Brunch & Budget

b&b226: PPP loans Q&A with Fiverr (106 questions answered!)

June 04, 2020 Brunch & Budget Season 1
Brunch & Budget
b&b226: PPP loans Q&A with Fiverr (106 questions answered!)
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Brunch & Budget
b&b226: PPP loans Q&A with Fiverr (106 questions answered!)
Jun 04, 2020 Season 1
Brunch & Budget

This episode is ALL things PPP loan!  We answered 106 questions.  We also touch on EIDL loans.  

Show Notes Transcript

This episode is ALL things PPP loan!  We answered 106 questions.  We also touch on EIDL loans.  

Dyalekt :

Just like hot potatoes and hotcakes, Justice is best served on a hot plate. Welcome to brunch and budget the show about personal finance and racial economic inclusion with your host, Pamela Capalad, Certified Financial Planner and Accredited Financial Counselor here to take the bite out of your budget. Brunch and budget is part of the Race and Wealth network. I'm your sound provider, Dyalekt and here's your host, Pamela Capalad.

Pamela Capalad, CFP, AFC :

Hello, everybody. Thank you for tuning in. We are today actually airing a workshop that we did with Fiverr on the paycheck Protection Program loans in particular.

Dyalekt :

Also, don't take my intros as gospel. I just be inserting different things that has "hot" infront of them. If you're serving hot potatoes like you should probably have that foil or something like on the stove just put on a hot plate. I think that's a good idea. I'm just saying you know you'll want bad financial advice. You don't want bad food info advice.

Pamela Capalad, CFP, AFC :

I feel that, I feel that, Dyalekt, it's true. But I hope You're eating some potatoes while you listen to this PPP loan episode because it is a doozy. We partnered with Fiverr to do this workshop. We ended up answering 106 questions as you'll hear at the end. But hopefully this gives you a good precursor on how to think about PPP loans how to apply. There's still money left, there's still 140 billion dollars left as of the end of May. So the loans have been smaller freelancers can apply. You'll hear a lot more information in the workshop, and we hope you get a lot out of it. Thank you.

Marcy from Fiverr :

Perfect. So if you're just now joining us, welcome to the Fiverr community. If you could please put your city that you're joining from in the chat as well as your favorite quarantine snap. We're going to get started in about 60 seconds. We're just going to give everybody a few more seconds to join Los Angeles. Welcome Ben. Utah. Darlene perfect San Diego are coming from all over there. Yes, this is awesome. Also, my name is Marcy I lead community programs at fire. We're so excited to have you if you're just joining as I mentioned before, usually we have events all over the world in person. But right now we're obviously doing everything online, which has actually been really fun. And we're so excited to have everyone from all over the country here together. So that's that's been really special. Ted drumstick ice cream. I like your style. That's, that's amazing. Also, just a quick note, I know it says on the slide too. But if you're using the chat, go ahead and turn your setting to everyone instead of all panelists, because that way, we can all see your questions, we can see your comments and make sure that everybody on the call can see that. So that would be perfect. I think when you do that, it'll be right next to the two and then the colon and you can use that drop down to choose whether you send it to all panelists or attendees and panelists. Perfect. Okay, Pam, should we get started?

Pamela Capalad, CFP, AFC :

Yeah, leg's do it.

Marcy from Fiverr :

Awesome. Okay. So again, thank you everyone so much for coming. My name is Marcy, I lead community programs at Fiverr. We're so excited to see over 100 of you on the call so far, amazing. We are talking about PPP loans today, as you all know, and I know this is a super important topic right now. So we're so excited to have Pam and Dyalekt, and they're adorable baby Isigani on the call with us today. If you don't know about Fiverr, also, we're a freelance marketplace that connects freelancers to buyers. So anything from voiceovers to accounting to gaming to architecture to fashion, and really anything you can imagine that you can do online, it's probably on Fiverr. So check it out if you haven't already. And without further ado, I'm going to go ahead and turn it over to Pam. Thank you so much for being here.

Pamela Capalad, CFP, AFC :

Yeah, thank you for having us. We are so excited! We love Fiverr. Yeah, we love y'all.

Dyalekt :

First I'm rockin with Fiverr in a minute.

Pamela Capalad, CFP, AFC :

Alright, so PPP loans, everyone. Here we go. It's gonna be wild. Let's do this. No, for real. And I will say right now, nobody is an expert in this. We have seen a lot of things.

Dyalekt :

Everything is a moving target right now. Let's be real. So Actually if you have more up to date information on something we do, please throw those things in chat. It's all going to be constantly moving, shifting and changing. So one thing that we're going to have to remember is to stay resilient. That's something that we talk about a lot and it's not just financial literacy or financial capability financial resilience because stuff happens so we got to figure out to keep moving.

Pamela Capalad, CFP, AFC :

Yeah, exactly. So before we get started with disclaimer, I'm a Registered Investment Advisor and what that means is please do not consume anything that we tell you today is financial advice. Everything today is for educational purposes only. Financial advice is very personalized and very one on one. We need to know way more about your situation to be able to give one on one advice that you can apply immediately. But we do hope that you get today is a lot of strategies and a lot of tips that you feel like make sense to apply to whatever your situation is. And please this is not a save your questions till the end kind of presentation. There is a little q&a option I believe in your zoom window somewhere. I don't know if you know exactly where but in your zoom window. We are going to take questions as they come so please feel free to put stuff in the q&a, please feel free to leave comments in the chat. And we'll answer them and address them as we go. We may just say, Hey, we're going to get to that. And we'll address it at the time. But we do want to see all of your questions. We'll try to answer all

Dyalekt :

About the fine print. Now I don't find printed usually there to play you. But you can read it now and you can take it with you because you'll be sent the slides by saying that we send the slide ask questions all throughout this sometimes the questions are going to be answered with it depends. And it depends on your personal situation. The reason we have this fine print here is we don't know enough about your personal financial situation to give you accurate advice why this remains as education.

Pamela Capalad, CFP, AFC :

Yeah, and let's address there's a couple of the EIDL comments. Yes, so we do have updates on that we will dive into PPP, but the EILD, please look out for an email from SBA that says whether or not you have an offer for a loan. So with the EIDL the thing about that is they have not given any guidance or information on when things are coming out, but I personally got an email about it. We have clients who've gotten emails about it as well. So look out for that in your email. We had kinds of stuff that email ended up in their junk folder, so just looking out for that email. It's from the SBA, SBA something something at the top. So yeah, that's the ideal update. Yep. Love it.

Dyalekt :

Okay, instead of the eight timeframe for loan forgiveness, can we spend the money in a four week timeframe?

Pamela Capalad, CFP, AFC :

So the thing is yes-ish. And we'll go through that in terms of the forgiveness. So if you're depending on what your business structure status is really what's going to make the difference on that. So leave that question open. We'll get to that.

Dyalekt :

Okay. Yeah, let's go. Let's go through again, we'll be sending you guys the slides. And we'll get into those in a second.

Pamela Capalad, CFP, AFC :

Yes. And if you're asking questions in the chat, we're actually looking at the q&a section for questions. If you could repost them in the q&a section, then we will absolutely answer them that way.

Dyalekt :

Yeah, that'll make it much easier for us to check them out. Thank you.

