Payroll Protection Program (PPP) for Schedule C's

10 Mar 2021 · 2 min

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1:50

Donna Bordeaux explains how Schedule C filers can now qualify for PPP loans based on gross receipts instead of net profit, capped at $100,000. Calculate your loan size by dividing annual qualifying income by 12, then multiplying by 3.5 months. If you have employees, subtract their wages and benefits first.

Questions this video answers

Line 7 (gross receipts).

$100,000.

Divide the annual qualifying amount by 12, then multiply by 3.5 months (three and a half months).

Subtract employee wages and any pension or benefit costs from Schedule C gross receipts (line 7) before proceeding.

Chapters

I'm Dawn Bordeaux with campgroundaccounting.com if your business operates as a sole proprietorship or as a Schedule C business owner, you may have a change in situation with the PPP loan program. Now you still have to meet the requirements that your business was down over the 2019 year. You used to have to take the bottom line, the net profit off of your Schedule C to determine how much PPP loan you may qualify for. The rule changes now show that you may use gross income. That is line seven on Schedule C. The top the dollars coming in the door, not just what you got to keep at if you have no employees, it's pretty simple. Just use line seven and maxes out at $100,000. If you do have employees, you'll take line seven, the gross receipts and deduct your wages for employees as well as any pension or benefit costs. When you take that dollar amount and come to the bottom line, you'll divide by 12 and you qualify for three and a half months. The PPP, not two and a half months. So you're looking at more like $30,000. That will be a big help to many campground owners. So if you have questions about how the PPP loan changes affect you and if you qualify, I would love to chat with you. I'm Donna Bordeaux@campgroundaccounting.com Please schedule an appointment with me and the upper right corner of our website. I look forward to hearing from you.