{"id":4543,"date":"2021-03-01T12:00:00","date_gmt":"2021-03-01T17:00:00","guid":{"rendered":"https:\/\/teachingmillionaires.com\/?p=4543"},"modified":"2021-03-16T16:54:06","modified_gmt":"2021-03-16T21:54:06","slug":"ppp-loan-based-on-gross-income-for-self-employed","status":"publish","type":"post","link":"https:\/\/teachingmillionaires.com\/newstag\/ppp-loan-based-on-gross-income-for-self-employed\/","title":{"rendered":"PPP Loan Based on Gross Income for Self Employed"},"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=\"PPP Loan Based on Gross Income for SELF EMPLOYED\" width=\"720\" height=\"405\" src=\"https:\/\/www.youtube.com\/embed\/Q3vsJ9TkGsU?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&#8217;s a breakdown of how PPP Loan Based on Gross Income for Self Employed who file a Schedule C.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong><strong>What are the New Changes to the PPP Loan?<\/strong><\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p>On Wednesday, February 24, 2021, the White House released changes to the PPP guidelines.&nbsp; Keep in mind, this is a forgivable loan from the federal government aimed at helping small businesses \u2026 it does not need to be paid back when used properly. &nbsp;The self-employed, gig workers, and anyone who files a Schedule C tax form can apply.<\/p>\n\n\n\n<p>The SBA is revising the formula used to calculate your maximum PPP loan amount.&nbsp; Previously, you had to use net income from Line 31 on your Schedule C.&nbsp; However, gross income from Line 7 will now be used to calculate PPP loan amounts.<\/p>\n\n\n\n<p>This is a major change because gross income means all the money you&#8217;ve earned before taking tax deductions.&nbsp; Many can expect higher PPP loan amounts.&nbsp; I\u2019ve created a new <a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-gross-income-calculator\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">Gross Income PPP Loan Amount Calculator<\/a> to help you determine the amount you can expect.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-gross-income-calculator\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/03\/SBA-Gross-Income-Change-1024x597.png\" alt=\"PPP Loan Based on Gross Income for Self Employed from SBA\" class=\"wp-image-4546\" width=\"855\" height=\"498\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SBA-Gross-Income-Change-1024x597.png 1024w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SBA-Gross-Income-Change-300x175.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SBA-Gross-Income-Change-768x448.png 768w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SBA-Gross-Income-Change.jpg 1311w\" sizes=\"(max-width: 855px) 100vw, 855px\" \/><\/a><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Are PPP Funds Still Available?<\/strong><\/h2>\n\n\n\n<p>I encourage small business owners who might be thinking this doesn\u2019t apply to you\u2014housecleaners, <a aria-label=\" (opens in a new tab)\" href=\"https:\/\/teachingmillionaires.com\/recommends\/rich-uber-eats\/\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"rank-math-link\">Uber<\/a> and <a aria-label=\" (opens in a new tab)\" href=\"https:\/\/teachingmillionaires.com\/recommends\/doordash\/\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"rank-math-link\">DoorDash<\/a> drivers, artists, actors, and <a aria-label=\" (opens in a new tab)\" href=\"https:\/\/youtu.be\/yaE2GAFF_To\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"rank-math-link\">anyone with a side hustle<\/a>\u2014consider applying because these funds are there to help you.<\/p>\n\n\n\n<p>Remember, when used properly this money does not need to be paid back.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong>What are the New Guidelines for the PPP Loan Based on Gross Income for Self Employed?<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p>There is a dedicated period for small business owners to apply who have less than 20 employees. &nbsp;The SBA will exclusively process these types of applications for 14 consecutive calendar days.&nbsp; The two-week window started on February 24, 2021 and goes until March 9, 2021.&nbsp;<\/p>\n\n\n\n<p>The pool of acceptable applicants has grown as well.&nbsp; For example, if you have a felony conviction not related to fraud, then you can apply for a PPP loan.&nbsp; Also, those who are not U.S. citizens but have a valid ITIN Individual Taxpayer Identification Number can apply too.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img decoding=\"async\" width=\"907\" height=\"643\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/03\/SBA-ITIN-Change.jpg\" alt=\"PPP Loan Based on Gross Income for Self Employed Available to Many\" class=\"wp-image-4547\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SBA-ITIN-Change.jpg 907w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SBA-ITIN-Change-300x213.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SBA-ITIN-Change-768x544.png 768w\" sizes=\"(max-width: 907px) 100vw, 907px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong><strong>Are PPP Funds Still Available Today?<\/strong><\/strong><\/strong><\/h2>\n\n\n\n<p>As of February 21, 2021, more than half or $143 billion is still available for this round of PPP funding.&nbsp; If you are thinking about applying, I recommend getting your documentation ready.&nbsp; A PDF file of your 2019 tax documents will be necessary.<\/p>\n\n\n\n<p>You need to apply through a SBA-approved lender.&nbsp; You can contact your local community bank to see if they\u2019re accepting applications.&nbsp; I\u2019ve partnered with Womply\u2014a software company who is trying to fast track PPP applications.<\/p>\n\n\n\n<p><a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-2\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">Womply\u2019s newest portal automates the PPP loan application process<\/a>, specifically for people who\u2019ve never received a PPP loan.&nbsp; This includes e-signing your promissory notes, applying for a second draw, and seeking forgiveness.&nbsp; Yes, it is possible to still get two rounds of PPP funding even if you\u2019ve never applied before.