Pamela Capalad, CFP, AFC :

All right. So as we mentioned, it's a little wild right now. And I think that with COVID, this slide is more relevant than ever. We start every workshop that we do with this slide, and you're going to experience this with PPP loans you may already have and the thing is Legislation came out they said this was going to happen and banks have their own idea about what will actually happen. So the reality is PPP loans have been on their own really wild journey. If this is confusing to you, it's confusing to all of us and please ask again all of your questions and we will be here for you.

Dyalekt :

Yeah, I know there's gonna be a lot of questions about what my EIDL, what's up with my loans, and PPP and can I file for unemployment? We're going to talk about all of that and it's all going to be kind of messy, continuously shifting targets.

Pamela Capalad, CFP, AFC :

Alright, so we mentioned who we were. I'm Pam Capalad. I'm a Certified Financial Planner. I'm Accredited Financial Counselor. I'm the founder of brunch and budget which is a financial planning firm where we used to have a meal and talk about your finances. We are doing 'Pay what you can" virtual branches right now. So if you do have those one on one questions, and you want to ask a financial planner, were able for you

Dyalekt :

Yeah, my name is Dyalect. I am a lifetime creative, professional freelancer, and I'm the director of pedagogy of pockets changing hip hop and finance organization for youth. I probably should also mention we host a podcast called brunch and budget. I'm not saying that to be too promoty, but a number of the things that we talk about, we have deep dives on our podcast. So refer to that if you want to get deeper into some of the subjects we bring up. Yes,

Pamela Capalad, CFP, AFC :

Absolutely. And we'll share a link at the end, too. So the agenda that we're going to talk about today is we're going to do a detailed overview of the PPP loans, and in particular, how to apply based on your business entity. So I know there was a question about whether you needed to be an LLC to do that. And the answer is no, you don't have to, luckily. What application and paperwork was required. So we'll show you what the paperwork looks like and what the application looks like in the paperwork. What banks are currently taking applications and then how to choose between PPP and unemployment. And then if we have time, we may even address the EIDL stuff, because that literally just happened this week. Again, all of this stuff is a moving target. So we also have resources that we've been putting together at brunch and budget. These are the links here.

Dyalekt :

These are free resources accessible to everyone. Yes,

Pamela Capalad, CFP, AFC :

We've been keeping track of all of the COVID updates here and then we actually have a comparison chart of EIDL versus PPP. So if you did apply for the EIDL then all of the information is in the as well. So hopefully that answers a lot of your EIDL questions. All right, and then we won't have time to go over this but we will be sending you the slides. So these are the highlights for the stimulus package. And the thing we're really gonna focus on today is the PPP loans and freelancers are also eligible for this. So again, you don't have to have an LLC

Dyalekt :

if you have anything that you're concerned about. refer back to that yes.

Pamela Capalad, CFP, AFC :

Yeah, so we'd love to hear from you in the chat Have you applied for PPP were you approved or rejected? And if rejected what reason did the bank give? Oh good approval from Wells Fargo that's great love it Let's see and then I'm gonna start actually rejected oh yeah yeah never anything from Bank Yeah, we've heard that a lot. I was I was rejected the first round too. Yeah apply to received it oh center state bank. We've actually we have some banks that we know have are issuing PPP now. Yes, yay, people are getting approved. That's awesome. If you haven't applied yet, there's still time. I'm expecting PPP money to be deposited. Once you get approved the deposit happens super fast. It's great. Awesome. I love to apply with PayPal. rejected. Yep, yep. So the tricky part with this and we're gonna go into this in a little bit.

Dyalekt :

Real quick, uh, just seeing a couple more questions that are in chat if you could throw those in the q&a that make life easier for us make sure we can get to them.

Pamela Capalad, CFP, AFC :

Yes. All right. Love it. Okay, cool. This is good. received the money in a week. I love it. That's great. Yeah. Awesome. So keep sharing. We did want to share a little bit of the drama around PPP loans. PPP loans, the first round ran out in less than two weeks. A lot of banks have been rejecting customers. This bottom one here with Wells Fargo was a notice that we actually got we applied for PPP through Wells Fargo on the day that could be open and they basically emailed us and said go somewhere else. We're probably not going to give it to you even though we've been customers for 12 years. Yeah. And then the other drama is really the major food and hotel chains getting money Shake Shack getting money, the LA Lakers getting money. This is why the money ran out so fast. JPMorgan Chase were the biggest culprits of this. They basically handpick clients to set up PPP loans for them in the first round.

Dyalekt :

They reached out to the folks who were big companies who had the money, and they're like, we'll give you stuff that you don't even really need. I mean, really four and a half million to the Lakers. They can't even get you a good player on the Lakers.

Pamela Capalad, CFP, AFC :

Yeah. So luckily, there's a second round and the money isn't running out as fast. So we're gonna go into the details and eligibility. So what we'll do is we'll go into the details of eligibility. And I see there's a lot of open questions. So we'll go through this part, and then we'll answer some questions.

Dyalekt :

Big robust questions. Yes.

Pamela Capalad, CFP, AFC :

So the details, you can apply through 630 or until the money runs out in the second round. Any small business with 500 employees, including independent contractors and self employed people sole proprietorships, you don't have to have a business entity, you just have to have 1099 income. So that's the main thing. So where you can apply you can technically apply at any bank, that's SBA approved lender, So we have found most banks have been requiring you to be an existing customer. We do have a small list of banks that we know are not requiring you to be an existing customer. And if that's the case, then I would definitely um, if if you know of any business Also that are not requiring you to be an existing customer. Please share that with us in the chat. ,

Dyalekt :

Yes share that in chat if you know any banks that are allowing people who aren't existing customers, yes.

Pamela Capalad, CFP, AFC :

So there's no collateral required but is subject to whatever the bank decides they want to approve you for. What you can use it for? So this is the big thing. This is how to get the money forgiven. Payroll and other wages. So if you're a freelancer, we'll talk about what that looks like. Health insurance premiums, mortgage interest or rent including home office rent, utilities, interest on any other debts and obligations and then disability workers comp, things like that. The max you can borrow is two and a half times average payroll so the max of 100 k per employee. So if you're a solo entrepreneur, or a freelancer, then the max you can borrow is two and a half times of the max you can borrow is around $20,000. The forgiveness amount will be up to eight weeks of payroll plus 25% for non payroll costs, or all of it can go to payroll if that's the case. The loan term is for the amount not forgiven, 1% interest over two years. So if for instance, you have a $20,000 loan and $15,000 forgiven the rest of the $5,000, that's left, you only have to pay 1% interest over and you have two years to pay that money back. So it's still a great loan product ultimately. And then the documents needed really depend on the bank. For the self employed person or freelancer, if you're a sole proprietor, so LLC would use 1090 nines of tax returns instead of payroll forms and p&l. So what most banks are asking for is payroll forms those 941 and 940 forms and profit and loss statement. If you're an S corp, most banks will actually only approve your application if you've run payroll through the S Corp. And the amount you can apply for is based on how much ran through payroll. So that's the tricky thing, if you have an S corp structure is I have seen one situation where a client was able to get it without having payroll run, but they had a really good relationship with their local bank to do that. And then to calculate the loan amount, all you have to do is take the 2019 tax return on Schedule so see line 31 divided by 12 and multiply by two and a half. So if your net income after expenses is $60,000, then the maximum amount you can get is $12,500. And then you add rent mortgage business and utilities and health insurance premiums on top of that. So you're allowed to take a loan out for the actual payroll amount as a self employed person plus if you pay for health insurance premiums out of pocket and utilities like cell phone, cable, electricity, all of that stuff and that's what happens there and then you add all of that to it and then you're able to take out that loan amount.

