HOW TO APPLY FOR AN SBA LOAN AND MUCH MUCH MORE!!!
Dear Clients and Friends
Here is our updated Newsletter from Smyth McIntosh PS/ Law Manzanita and Summary of Various Sources of Stimulus.
There is also a link below to a good video summarizing 8 different sources of economic stimulus for small businesses. It not just about the paycheck protection program loans (PPP Loans) or the SBA disaster loans (EIDL Loans).
Don't hesitate to call me directly at 360.352.0866 or 503.368.4225 with any questions.
Stay home and stay safe and healthy!
SUMMARY OF VARIOUS SOURCES OF STIMULUS
According to Mark J. Kohler
1. Stimulus Checks
Please note: This is an advance on next years refund checks
2. Unemployment Benefits - New federal federal and state benefits are available
3. SBA Loan Forbearance – if you currently have an SBA loan you can ask
for forbearance of your loan payments for 3 months
4. Retirement Accounts - There are many ways to borrow against your retirement account now without penalties
5. Economic Injury Disaster Loan (EIDL) (sba.gov)
$10,000 Advance on SBA Loan will be forgiven
- apply online atsba.gov
6. Paycheck Protection Program Loans (through banks only. If you don't currently have a banking relationship ie a business loan, and only ahve a depository relationship, the bank will not help you obtain a PPP loan. Beware: You will get different interpretations of how to calculate from different banks)
a.) SOLE PROPRIETORS , INDEPENDENT CONTRACTORS AND LLC OWNERS. If you are an owner of an LLC and you take draws rather than a salary the banks may tell you that you cannot apply for a PPP loan for your draws.
However, an LLC owner may request an SBA PPP Loan for net income plus health insurance paid and retirement contribution divided by 12 times 2.5 according to Mark J. Kohler (see YouTube Video link above)
Also, if you are an LLC but elected to be taxed like an s-corporation and have been drawing a salary you can declare your salary along with all your workers salary based on average monthly payroll in 2019 times 2.5 plus any EIDL net of advances you may have already received from your EIDL loan.
If you haven’t received your $10,000 advance under the EIDL, don't add it into the PPP Loan.
DOCUMENTATION NEEDED: 2019 personal Tax return (Schedule C) Take your 2019 net income from your business plus any health insurance premiums paid in 2019 plus any retirement contributions made in 2019 and divide by 12 then multiple by 2.5 to submit your loan request
b.) S-CORPS/ C-CORPS - based on 2019 Payroll reports (941s payroll reports for 2019). Average monthly payroll for 2019 times 2.5 equals your loan request.
7. Emergency Paid Sick Leave (EPSL)
8. Family Medical Leave Act
To file for the Small Business Relief Loan, visit The Small Business Association Website
If you would like help filing the application for the Small Business Relief Loan contact
Sarah Smyth McIntosh at
360.352.0866 or 503.368.4225