I really appreciate all the videos you’ve been dropping! I’m in college and I’ve never been so knowledgeable I feel scammed for paying for a college degree where I learn more from your channel! Thank you
Depends on what degree you're seeking. Trying to become a health care professional like a nurse or physician - college is the only way. Trying to become a small business owner - it's more dicey to see the return on investment.
Hey. Please note that the rule isn't 75/25. The rule is at least 75% of the loan must be used for payroll and up to 25% for other expenses (phone, storage rent). You could actually spend 100% of your loan on payroll.
@@regibson23 That's not what their calculator told me. I put in that I would use 100% of it for lease/rent and it said 100% would be forgivable. I don't have employees, only independent contractors and I don't run as an S-Corp so I literally cannot use it for payroll costs, and I was told that is fine. Do you mind providing a source that verifies your information?
Anyone else watching this thinking the market is gunna drop hard when all the consequences from these loans become more apparent? The stimulus is being praised as a savior for the small businesses but I guess it’s really just pushing back the bankruptcies.
The reality is that it's not ever going to be enough unless they do a stupid big stimulus package. I feel like 70% of small businesses will go bankrupt in the following months. My clients (small businesses in my local area) have all dropped me, I know their financials and they're not going to be able to get through 2 more months of this unless they're in the unlikely scenario where they lived frugally and saved the majority of their income. I know for a fact that the only way they will survive is if business goes back to usual in the next 30-50 days, and everyone is spending just like before the pandemic.
@@TheAbrahamHD Great answer! I am in insurance and I am scrambling to re arrange premiums so people can afford them.....We have not even seen the beginning of the downstream effect. This has ramifications of a great depression. Also one has to look at the massive debt load carried by nearly all Americans-this is scary. I didn't believe in stimulus packages before but I do now. Yes I realize they are only printing money, but they may to forgive a lot of debt across country. This is borderline apocalyptic. This could destroy The FED, would be ideal as far as I am concerned. But starting over will be hard. When I was in the military we had a saying that it will "be like turning an aircraft carrier around.....it takes a long time and great effort. Remember we this " is over" business will be slow to come back I would guess 30% wont even come back. They will carry less employees and be very cautious....I dont see people spending those checks on superfluous things...We are in this deep for a long time. Look out for subprime no credit check loans etc etc
@@wilsmith6551 yes you're right. I hope the fed loses its power to interfere with capitalism if it all goes to shit. We haven't began to see how bad this is like you said, a lot of businesses including me will have to start over. I dont have a lot of overhead so bankruptcy isnt an issue for me, I can get by with unemployment and maybe side gigs after that runs out. If this takes way too long to recover from (and it will, your illustrative example is spot on) I may not be back in business until all these small businesses recover and people are spending again. It's tough but fortunately my debt is less than $25k and I can get by with $1.5k/month. Printing money right now (even if it's a horrible solution) is a great investment for the government to get the economy back up to how it was for small business owners. Sectors of our economy will be obliterated and some are already seeing the effects of it while the majority still haven't.
I wondering if it is due to a bunch of factors: increase of viewership bc the virus, lost of revenue from real estate, not being able to show houses lol. I too would take the time to churn them out
Dont hate guys. Just appreciate the content. Every one on youtube is doing more videos because of increased viewership. But what about the quality stuff he's putting out tho?
I've been sharing these videos almost on a daily. Thanks for the information. I work at a bank and nobody really gets what they are getting into. It's really scary. I almost feel like I should prepare to be out of a job in 6 months when no one can pay these back!
Sounds like playing with fire for many people’s businesses. As with many other things in life, this is going to ruin a bunch of people who don’t educate themselves on how to do this right.
@@manictiger Yep i said this a few days ago, Noticed how over 60m people do not qualify for the stimulus? How were dependants supposed to have predicted a pandemic? Yet, this makes them ineligible to receive help during tough times, Lets not even get into those who owe child support etc.
First time in your channel, living in Poland and here only probably because of Luis Rossman videos about PPP, but you explained all of that perfectly to even me, non-native English speaker. Good Job.