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Pamela Capalad, CFP, AFC :

So before we jump into the loan application. Yeah, we will definitely get to that section will have the opportunity to hire a handful of part time employees. But it would appear that PPP only applies to loan forbearance for those who have already been hired. So Ted, that is, I've run into this question before. And one, one thing to think about is your PPP loans are not actually going to be audited if they're less than $2 million. So if your loan amount is less than $2 million, and it's not going to be audited, and they're only going to look at the numbers, the total amount of payroll. So we're not sure what the guidance is going to be on that from what our understanding is, if you are asking for forgiveness for a total amount of payroll, I don't think they're going to look at like the list of your employees or who you've hired before and who we've hired now. So you may be able to actually hire a handful of part time employees and get that loan amount forgiven, I would definitely talk to your bank about that from our understanding you can do that. I love it and then I'm Jordan PPP loan applications give you a loan for two and a half times a monthly payroll if an independent contractor pays themselves exactly as they put on the application after eight weeks that only comes out to less than 75%. How much of the PPP should a contractor pay themselves? So, we're gonna go into the loan forgiveness process in a second. You may not be able to get the total amount forgiven in terms of the actual monthly payroll for an independent contractor. That's the tricky part about applying for this as an independent contractor, but you may be able to add other expenses to it to at least get that other 25% forgiveness. And then what happens when your CPA files your taxes using an 1120 for S Corp and doesn't have a W2 or schedule C? So Carolyn just to answer that you may be able to find a bank that allows you to do it. So we have a list of four banks are going to To show you a little bit and you may be able to find a bank that will take your income without the S Corp, but it is very rare. A lot of banks are saying if you have an S corp, you had to have run payroll. If you didn't run payroll though, in your S corp, that means you also save all of that money on taxes. So you've probably saved a lot of money on taxes by not running payroll because when you have an S corp, you don't have to pay Medicare, Social Security tax. So it may still end up being in your favor that you didn't run payroll. I am self employed and got a PPP loan and just heard I can use loan to pay myself and I'm unsure how to use it. Yes, we are definitely gonna go over the forgiveness part for sure. What qualifying documents didn't get approved let's actually dive into the loan application part. So this is the application that you have to fill out. This is from the Small Business Administration. This is just a sample basically but this is what every bank is going to have you fill out because this is what they're required to submit all banks will also have their own application. Then the other potential required documents truly and honestly depends on the bank. This is a smattering of things I've seen from a bunch of different banks A W9 form, bank statements, profit & loss, 2018 or 2019, tax returns, payroll forms if you have an S corp, business balance sheet, personal balance sheet, new application for the bank, if you're a new customer, beneficial owner forums, a lot of banks require that. So I've seen banks just ask for tax returns and profit and loss. I've seen banks literally ask for every single one of these items. So the way that this works is the bank is the one who ultimately decides whether they're comfortable backing the borrower, which is why if you do have a good relationship with an existing bank, then it's definitely a great situation to talk to them and work with them in particular, because they can kind of let a few things slide if that makes sense. Like if you don't have all of the payroll forms, or if you don't have your 2019 tax returns yet, then they can bend the requirements a little bit. Because ultimately, they're the ones that are signing off on you and they're the ones that are going to say I trust this person to pay this loan back or to do the forgiveness process correct. So these are the potential documents that are required for getting approved but it really depends on the bank. If you're an independent contractor, as a realtor, you definitely qualify as long as you can show that you made an income on a 1099. Or you can show the main business income on bank statements, and it'll show up on your 2018 or 2019 tax returns. Let's see. All right. So these are the banks that we know of. I know this is a short list because we haven't run into a lot of banks actually, that are taking applications for new customers. But if you have been rejected for PPP in the past try Sunrise bank Leader bank, Spring dot bank, Spring bank in the Bronx, New York, Brooklyn Co Op is the place where I ended up getting my PPP loan. They were great. There's also a link here to the list of SBA approved lenders. We do recommend checking your existing bank first because they're gonna prioritize your application, especially if they're smaller bank, I saw that there were a lot of people who got to prove them smaller banks. I know with my bank, in particular, Brooklyn Co Op, they were only approving loans for less than $250,000. They were prioritizing independent contractors and small businesses, which is amazing.

Dyalekt :

A lot of the smaller banks are prioritizing smaller businesses so you may have a better chance they're sad to say, you know, as we're listing these banks out there problem going to fill up fairly quickly. But other ones should arise. And again, please share in chat if you know ones in your area that you can share.

Pamela Capalad, CFP, AFC :

Yes, absolutely. And then Patricia, I just want to answer your EIDL question. So the SBA changed the grant amount. They did not change it back to the original 10 k amount per company. It's still one k per employee. And then let's see, Sam,

Dyalekt :

Can you talk about having or getting a PPP loan and unemployment for freelancers? I have PPP but I've not spent any money yet and I'm waiting to hear about unemployment. I don't want to get the PPP back in case I don't get unemployed.

Pamela Capalad, CFP, AFC :

Yes, we are totally getting into that. So but short answer is as soon as you get the PPP loan, those eight weeks from the day that you get the loan, you do not qualify for unemployment. After those eight weeks are done, you absolutely qualify for unemployment. So that's how unemployment and PPP work together.

Dyalekt :

As an event planner, Pam, here is sole proprietor do I apply for PPP, EIDL or all of the above? Apply for all of it. Unemployment, everything I

Pamela Capalad, CFP, AFC :

We applied for all of it. So Dyalekt got approved for EIDL and unemployment. Yes. And then I got approved for PPP and the EIDL, not unemployment. We recommend if you technically qualify for all of it, try applying for all of it.

Dyalekt :

I've been seeing lots of people aren't getting certain things that they should be getting. So make sure that you apply for everything. So you probably get something.

Pamela Capalad, CFP, AFC :

Yeah, exactly. Yeah. And then let's see, um, Myuri, If you could specify where did you find these links, please let us know. Ted, I rely on my revenue from my day job and what I did for my side gig, I added two gigs I did Keynote speaker, as well as future keynotes. Can I apply for California partial unemployment. So the way that that works is you can only apply for unemployment if you're making less than the threshold. In New York State, it's $504 a week. So if you're making less than $504 a week, then you can apply for unemployment. If your day job pays you more than that, then you don't qualify for unemployment. You probably qualify for PPP, if you made anything 1099 income.

Dyalekt :

So that is a conditional Yes, possibly. And sorry about the especially the thing about future keynotes that's happened to us. And it's happened to a lot of people who have stuff where it revolves around them getting in front of people and being awesome and other people wanting to book them too. There's really no way to quantify that. I think it's something that you should note for yourself and start thinking about how we can replace that income. But that's a whole nother workshop.

