP loan.<\/p>\n\n\n\n<p>To be clear, this second round is open both to first time applicants and those requesting a second PPP loan.<\/p>\n\n\n\n<p>Eligibility for a second round of PPP funding is dependent upon showing a 25% reduction in gross revenue when comparing 2020 to 2019.&nbsp; You can use any calendar quarter of 2020 or annual gross receipts for 2020.&nbsp; There is also specific documentation you will need to provide that <a href=\"https:\/\/teachingmillionaires.com\/where-can-i-apply-for-second-round-of-ppp\/\" target=\"_blank\" rel=\"noreferrer noopener\">I go into more detail about in my other post about PPP 2<\/a>.<\/p>\n\n\n\n<p>The SBA released <a href=\"https:\/\/www.sba.gov\/sites\/default\/files\/2021-01\/Second%20Draw%20PPP%20Loans%20--%20How%20to%20Calculate%20Revenue%20Reduction%20and%20Maximum%20Loan%20Amounts%20%281.19.2021%29-508.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">helpful guidance addressing calculations and documentation for Second Draw PPP Loans<\/a>.&nbsp; I anticipate even more guidance after the initial wave of applications are approved.<\/p>\n\n\n\n<p>Please don\u2019t hesitate to ask questions below in the comments.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Listen to Teacher Entrepreneurs Podcast<\/strong><\/h2>\n\n\n\n<p><\/p>\n\n\n\n<iframe style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/17939939\/height\/90\/theme\/custom\/thumbnail\/no\/direction\/backward\/render-playlist\/no\/custom-color\/DAA520\/\" height=\"90\" width=\"100%\" scrolling=\"no\" allowfullscreen=\"\" webkitallowfullscreen=\"\" mozallowfullscreen=\"\" oallowfullscreen=\"\" msallowfullscreen=\"\"><\/iframe>\n\n\n\n<p><\/p>\n\n\n\n<p>As always, I&#8217;m Rich and until next time.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-small-font-size\"><em>\u201cteachingmillionaires.com has partnered with <a href=\"https:\/\/teachingmillionaires.com\/recommends\/cardratings-blog-disclosure\/\" target=\"_blank\" rel=\"noreferrer noopener\">CardRatings<\/a> for our coverage of credit card products. <em>teachingmillionaires.com<\/em> and CardRatings may receive a commission from card issuers. Opinions, reviews, analyses &amp; recommendations are the author\u2019s alone, and have not been reviewed, endorsed or approved by any of these entities. <em>Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser&#8217;s responsibility to ensure all posts and\/or questions are answered<\/em>. I am not a financial advisor. The information I share is for educational purposes only and shouldn\u2019t be considered as certified financial or legal advice. It is imperative you conduct your own research. I am sharing my opinion only.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here are answers to some of the most frequently asked questions on teachingmillionaires.com such as \u201cIs There a Second Round of PPP Loans?\u201d How Do I Use PPP for Self Employed? Well, Jessica, the answer to your question is &#8220;No.&#8221;&nbsp; PPP funds are meant to be owner&#8217;s compensation for you as a sole proprietor.&nbsp; To&#8230;<\/p>\n","protected":false},"author":3,"featured_media":4457,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[14,1],"tags":[],"class_list":["post-4450","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stimulus-money","category-all-posts"],"featured_image_src_large":["https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/02\/PPP-2-FAQs-1024x576.jpg",1024,576,true],"author_info":{"display_name":"Rich Smith","author_link":"https:\/\/teachingmillionaires.com\/newstag\/author\/rich\/"},"comment_info":3,"category_info":[{"term_id":14,"name":"Stimulus Money","slug":"stimulus-money","term_group":0,"term_taxonomy_id":14,"taxonomy":"category","description":"","parent":0,"count":13,"filter":"raw","cat_ID":14,"category_count":13,"category_description":"","cat_name":"Stimulus Money","category_nicename":"stimulus-money","category_parent":0},{"term_id":1,"name":"All Posts","slug":"all-posts","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":33,"filter":"raw","cat_ID":1,"category_count":33,"category_description":"","cat_name":"All Posts","category_nicename":"all-posts","category_parent":0}],"tag_info":false,"taxonomy_info":{"category":[{"value":14,"label":"Stimulus Money"},{"value":1,"label":"All Posts"}]},"_links":{"self":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts\/4450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/comments?post=4450"}],"version-history":[{"count":0,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts\/4450\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/media\/4457"}],"wp:attachment":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/media?parent=4450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/categories?post=4450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/tags?post=4450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}