I like this guy he explains things very well. I asked my banker and attorney a question regarding this loan they both emailed me articles from the internet one from Forbes another from Facebook of all places..smh As it turns out I qualified for PPP as an SP but I canceled my application it isn't worth it to me.
Thanks for content Kevan. All good stuff. During this time all my business friends have been baffled on how this whole system works. Your channel has inspired me to create a channel centered around helping sales professionals and businesses alike during this time to get through all the madness. Keep the good fight going!
Hello Kevin, as usual thank you for painting such a very candid picture of what’s involved with the PPP loans. The information you provided will certainly help me make a wise decision as to whether or not to apply for the loan.
My employer is being investigated for fraud. My employer hasn't paid anyof his employees what he owed, he skipped 2 pay periods, he closed down the office, and sent a group text stating he's waiting to for his PPP loan to be approved so we can be paid. I had a feeling he's strategically taking advantage of the PPP to cover his prior debt at theexpense of his workers. This must be happening to millions of people and nobody seems to talk about it. I advise everyone to revise and thinkabout what you're doing and don't play monopoly with your employees money.
People: don't rely on this guy's youtube video when deciding what's best for you and your business. PPP loan is plain and simple. I've never seen simpler terms or contract. If you follow the rules, you're golden.
If an employer calls you back and you are refusing to go back because you want the unemployment, you will lose it either way..they dont really have a fight to put up. Once they call you(at least in Wisconsin) you have to go back. If you turn down available work, you no longer qualify for unemployment, so they won't get it either way. So, once that calls made to an employee they only have 2 choices 1. Lose unemployment but go back to their job or 2. Lose unemployment AND their job.
My take with the PPP is 75% expenses of my business are for rent/utilities/health care, 25% is payroll, what a paradox eh?. And for my employees, the EDD benefit combined of the state and the fed for each employee is like three times the regular pay for NOT working, but that understandable for their health concerns. They can milk this one six month out when I have up to end of June to reestablish the payroll. See the devil of the whole "stimulus" as what they are for small business?
I got all the way through to signing on the PPP. Couldn’t do it! Couldn’t help but think to myself “what if something happens and I don’t get it forgiven?” I’m an s.p., only applied for $8k. Was looking at $455 a month extra to have to pay 7 months from now for 2 years. That is, if they decided not to forgive my loan when it comes time to apply. Too risky IMO.
Those payment terms are wild. If my business is dried up and died after this 8week period, according to what I read, my loan would likely not be forgiven. Unbelievable. I actually thought the government might actually help guys like us out. We are all on own, in this way.
Eight weeks isn't nearly enough to entice most employees back only to be let go again. Make it 26 weeks to at least match the UI benefits duration. Don't know what the numbers would look like but it sure would give a better sense of security for both the employee and employer (and the economy). And take a more South Korean approach for dealing with this pandemic that's been severely exaggerated.
Did you go thru a full EIDL or the Cares-Act EIDL? The full EIDL has(had) a higher loan amount. They capped it at $15k max once the Cares-Act EIDL's started to come thru.
I filed my 2019 tac through credit karma. On the IRS website it shows my tax accepted, but when I checked the portal it states undetermined. I do not owe child support.
@@G-bit88 giid to know ... since you work in the bank do i need a business account and business license ( as independent contractor ) and i have account already can i just open a business account and happy or doesn't work that way? .thanks
Thanks for the info - well done. I have applied and will sign at the last possible hour in order to maximize the benefits. I am looking at this as a LOC and do not plan to touch money other than exactly what is defined for forgiveness. When I am comfortable knowing what will be forgiven I plan to pay off the loan. I need to balance the timing with the unemployment. It may not be all that much unless the 8 week period is extended. It is a gamble at this time no matter how you look at it!
Just to clarify as you mentioned 1099 contractors, PPP cannot be used to pay 1099 people and count towards the forgivable loan. They must be w-2 employees.