Pamela Capalad, CFP, AFC :

Yeah, absolutely. So there's a lot of chat going on. And let's go to loan forgiveness. So this is brand new, they just put out guidance on loan forgiveness on Friday, last Friday. And we just started analyzing it this week. So let's see what Okay, yeah, so the way loan forgiveness work, the application is 11 pages long. It's a long application. Most of it is worksheet so hopefully that doesn't deter you and your bank should help you fill it out. There's a link to the application here. And then another financial planner friend of mine, Brian Thompson wrote over Forbes article that breaks down every single part of the application on how to complete it for freelancers. So we're not going to go through that today. But we are going to go through a high level overview of how forgiveness works. So the loan forgiveness overview. What amount can be forgiven? We've had questions about this before. So it's eight weeks of payroll plus 25%. For other costs. payroll includes all salary or wages or any compensation including 1099 compensation, up to 100 k vacation pay, sick pay, parental leave, health insurance, premiums, retirement benefits, so any contributions you've made to a SEP IRA, and then state and local taxes that you've owed as well. And then all of these expenses can be forgiven. Payroll, mortgage interest, business rent or lease. And then here's the thing utility payments. If you work from home and you are already deducting these utility payments, these expenses can also be forgiven. So please track these and make sure that this is included in your forgiveness loan amount. And then if you have a payroll or bookkeeping service, then they can usually help you track these documents and expenses as well. Oh, yeah, absolutely. And they're sending you the slides as well. Here. Here's what I'll do. I will actually go back. Yeah. Oh, it's so great. Let's see. Yeah, here's the article. And then does that include car aka transportation? I don't think it includes a car actually. Yeah. Yeah. I think it's like, I'm taking transportation like a cab or public transportation or something like that.

Dyalekt :

Yeah. We've got a few more questions in the q&a filling up.

Pamela Capalad, CFP, AFC :

Yeah, let's do it. Oh, so let's go back to Carol's question. An 8 week timeframe for loan forgiveness. Can we spend the money in a four week timeframe? So it depends. The reason why I say depends is because if you're an S corp, then you have to run payroll for eight weeks, which means that you have to run half of the PPP loan amount in May and half of the PPP loan amount in June. If you are a freelancer, then they base your forgiveness amount on your annual income for 2019. And they do take eight weeks of that, basically. So that's how that works. And there's a calculation in the article that we send as well.

Dyalekt :

For Benjamin, I am self employed and got a PPP loan. just heard I can use a loan to pay myself and sure how to do that. Okay, great.

Pamela Capalad, CFP, AFC :

Yes. So again, it depends on if you have an S corp, and you have to run it through payroll, if you don't have an escort, then you don't necessarily have to pay yourself for what it looks like in the application actually looks like, not in a payroll wages kind of way. You actually because the calculation is just based on your tax return on your schedule C, then you don't actually have to pay yourself. They're just going to calculate the loan amount based on that.

Dyalekt :

It will count as you having paid yourself. Yeah. So greetings. Greetings you. How often do you do this? And when you broadcasting from Oh, yeah, we're broadcasting from Brooklyn, New York. It is another country another planet actually. It's the biggest planet in the galaxy. And yeah, thanks. We're broadcasting here with Fiverr and we have a number of things that we're doing there and I was talking about at the end Yeah. I applied and was told they could not figure out my monthly income.

Pamela Capalad, CFP, AFC :

Oh, Carol, I would go to a different bank. They should be able to look at your tax returns and determine what your monthly income is based on your annual income on your tax returns.

Dyalekt :

Yeah, a lot of the times we're asking you guys to share some of the rejections that you guys so we can tell you which ones are legitimate, which ones of them just nort having the time for you.

Pamela Capalad, CFP, AFC :

I literally had a back and forth with a bank with a banker at a big bank. I'm not gonna say who, but a big bank who had no idea what a 941 and a 944 were. Which is like the standard requirement for payroll. So yeah, talk to a different banker or even at the same bank, if they don't seem like they know what they're doing.

Dyalekt :

Yeah, a lot of times, they're just trying to get you out the door. I have three businesses applied for one guy to raise money. That's great.

Pamela Capalad, CFP, AFC :

I'm a freelance artists. Can I get a few alone? Yes, you absolutely can. As long as you reported income on your 2018 or 2019 tax returns and you receive 1099. In 2019. You can absolutely get a PPP loan so it's definitely worth applying and let the bank help you figure out the amount. Banks are better right now at knowing how to issue these loans when they've done so many of them. I just applied for two other business on paypal chase not Yeah, Chase is not accepting anymore yeah, they've they've they've issued too many loans. I would check out those those four banks that we sent and then can I apply for PPP even though I'm on unemployment? Yes you can apply for PPP, like we said before, if you receive unemployment you have to stop claiming the eight weeks that you got PPP.

Dyalekt :

For that for that freelance artists as well if you're not getting freelance work, please apply for unemployment to the same situation, the eight weeks that you get the PPP, you can't apply for the unemployment but otherwise get the unemployment.

Pamela Capalad, CFP, AFC :

And then after the eight weeks are done apply for unemployment again.

Dyalekt :

Yeah, that's the thing about unemployment for those who aren't familiar with it. You have to apply for it when it's happening. It can be non sequential. So

Pamela Capalad, CFP, AFC :

yeah, so it looks like Alberto and Carol have similar questions. Albert says I have an 1120 asks, which is the corporate tax stream file for S Corp, no payroll on your distributions. Could I apply for PPP and Carolyn's asking, She doesn't have W2 or Schedule C. So it really depends on your relationship with the bank. And in general, most banks will say no, especially if you don't have a relationship with them. I did just have a client who got approved by a bank, they do have a good relationship with. So again, it's up to the bank. So if you have a good relationship with someone, then ask them what they can do. Okay.

Dyalekt :

Everything I read talks about full time employees, I have one full time a one part time. This was great. Yeah, will the the part time employees payroll be forgiven?

Pamela Capalad, CFP, AFC :

Yeah, as long as Yeah. I love that. As long as it's run through payroll, and they're not getting paid as a 1099 contractor, the part time employee also counts for the PPP loan forgiveness. And then we have been approved but not funded yet. It has been three plus weeks. Any idea as to the reasons? I would be calling your bank everyday at this point.

Dyalekt :

Yeah, call and harass them.

Pamela Capalad, CFP, AFC :

Yeah. It should have happened in like a day or two. I would ask them what happened?

Dyalekt :

That's really weird. That shouldn't be happening.

Pamela Capalad, CFP, AFC :

And then "can you provide banks are accepting applications?" So you mentioned leader bank, and we mentioned sunrise banks, Brooklyn Co Op. Oh, yeah. Yeah, and we'll send you the slides. So and then what I would also do is just try other small banks. A lot of banks now have gone through their existing customer list. So they are taking applications from new customers. These are the four that we know are currently doing them.

Dyalekt :

Yeah, so generally reach out to the smaller local banks, you have a better chance of that. If you were hearing something from people in the community about one of the banks even a bigger bank that is accepting folks go with that and let people know. Yes. All right. All right. "So I have a software business doesn't have any revenue yet. Under development, I have been paying salary and other expenses do I qualify?"

Pamela Capalad, CFP, AFC :

So if you have been paying salary and you've shown that on your tax returns, then you might be able to qualify for PPP. It really again, depends on the bank. Usually, I don't think they're looking for revenues. I think they're just looking for you, especially if it's an S Corp, if you running salary through it, then they'll be able to approve you with payroll forms.

Dyalekt :

Okay. "New Business last year, denied through PayPal because improper payroll documentation I submitted an excel with payroll expenses by workers are all 1099. What should I be providing?"

