The deadline is fast approaching from the SBA for micro business owners to apply for Payroll Protection Loans (PPP). This program is available for small businesses as well as independent contractors, solopreneurs and gig economy workers.

https://youtu.be/bvkol6AEClI

Welcome back to the AIDtoNAV Podcast. I'm your host Robert Earl, and we're providing clear direction for micro and small businesses to navigate through the marketplace.

Today going to spend some time... At the time of this recording, it is June 24th. There's a deadline for, as of this point government assistance under the PPP program, the Payroll Protection Program. So, I want to spend a little bit at a time here on the podcast urging you if you haven't already to take advantage of the program. Short little window for you to get your application in and talk to you about some of the programs that are available. Then we're going to in the second half of the show, talk about forgiveness. The guidelines changed for the forgiveness on the 16th of June and so we want to make sure that we're covering those bases as well.

So, I'm going to go ahead and switch on over here to the PPP website on sba.gov. If you are listening to this on a podcast I'm going to include links on our website aidtonav.com so that you'll be able to follow along. But I've just gone to sba.gov and as we go through this, we'll go full screen here on sba.gov. The best place that I've been able to find is going underneath the funding programs, under loans, and then go to the Coronavirus relief options. When that pulls up, there's going to be a little bit of a splash screen, but here's the information that we're really going to take a little bit of time and focus in on your options that are available through this.

So, there is the Payroll Protection Program. This Payroll Protection Program is for small businesses. We can argue about the definition of small businesses, but it's available for small businesses, solopreneurs, those that are involved in the gig economy, those that are independent contractors. So, this covers your real estate agents. This covers your insurance agents. Even though you're brokered with another company or that you are paid out as an independent contractor under another company you can qualify for this program and what this program is going to do.

So, let's break this down very, very simply. If last year in your gig economy that you made, and I'm going to make the math very, very simple here, that you made a total of $12,000 from this gig. Well, what they're going to do is they're going to take the information and you're going to have to verify, validate your $12,000 that you made. Usually, this is going to be done through your tax return. I'm not a tax accountant, but your information say on a Schedule C, is the information that you're going to be able to provide. This isn't the total amount that you made. So, although the amount that you took home, you might've had a gross 1099, it might have been $100,000. You might've had expenses that you claimed that left you with, and I'm making this simple for the math, $12,000.

They're going to take that amount, divide it by 12. So, they're going to figure that you made $1,000 a month and with this $1,000 a month, the PPP will give you a loan up to two and a half times what your amount is. So, as a solopreneur, as a gig economy with no employees, you still are eligible because that 12,000 that came in after expenses was your payroll. This is the amount that you had as a payroll coming in, that you then would have paid taxes with the remainder of your 1040 or with your self-employment taxes that you paid. So, this two and a half times would also apply if you had two employees. It would be the amount that you paid out in payroll ...