Kevin, I see the same questions asked over and over that I know have been addressed in your other videos and I see subscribers replying with incorrect info. So....are the following statements correct... 1 If you are a 1099 subcontractor you can use the PPP to replace your weekly check and that's your payroll forgivable amount? 2 If you are paying subcontractors, the reason you can't get PPP $$ to pay them is because they are eligible to apply for PPP on their own? If I take my 2019 1099 and divided it by 12 then that would be my average monthly payroll cost. Multiply that by 2.5 would be the eligible amount. Once funds are received then just write myself a check 1/8 of the amount for the next 8 weeks and all should be forgiven? Love your videos but can never remember what video I saw each answer on.
This will wreck a lot of small businesses! That's why on my channel I talk about staying lean, systems and processes to avoid times like these. Keep the content coming!
Great info thanks... But can you tell us what we all have been wondering every video?! What mic are you using (super clean sounding) and what are all those neon lights in the background looks really cool!! THANKS!!!
Wow, you're amazing on this stuff Kevin. I really like the idea of the separate bank account, I'll do that in the next few days. I'll have my accountant run payroll through that account, and all the tax impounding that applies specifically to forgiveness. I'll pay my rent on that account. I'll aim to have head count back to 7 (where we were Feb 15th) by end of June. And I'll apply for forgiveness right on the mark. Kevin, you are smaaarrrrtttt on this stuff and you make the videos fun with a great conversational style - thank you!
My friend told me they just got the EIDL loan this AM. They have an S-corp. Directly deposited to the account. No news on PPP yet. Thanks for your guidance.
Thank you so much.. This was very informative and helpful. HELP: I'm sole-proprietor, no employees, just me. The question that I haven't found the answer to anywhere. I made a significantly larger amount of money during the past 12 months as compared to my 2019 schedule C income so I used the past 12 months and supporting bank statements when calculating the loan amount because it made me eligible for a much larger PPP Loan. Now that I have that loan how do I calculate how to forgive the loan because I can't go based on that Line 31 since it doesn't accurately reflect how the loan was calculated and how large my average monthly payroll is. (I would assume the answer to this question would also greatly help people that started their business sometime within 2019 and weren't in operation for the entire year as well).
Such a great video and wonderful advises! I believe if you are a self employed regardless of asking for a loan like PPP or anything else, having a separate business account to keep track of business related expenses is a mush have. Now with that being said, with the information on this video which is almost covering everything a loan applicant needs to know in advance, I am pretty sure that based on my loan contract and the amount I borrowed and the nature of my business, I will be qualified for hundred present loan forgiveness after two weeks period. If you think of anything less than hundred present, ask yourself at least twice if you really need to accept this offer!
@David Kellogg the "corporate veil" isn't dependent upon your running payroll or not; if you take regular distributions from your LLC, it is used in lieu of payroll when applying for the PPP. Which is why I eventually consulted with a Certified Public Accountant about applying for the PPP.
My LLC was set up by my attorney, the Operating Agreement was drawn up by her, and there has never been any co-mingling of funds ever. I think I'm good, thanks.
He's treating these loans like a dodge. These loans are life preservers for small businesses that are in desperate need. They are not for con artists trying to make a quick buck off a crisis. People like Kevin are the reason there is not enough money to go where it is actually needed. I hope when this is over and an accounting is made, people act like Kevin are burned down hard.
I'm hearing that the advance portion of the EIDL, ($1000 for example; 1 person Sole-Prop) is actually going to go against the PPP you ask for. So if your PPP is $6000 and you get a $1000 advance with the EIDL you will actually only get $5000 from the PPP. Any thoughts on this?
The comment at 5:15 about employees don't want to come back b/c they prefer collecting unemployment benefits is incorrect b/c the condition of getting unemployment benefits is that the person has to be looking for work. By rejecting offer to come back they would make themselves ineligible for unemployment benefits.
Eaton Zhou those aren’t the rules of covid unemployment you don’t have to look for work. However I’m not sure about refusing to return to work at their own job that is probably true.