Pamela Capalad, CFP, AFC :

So, if your workers are all 1099 If you do not qualify for PPP. Your workers have to be W2 employees but your workers can apply for PPP on their own. If you paid yourself then you might be able to qualify for PPP for whatever you pay yourself. And then, Sky, "Do you have to have a minimum 1099 amount". No, there's no minimum amount for 1099. But your PPP loan will be based on how much you have on 1099. And then there was another question he had after that, okay, okay. Um, let's see. "What year taxes?" Either 2018 or 2019, whatever, the most recent one is. 2018 and 2019 is what they're looking at right now. Yes. And then "do you have to have filed your 2019 to qualify for PPP loan?" No, I have not filed my 2019 taxes yet. I confess, and I qualified for PPP. So they will ask for 2019 profit and loss statements if you don't have your 2019 taxes. And those should be done. "So technically is possible to spend 100% on payroll without increasing compensation. Will SBA frown on me for increasing salaries to employees for those 8 weeks to ensure 100% is forgiven and then reduce their payback?" So no, no you You can increase compensation if you wanted to in that time period. The other thing you can do is you can get other parts forgiven. So health insurance premiums for your employees are forgiven. Business utilities are forgiven retirement contributions that you make are also forgiven. But you can also increase people's salaries if people were do commissions or bonuses. You can pay them within that time period as well.

Dyalekt :

Okay, "Several LLCs and only paying 1099 I am a solo one. Okay. So more than one PPP loan again. 1099. Yeah, 1099's are a no, sorry. But again, they can apply.

Pamela Capalad, CFP, AFC :

You can apply instead. Yeah. And then you won't have to pay them for those eight weeks. "And then can you do more than one PPP loan?" Yes, you can try and see if a bank will do that. You can technically apply for more than one PPP loan, but it may be a matter of your Social Security number running into the system and them saying, "Oh, this person already has it". So if you have another social if you have a partner in one of those LLCs, I would have them apply instead of you. And then also, "I have received an SBA Oh EDL loan for a very small amount. Does that preclude me from applying for PPP?" No, you can apply for EIDL and get the advance and still apply for PPP. I got the EIDL, I got the loan advance and I got the PPP loan. And a lot of my clients have gotten both as well. So yeah, all right. And then "how long of rent do you add?" You add rent for the eight weeks so the two months basically,

Dyalekt :

"I've heard the max can be forgiven for the sole proprietor is two and a half months payroll around 75% ish. I spoke to lawyers today, we're very clear about this, who will be able to determine that?"

Pamela Capalad, CFP, AFC :

I would really if you're trying to figure out what the calculation is. This article is amazing. He literally puts in screenshots and he puts in the actual numbers. He has examples so that that'll help you figure out exactly how much you can actually qualify for.

Dyalekt :

Church payroll, "what about PPP for church payroll, small church, but only proof of outgoing payroll checks".

Pamela Capalad, CFP, AFC :

As long as you have proof of payroll being run, then you should be able to get that amount forgiven aregardless of whether it's a church or nonprofit or if it's for profit.

Dyalekt :

Yep, that's a Yeah, that one should be pretty easy. "How do you get a loan if you're a newer business and don't have any employees you don't have a direct payroll? You're a sole proprietor"?

Pamela Capalad, CFP, AFC :

I love that question. Okay, so one, you would have needed to be in business before February 15 2020, which means you would have needed to make income before that year. And then if you don't have any employees, that's fine. If you are paying yourself or if you're making income from that business, then that's how they determine the amount of the PPP loan.

Dyalekt :

Oh, we apply to Bank of America. We're multi member LLC. They were asking for a Schedule C but we don't have that as an LLC. Do you know what they actually require from us so we can submit it? Would it be just the schedule okay.

Pamela Capalad, CFP, AFC :

So it should be the schedule case. I'm yours. She though should be on your personal tax returns. So if you're a multi, you're a multi member LLC, then you should have schedule C's on your tax returns or some kind of income that shows that you made money from this multi member LLC. So they may be able to take 2019 or 2018 tax returns, they may be able to take the schedule case in because schedule case you don't know what those are folks you're listening is basically the the thing that you're issued as an LLC instead of like a 1099. That's how you get paid out as an LLC. So they should be able to schedule case again, if you have a banker who doesn't know what a schedule changes, then I would talk to another banker or talk to their supervisor. They're pretty unfamiliar with these tax documents or what I found especially bankers who haven't dealt with small business owners before so I would double check with a different banker if they denied you that

Dyalekt :

yeah, I mean, it's another reason to be able to go with the smaller banks. Yeah, exactly. For 2019 I had a W two job for the majority of the year and freelance on the side before becoming A full time Freelancer because of this, I only qualified for a very small amount from line 31 on 2019 taxes, despite the fact that I make way more in 2020 on a regular basis. So, you know,

Pamela Capalad, CFP, AFC :

is very tricky. Yeah, that's another thing. I ran into this issue too, because I started having employees in June of 2019. And they took my may they took my average payroll from February 2019 to February 2020. So that's just what you're gonna qualify for.

Dyalekt :

Yeah. I mean, everybody in all different ways, just like the person who was mentioning having other upcoming gigs or possible keynotes coming from it, everyone who is in transition in the middle of going up to the next step, you all got screwed, and there's really not too much we can do about it, especially in terms of documentation. So again, to reiterate, you can only apply for unemployment or PPP. Is that correct? Let's go straight to that.

Pamela Capalad, CFP, AFC :

Yeah, this comes up a lot. Can you do both?

Dyalekt :

Yes, you can do both.

Pamela Capalad, CFP, AFC :

Not at the same time. There's no guidance on whether you can apply

Dyalekt :

and technically apply technically. But cannot apply for the same time.

Pamela Capalad, CFP, AFC :

Yes. Oh, yes, that's good

Dyalekt :

distinction exactly the same time but not for the same date. So a day that you would be paying yourself bppv money is a day that you are not collecting unemployment.

Pamela Capalad, CFP, AFC :

Yes, if you are making less than 500 for a week in your state, or whatever your unemployment threshold is for your state, you can do claim unemployment. And then the PPP period is the eight weeks of the date that you received it, and then the P wave benefits the pandemic unemployment assistance benefits, they last for four cumulative months, not four consecutive months, you can jump on and then jump back off and then jump back on. So I saw him I think this executive, Yes, exactly.

Dyalekt :

I want to answer this one too. What have you paid yourself when you've not paid yourself because of a lack of money? Can you double your payroll? This is really important. That

Pamela Capalad, CFP, AFC :

is a great question. So if you have not paid yourself, but the business has made money and you're a sole proprietor, then the bank is going to count that as your income and then you can absolutely pay your yourself, whatever the PPP loan amount is, and that's what I would pay yourself at that point which is great. How much does personal credit factor into getting the PPP loan? That's one of our frequently asked questions. Let's go to that do they check your credit SBA does not require but some banks have my bank did not a lot of banks have not been checking credit he ideal idea alone they did check your credit and then it's

Dyalekt :

okay. Which by the way is again not necessarily predictive of whether or not a bank may do it. So yeah, go speak with them. So just rent or mortgage have to be for a business if we are an LLC can be used for home even if we don't have

Pamela Capalad, CFP, AFC :

the first q&a. Can home office expenses be forgiven? Yes, whatever you normally claim for home office expenses on your tax returns, that amount can be count towards

Dyalekt :

forgiveness as well. I want to shout out the Oh, yeah. Oh,

Pamela Capalad, CFP, AFC :

yeah. Yeah, my small bank did not pull my credit.