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-2\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" width=\"749\" height=\"717\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/03\/Womply-PPP-Landing-Page.png\" alt=\"PPP Loan Based on Gross Income for Self Employed Womply\" class=\"wp-image-4548\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/Womply-PPP-Landing-Page.png 749w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/Womply-PPP-Landing-Page-300x287.png 300w\" sizes=\"(max-width: 749px) 100vw, 749px\" \/><\/a><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><strong>When Will the New Guidelines for the PPP Loan Change?<\/strong><\/strong><\/h2>\n\n\n\n<p>The SBA works slower than we want.&nbsp; They&#8217;re trying to process loans while also making sure people aren&#8217;t committing fraud.&nbsp; Right now, the SBA is stalled on the gross income rules and new application.<\/p>\n\n\n\n<p>We\u2019re also getting mixed messages about those who\u2019ve already applied for PPP loans.&nbsp; Will they be able to reapply and get the larger gross loan amount?&nbsp; Some are <a href=\"https:\/\/www.nytimes.com\/2021\/02\/22\/business\/smallbusiness\/paycheck-protection-program-small-business-biden.html\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">saying no<\/a>.&nbsp; However, <a href=\"https:\/\/www.journalofaccountancy.com\/news\/2021\/jan\/ppp-first-draw-loan-increases-reapplications.html\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">the SBA allowed farmers to adjust their loan amounts using gross income<\/a>.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/03\/Farmers-Adjusting-Gross-1.jpg\" alt=\"PPP Loan Based on Gross Income for Self Employed Farmers and Ranchers\" class=\"wp-image-4552\" width=\"929\" height=\"509\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/Farmers-Adjusting-Gross-1.jpg 975w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/Farmers-Adjusting-Gross-1-300x164.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/Farmers-Adjusting-Gross-1-768x421.png 768w\" sizes=\"(max-width: 929px) 100vw, 929px\" \/><\/figure><\/div>\n\n\n\n<p>Still, over 40 million small businesses with zero employees have not yet applied for their first PPP loan.&nbsp; With these new rules, you could get anywhere from a few thousand dollars up to $20,833\u2014twice.<\/p>\n\n\n\n<p>Those of you who\u2019ve never applied before can use <a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-2\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">Womply\u2019s PPP Fast Lane application<\/a> to help get both rounds of funding.&nbsp; It is using the newest gross income rules.&nbsp; Be sure to gather your 2019 Schedule C in PDF form, and you can also use my <a href=\"https:\/\/teachingmillionaires.com\/recommends\/ppp-gross-income-calculator\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">loan amount calculator<\/a> to help you get an idea of how much you can expect.<\/p>\n\n\n\n<p>My second recommendation is to open a brand-new free bank account to help separate your personal\/business transactions from this PPP money.&nbsp; <a href=\"https:\/\/teachingmillionaires.com\/recommends\/sofi-bank-account\/\" target=\"_blank\" aria-label=\" (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">SoFi Bank gives you $50 free<\/a> when you open an account.&nbsp; While this is not a necessity, I want you to keep PPP funds separate and&nbsp; have crystal clear documentation.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large is-resized\"><a href=\"https:\/\/teachingmillionaires.com\/recommends\/sofi-bank-account\/\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" src=\"https:\/\/teachingmillionaires.com\/wp-content\/uploads\/2021\/03\/SoFi-1024x489.png\" alt=\"PPP Loan Based on Gross Income for Self Employed SoFi Money\" class=\"wp-image-4550\" width=\"885\" height=\"422\" srcset=\"https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SoFi-1024x489.png 1024w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SoFi-300x143.png 300w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SoFi-768x366.png 768w, https:\/\/teachingmillionaires.com\/newstag\/wp-content\/uploads\/2021\/03\/SoFi.png 1469w\" sizes=\"(max-width: 885px) 100vw, 885px\" \/><\/a><\/figure><\/div>\n\n\n\n<p>Once approved, you can expect the funds be deposited after 10 days or so.&nbsp; I have other articles on <a href=\"https:\/\/teachingmillionaires.com\/how-to-pay-yourself-ppp-loan-self-employed\/\">how to \u201cpay yourself\u201d these funds as owner\u2019s compensation<\/a>, and I promise to update this post and make YouTube videos as soon as these changes are in place.<\/p>\n\n\n\n<p>Those of you who already applied for First Draw PPP and\/or Second Draw PPP, I am hopeful that the SBA will allow lenders to let you request more money using gross income. \u00a0<a href=\"https:\/\/teachingmillionaires.com\/recommends\/rich-newsletter\/\">You can sign-up for my newsletter<\/a>, and I\u2019ll send out an email as soon as we know more.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Listen to Teacher Entrepreneurs Podcast<\/strong><\/h3>\n\n\n\n<iframe style=\"border: none\" src=\"\/\/html5-player.libsyn.com\/embed\/episode\/id\/18069467\/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&#8217;s a breakdown of how PPP Loan Based on Gross Income for Self Employed who file a Schedule C. What are the New Changes to the PPP Loan? On Wednesday, February 24, 2021, the White House released changes to the PPP guidelines.&nbsp; Keep in mind, this is a forgivable loan from the federal government aimed&#8230;<\/p>\n","protected":false},"author":3,"featured_media":4545,"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-4543","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\/03\/PPP-Gross-Income-1024x576.jpg",1024,576,true],"author_info":{"display_name":"Rich Smith","author_link":"https:\/\/teachingmillionaires.com\/newstag\/author\/rich\/"},"comment_info":9,"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\/4543","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=4543"}],"version-history":[{"count":0,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/posts\/4543\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/media\/4545"}],"wp:attachment":[{"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/media?parent=4543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/categories?post=4543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teachingmillionaires.com\/newstag\/wp-json\/wp\/v2\/tags?post=4543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}