Dyalekt :

Yeah. Thank you. Thank you for sharing That yeah that really again please we may not get to shouting out all the ones in the chat but there's a lot of stuff coming through right now but really appreciate it and everyone else can see it

Pamela Capalad, CFP, AFC :

yes if I did not get a lot of my PT alone can I apply for more so unfortunately you can't

Dyalekt :

Yeah, I was rejected because my credit was not sufficient because that seemed like this was a based on credit approval

Pamela Capalad, CFP, AFC :

Phoenix I would try another bank honestly. Yeah, just what

Dyalekt :

we're saying. Yeah, I'm gonna give I I was thinking that a lot of the banks that were checking credit, we're just doing it in like a perfunctory way and they weren't actually looking at it.

Pamela Capalad, CFP, AFC :

Yeah, SBA does not require credit check up. So try another man, that really sucks. Yeah, what if you didn't file your 29 taxes? yet? We answered that it's great.

Dyalekt :

How can I show that I'm paying myself Great question, What proof do I need to have so I pay myself through QuickBooks as an independent contractor.

Pamela Capalad, CFP, AFC :

So from what we understand, if you're an independent contractor, or you receive 1099 income and you don't have an escort, then they're just going to take your 2019 income and calculate eight weeks of that to determine what the amount they're gonna produce. So

Dyalekt :

if it's just you and you're evaluating your opinion, nine, you don't have to worry about manufacturing all that stuff. Exactly. It's just gonna go with the money you made and get that as that.

Pamela Capalad, CFP, AFC :

Yeah, so the friggin misapplication has a worksheet and a calculator for people who are self employed

Dyalekt :

and are independent contractors. Oh, this is great. Do you have to show current economic loss sales?

Pamela Capalad, CFP, AFC :

No, you don't? Not at all. Not at all. Not even to apply for PPP loan in the first place. You don't have to show economic loss.

Dyalekt :

That's really great that you bring that up, because that's when a lot of the concern that people been like thinking about it, like unemployment, like you have to show that I'm making less than Yeah, you know, "if I accidentally made a mistake in my application, resulting in an extra $1,248. That's pretty specific dollars. Do I have to return the extra or can I just convert that to a loan at the end of the forgiveness if I don't have to return it? Can I use it to pay another bill during the eight weeks?"

Pamela Capalad, CFP, AFC :

So you do not have to return it but if it doesn't get forgiven, then you will have to pay it back. But again, the loan terms are 1% over two years. So keep it simple. Pay other bills, use it to pay whatever you want, because they're not going to audit any loans that are less than $2 million. They're just going to audit the forgiven amount, but they're not going to actually audit the total loan amount.

Dyalekt :

Yeah. And I mean, if it's something that's, you know, stressing you out burning a hole in the back of your neck, then just hold on to it and pay it back all at one time. Yeah, exactly. You know, remember that, you know, even when it's about the money, it's about how you feel about it. Because even if you get the exact loan amount, if it's messing with you, you're not going to do the right thing and you're going to end up in a bigger hole. So on that thing, "any guidance on cash basis or accrual method for accounting reporting, I have an outstanding account. I have outstanding account receivables in 2019?"

Pamela Capalad, CFP, AFC :

So there is no guidance on that, unfortunately, and I think that as long as so in terms of accounting, the worksheet is going to walk through what you can actually get forgiven. So I don't think it's going to matter whether you're doing cash or accrual based accounting in terms of the amount.

Dyalekt :

"what if you add statements on your application?"

Pamela Capalad, CFP, AFC :

If you did, then the bank is going to ask you for it.

Dyalekt :

Yeah, they'll come at you and harass you about it. "What if your business was launched this year? No prior tax info Can you still apply"? Oh, well, what was the date again?

Pamela Capalad, CFP, AFC :

If your business was established before February 15 2020, then you can still apply but you're only going to be able to apply for that period between January 1 and February 15 of income.

Dyalekt :

So you can get a month and a half of stuff that's not even eight weeks yeah.

Pamela Capalad, CFP, AFC :

Oh, yeah, I know. I know he's upset about PPP loan so much. "I'm a sole proprietor and I receive payments via and code is that does that suffice as income verification?" So if you receive payments between via and .co then you should have received a 1099 and you would use that to submit as proof of your income or your 2018 tax returns. And then "what about PayPal is a lender?" We saw they do check your credit but they are doing PPP loans, lending clubs also doing PPP loans. lending circles also doing PPP loans. There are a number of lending companies that are doing PPP loans as well.

Dyalekt :

Oh, yeah, just a random thing in there. Speaking of like lending circles and things like that a blessing loom is not a lending circle. It's just a pyramid. Even if you look at the way that the loom looks like it's just a pyramid from an aerial view. That's an MLM in disguise. I just want to throw that out there because people are using terms that are similar. Other terms to conflate with stuff tried to trick you out of your money. Oh, yeah. All right.

Pamela Capalad, CFP, AFC :

We're gonna answer as many of these as possible in the next 15 minutes.

Song :

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Pamela Capalad, CFP, AFC :

We're gonna do some random lightning round stuff. Carol, "can you apply at multiple banks at once?" Yes, technically, but we had a client he did that and if you run into sometimes banks will pre approve you and then if you try to apply to another bank, they're gonna say, Oh, you already pre approved at this other bank. So be careful when you do that. I won't do too many of those.

Dyalekt :

"Can you hire you to help us?" Yes, you can hire Pam and or any other financial planner, to help you out through this situation. You can hire Brian Thompson. If you have a complicated situation, feel free to reach out to a professional. You know, this stuff we're giving is education since a smattering you see a whole lot of stuff is flying around you need to talk it out you need to add your handheld if you need to understand what's going on please speak to a professional. We think that it's very important not because it's a thing that we do, because we've seen how people will often run themselves into walls several times when they could just ask somebody.

Pamela Capalad, CFP, AFC :

Yes, absolutely. If you go to brunchandbudge.com we're again doing pay where you can virtual brunches. We'll just answer any questions you have and give you any advice you need on all this stuff.

Dyalekt :

Also want to shout out in chat someone's saying that they have software to securely automate file collection for banks. So if anybody knows any banks that need help, holler at Brian spelled the correct way we are I brian@boilerplate.co.

Pamela Capalad, CFP, AFC :

Love it. "Could you please explain what is the EIDL and the PUA". EIDL is the economic injury disaster loan. And PUA is the pandemic unemployment assistance at the extra $600 a week

Dyalekt :

that was picked up on the books.

Pamela Capalad, CFP, AFC :

"Will the EIDL open up again?" No, ounfortunatly not Carol. The EIDL is now only for agriculture and the maximum amount is $150,000.

Dyalekt :

It is only for agriculture, yeah, "if you have a sole proprietorship that generates some income, can you still qualify for unemployment?"

Pamela Capalad, CFP, AFC :

So going back to that number you as long as you make less than your state's threshold per week, then you do qualify for unemployment. And as long as you qualify for $1 of unemployment for your state, you also qualify for the PUA pandemic unemployment assistance. All right, let's keep rolling. "I'm a VFW commander of the VW f nonprofit, we should get our PPP loan from BB and T in a day or two. Yeah, bb&t, we just found out that our governor will not let us open for another five weeks when do we need to spend this money?" You have you have to spend this money from the day that the PPP loan is received or there's an alternative payroll period or it's the date of your next payroll after the PPP loan is received. So you do have to spend it right away.

Dyalekt :

"Without having filed 2018 and 2019 taxes a self employed cleaning business, do I have any chance to qualify for the PPP?

Pamela Capalad, CFP, AFC :

Unfortunately, no. I would if you can file your 2019 taxes ASAP and then apply for PPP after that.

Dyalekt :

"My wife applied for PPP EIDL and unemployment and she got it all". Congratulations! "how can she send back the unemployment? We live in New York".

Pamela Capalad, CFP, AFC :

As long as you receive that unemployment before the PPP loan money came to your account, you do not have to return unemployment. Otherwise, I believe that they call back unemployment during your taxes. That's my understanding, but that could change.

Dyalekt :

And again, remember that these things can both be had just not during the same period. So if you can look it out and figure out when you should be getting unemployment and when you should be getting PPP you can have both Yes. "If you got PPP, can you apply for EIDL? I own the business. I am also an employee of my businesses. great distinction. There's been a lot of variations on that, should I apply for unemployment?"

Pamela Capalad, CFP, AFC :

So you can apply for PPP and EIDL, but the EIDL applications are gone. Yeah, that's over now. "I'm Joe from Brooklyn. I just did the PUA, I did initially. How do I recertify every week?" We cannot answer that question for you right now. Sorry. Yes. "What is PUA and UI?" PUA is pandemic unemployment assistance. And UI is unemployment insurance? Yes. "What happens to those who start a new business during all of this and nobody in the works before the shutdown? Can you still apply?" If that new business made money, then yes, if not, then there is no amount that you can apply for.

Dyalekt :

Like I said, everybody in transition, they're really pretty screwed. It's gonna have to be something after all of this that ends up addressing it. So a thing that I think is really important, if you have a new business that you're starting, if you are about to go to a new place in your business, in the thing that you're selling in the job that you have, and that kind of fell apart, or even if you were going to go form in a place where you had connections that are going to see document all of that. Because in the future, there's going to be some reckoning with that and you need to have your stuff together.

Pamela Capalad, CFP, AFC :

Yes, you can apply for unemployment Insurance if you did make income from that new business and on the income side. "If you qualify for unemployment, do you get the amount you qualify for plus 600?" Yes.

Dyalekt :

Even if it's $1, you get $601. "I'm a single member LLC and made a loss in 2019. What do qualify for?"

Pamela Capalad, CFP, AFC :

You actually don't qualify for anything because they take the income that you made net of business expenses, so unfortunately, the PPP loan is not applicable in that situation. Sorry. Okay.

Dyalekt :

Yeah, business taking the losses in the same division, as I was saying about people transitioning and moving on to next places.

Pamela Capalad, CFP, AFC :

Yeah, unless you run payroll. So "I received a notice from the SBA asking me to verify my identity, they also provided a confirmed amount of approval, and now it says my application is being processed." So you will receive another email that they're talking about the EIDL loans right now. If you if you got an email about the EIDL, you'll receive another email saying your loan has been approved. So just wait for that email. I think we should do a whole other workshop on the EIDL. and a part two on this Still a bunch of questions, y'all. Let's keep going. Um, Dean, you said "business least but I work from home, which, from which rent covered?" Yes, Home Office is covered. "If we cannot meet our payroll dollars within a week, can you run a payroll several days earlier than usual in order to spend the dollars?" So Mary Lynn, great question. I mentioned that there's an alternative here. Let me pull up the slide actually, there's an alternative payroll period. And so what that means is you would actually use the first payroll period after the eight weeks. So if you received the loan on 5/5 for instance, and the next pay period doesn't start until 5/15, you can have a week start counting on 5/15 and run a payroll from there and get that amount forgiven. "And then do you think they will extend a week appeared as they are currently talking about in Congress?" No idea yeah. Nothing passes the senate ya'll,

Dyalekt :

well, yeah, we don't have anything on policy. That's not really our area. "I received the PPP loan and of course we'd like to keep it but sole proprietor and do not pay roll. I'm a single member LLC with no payrolls. I know there are a lot of things I could spend money on, but I doubt would be anywhere near the amount gave me. I'm able to keep the money over what is acceptable and does the amount convert to 1% APR alone?"

Pamela Capalad, CFP, AFC :

Great question. So again, go through the forgiveness application process and they will they will calculate exactly how much of that loan is forgiven. And then after that whatever the difference is you can keep as a 1% APR loan What if you didn't have payroll or make any money in 2019 then you cannot qualify for Yeah, had many expenses sorry, you still can't qualify,.

Dyalekt :

Yeah, so everybody like I said, if you've had expenses but didn't have income, if it wasn't rolling yet, then it's not gonna be a thing.

Pamela Capalad, CFP, AFC :

So "why are they not giving the full $10,000 EIDL grant"? Not sure. They just changed the rules and they said it's $1,000 per employee. "We are two years startup S Corp. We are about to bring eight people on payroll when covid hit. We are now in upheval. We want to bring people on and apply for PPP can we apply?" So you can only apply if they were on payroll previously, so this only applies to people who have had people on payroll in the last year between February 2019 and fix 2020 so you had people on payroll at any point during that period, then you can apply for PPP.

Dyalekt :

Yeah and I feel like this is similar to what? Benjamin's yeah. Oh

Pamela Capalad, CFP, AFC :

yeah "C Corp is about to hire my first two employees. I'm the sole executive started c corporate and 2018 will be the best strategy, if any, for gathering anything that is forgivable. I'm watching my competitor with parallels for getting money by strategy". So if you haven't hired two employees yet, and they haven't been on payroll in the last year, then you can't qualify for that PPP money, I'm sorry.

Dyalekt :

"What if line 31 is zero?"

Pamela Capalad, CFP, AFC :

That means that you didn't pay any taxes on any of your business income and you do not qualify for PPP but you also didn't pay any tax on your business account.

Dyalekt :

"How much does personal credit factor into getting loans to freelancers working as sole proprietors?"

Pamela Capalad, CFP, AFC :

Again, SBA doesn't care what your credit score is, but your bank may?

Dyalekt :

Yes "Does a 1099 SSA work?"

Pamela Capalad, CFP, AFC :

No, it has to be a 1099 MISC 1099, miscellaneous.

Dyalekt :

Yes. "Can you cover again what expenses other than mortgage utilities and payroll are covered?" Yes Look at this slide again and remember you will get slides.

Pamela Capalad, CFP, AFC :

Yes. "Was the freelancer with 1099 requesting a loan?" Yes. So if you have 1099 income part of your loan is forgivable maybe 100% of it, depending on the calculation.

Dyalekt :

And "what is the name of the Brooklyn bank you are using?"

Pamela Capalad, CFP, AFC :

Brooklyn CoOp Credit Union is awesome. And then Spring Bank in the Bronx is also awesome.

Dyalekt :

Yeah, the other ones "2019 income was low because I had clients who didn't pay. How could I handle that given that it couldn't be reported on my 2019 taxes? It seems like there should be a way to base up off that revenue"

Pamela Capalad, CFP, AFC :

Oh, yeah, this is where the cash base versus accrual based accounting might be able to come in where your accounts receivable might be something that the bank counts. So the client and payable you're expecting that as part of your accounts receivable, then they may be willing to count it as income that you should have received and you may be able to get your PPP loan calculated that way.

Dyalekt :

Yeah. Again, this is something that's probably more likely with a smaller bank that you can actually sit and talk with. Yeah, "I am receiving unemployment for my full time job. I own LLC, sole proprietorship can I apply, will it affects unemployment?"

Pamela Capalad, CFP, AFC :

Yes it will. So again wait eight weeks if you want to get PPP loan.

Dyalekt :

okay "started my business in April can I apply?" if you started this in April, you cannot. Yeah, we're gonna fly through a few of these that we've already answered. "Does the loan count as income on taxes?"

Pamela Capalad, CFP, AFC :

NO, the loan is not taxable that is this year. Yes. There's no forgiven amount so it's just absolutely no. And then "I'm a sole proprietor PPP also qualify for unemployment." We answered that question. "What is the income maximum"? $ 100 k. "What is the average turnaround time right now?" It depends on the bank. Yeah. So it should not be weeks. The application might take weeks though right? "I have an LLC but no employees only contractors can you apply?" Yes. If you pay yourself you can apply for yourself but not for the amount we pay our contractors.

Dyalekt :

Remember pay for yourself not your contractors.

Pamela Capalad, CFP, AFC :

your forgiveness forms we have the link to that in regards to my car by never did W2 payroll but do you pay someone so no. 1099 the bank she lives in New York. Apply at the bank she listed if you live in another state, yes, you can. And sunrise banks in Minnesota but they're taking stuff nationally leave your bank is in Boston, Massachusetts, and they're taking people nationally.

Dyalekt :

Oh, "how does this work with PayPal?"

Pamela Capalad, CFP, AFC :

Oh, so PayPal is issuing PPP modes as well. They're acting as a bank essentially. Okay, can I receive unemployment? Yes. Okay, we answered a bunch of these. This is great. Let's see, "I started paying myself a salary in 2020. Can I qualify for PPP?". You can qualify for PPP if you started paying yourself in January 2020. through February 15 2020. Yeah, "I'm on the payroll of my wife's company now, do I qualify for PPP?" Yes, you do. And then "if I had two part time employees in 2019, do they count as part of my headcount requirement?" Yes. So you need to retain the same amount of employees that you had in 2019 to get that loan amount forgiven. They might give you the loan amount, but they might not allow that part to be forgiven. Yeah, don't let them go. Yes, yeah. Yeah. So if you haven't paid yourself, then you Yes, you do not qualify for "PPP vs employee retention credits thoughts." Oh, man, that's a whole other conversation we will do that workshop next time. Sorry.

Dyalekt :

Is there a quick way to say no, no,

Pamela Capalad, CFP, AFC :

That's a complicated tax question. I'm "recovering New Yorker here apply Pay Pal loan builder rejected not supply sufficient information they also run my credit request for comment was not answered any advice the next possible step?" I would apply to another bank? Honestly, yeah, another bank that doesn't check your credit. And most things haven't honestly so far. PayPal sounds like that's been their way to determine whether they're going to give people loans.

Dyalekt :

But just check in with them. Since your credit has already been checked. You've gotten that hard hit to check in with them to make sure that

Pamela Capalad, CFP, AFC :

yes, Oh, thank you. You guys are great pleasure to listen to you. I'm glad he does not affect your credit. I was rejected because my credit was not

Dyalekt :

good to say again, PPP does not affect your credit.

Pamela Capalad, CFP, AFC :

It does not. Okay, your 559 I'm Marcy, are you there? We still have 45 questions, we might need to do Part Two here. I'm here you guys.

Marcy from Fiverr :

I know you and the audience can't see it. But they just answered 106 questions over the course of an hour. That is so amazing. And that was incredibly helpful. Thank you both so much. I wish we had time for all 45 other ones we didn't get to but maybe we'll just have to have another webinar.

Dyalekt :

It's looking that way. So for more Thank you guys. Thanks. Also for the chat. I saw a lot of stuff and people were sharing with each other lots of information she bunkin gets information really great and important, powerful stuff. Thank

Marcy from Fiverr :

you. Yes, thank you for putting that up. Pam. I was about to say I want to make sure people can get in touch with you if they need to. So please, if you're if you're still on, make sure to write down both of their emails. Are you taking on clients right now just so everybody knows.

Pamela Capalad, CFP, AFC :

We are taking clients on right now. So virtual branches. We are also working with clients on an ongoing basis and also every Friday at 2pm eastern time we are we do live q&a on IG Live.

Dyalekt :

yeah on broken budget Instagram Live we do our podcast live and we're mainly using it to answer questions in regards to brunch or budget in the service. It's what you can truly only pay what you can because for compliance case, she's got to put in some kind of numbers for it to make sense, but really pay whatever you can. We know it's tough right now and reach out to somebody who's a professional, it doesn't have to be it can be whoever it is that you're comfortable with.

Marcy from Fiverr :

Awesome. Thank you again, so much. Both of you if this is your first Fiverr community event, you picked a great one to join. So thank you all so much for joining if you want more webinars events.fiverr.com we have one almost every single day. So there probably will be one if you check the calendar. Oh, my dog wants to join us. Wow, this is Nana. So sorry about that. Anyway, I also love how real this webinar is we have a baby we have a dog this is this is what quarantine is. But anyway, thank you guys so much and we will see you all next time. Have a great one. Bye now.

Dyalekt :

Thanks for listening to this special edition of brunch in budget if you have any questions please feel free to continue to ask us in DMS in emails in any format that is okay with you. If you want to tell folks about what we're doing please rate us debate us hate us all you want on all the platforms iTunes and all those other things the songs that you heard were credibility check by flight squad by maintain by bl most wanted out of Columbus, Ohio. And the last song was protecting your spirit by tall Paul out of Minneapolis, Minnesota. Check us out next time and feel free to follow us if there's other things that we need to know so that we can share.

Song :

When we leave as humans we go back to being being human being that really means something but we live in a reality now we're in a time Where I would say to anyone you know, protect your spirit. Protect Your Spirit because because you're in the place where spirits get eaten. Thinking The Beatles can produce with residual was the miracle. seek it out for the babies May we pay heed to this cyclical stone. The tip of this cycle, I suppose, the price to go cycles are born. As for no man standing next will be for children. Not of the hamburger, not the past. Educators was the difference teach without scouting out the outcomes outlooks without gala drop without son, my son right of way, what the difference is created for me night and day. We consider who you picture with teachers. It's not about the image it's about what did you know that adults laugh less than 20 times a day, we focus on what we have learned like money. God forbid our kids go to school to learn from fools the melting pot software to inject them with the rules. There's got to be Barbies to get in with the cool that this won't be like fathers that they never know. I'm not saying every teacher listen. I'm simply saying most of them don't know because they say you can't teach an old dog new tricks no can afford my teacher man. What the fuck y'all know my past and my SS grace, same reason that Women sell their ask for cash. Same reason thirsty men with their cash that said, What's the haps with the pimps in the Cadillacs teens learn from immediate that serves them with no five spokes to push them up. We consider who you pictured as teachers the human mind is like a computer no matter how efficient it may be. Its reliability is only as great as the information if it is possible to control the inputs of the human mind then no matter how intelligent person may be, it's entirely possible to program what he will think it's even possible to program people who laug when a baby's Mr. Rick did my best guess is this due to the guard against detected a baby Cobra is electric. So with must take some swings, a young Pope accepted from the city to the west super Saturday lesson, the smart sense of progression, yet it's best for one myself I can't help if I'm a grown up adult so my hands well, but I cannot talk with your grown man that comes a point in time in life when we don't hold hands what become kitty we don't be gone cities look to yourself for help I'm not won't be gone we can send you pictures teachers image is non physical and I live in this physical body and I have the ability to the vibration that my mind and body will see vibration is a lot universal this entire universe operates by law everythingEverything is vibrating at one speed or another and we can move into a positive or a negative vibration. We use the word healing to describe the conscious awareness of the vibration we're in. If you hear a person say I'm not feeling very well but they're moving saying negative vibrations