Kev This is a real executive level training thanks. And BTW what I would do as a simpleton doing the separation, I would invoice the separate account with Itemization that the loan re emburses and keep that file for the IRS to see and the bank.
Small Biz owners were the few Americans whom were close to somewhat of freedom. Not thrilled about these dependencies on “loans” in which in the first place it was the idea and small funding not funding with no idea that made us work.
When the loan is applied for, they ask for the average payroll. In every case I've heard of, this included all payroll expenses, including Federal taxes. However, it appears that when spending the loan proceeds, all Federal taxes (both employer share and employee withholding) are excluded from covered payroll expenses. This can be, roughly, 20%(+/-) of the total payroll expense for an employer. Since the loan can be up to 2.5 times average payroll expense and 75% must be spent on covered payroll expense within the 8 week period, that means that a business must either pay their employees more or hire new employees in order to meet the 75% threshold. If the statements above are correct, the employer cannot meet the 75% threshold by paying the same wages that were used to qualify for the loan. If true, this will be a rude awakening for many small businesses who expected loan forgiveness.
@@PerryUnlikely yea for sure. But he did make a valid argument in the video explaining that the loan would have to be paid back in 1 or 2 years, which would make the minimum payments very high, so that's the negative part of all
Is the $15,000 max advance just an advance or is it the max amount of EIDL now? The original limit to the EIDL was $2million loan and we need this higher amount to help cover other costs aside from payroll. The letter that is sent approving the $15,000 says it is a loan advance but I cannot get any info on if a greater loan will be available above the $15k plus the $10k grant. Thank you for any insight on this one.
I filed within days part time unemployment my friends who filed full-time unemployment are already receiving their 600 and I am not biggest inconsistency yet how come the state has been issuing $600 back payments for days and some haven’t received anything my weekly allotment for North Carolina unemployment is $17
Okay, serious question. Do I have to rehire my headcount, the day/week I get the loan money, or can I rehire after? Let's say I get the loan money May 15th and an employee is getting PUA until May 30th, can I hire them back June or do I have to hire them back May 15th?
Hi Kevin. Can you explain this better. 16. Question: How should a borrower account for federal taxes when determining its payroll costs for purposes of the maximum loan amount, allowable uses of a PPP loan, and the amount of a loan that may be forgiven? Answer: Under the Act, payroll costs are calculated on a gross basis without regard to (i.e., not including subtractions or additions based on) federal taxes imposed or withheld, such as the employee’s and employer’s share of Federal Insurance Contributions Act (FICA) and income taxes required to be withheld from employees. As a result, payroll costs are not reduced by taxes imposed on an employee and required to be withheld by the employer, but payroll costs do not include the employer’s share of payroll tax. For example, an employee who earned $4,000 per month in gross wages, from which $500 in federal taxes was withheld, would count as $4,000 in payroll costs. The employee would receive $3,500, and $500 would be paid to the federal government. However, the employer-side federal payroll taxes imposed on the $4,000 in wages are excluded from payroll costs under the statute.2 2 The definition of “payroll costs” in the CARES Act, 15 U.S.C. 636(a)(36)(A)(viii), excludes “taxes imposed or withheld under chapters 21, 22, or 24 of the Internal Revenue Code of 1986 during the covered period,” defined as February 15, 2020, to June 30, 2020. As described above, the SBA interprets this statutory exclusion to mean that payroll costs are calculated on a gross basis, without subtracting federal taxes that are imposed on the employee or withheld from employee wages. Unlike employer-side payroll taxes, such employee-side taxes are ordinarily expressed as a reduction in employee take-home pay; their exclusion from the definition of payroll costs means payroll costs should not be reduced based on taxes imposed on the employee or withheld from employee wages. This interpretation is consistent with the text of the statute and advances the legislative purpose of ensuring workers
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@Meet Kevin, just want to let you know that I contacted my mortgage servicer about deferring my mortgage, here is what they responded, " If your loan is federally-backed, you are NOT eligible for deferment under the CARES Act. However, if your mortgage loan is not backed by the federal government you may be eligible for other options like deferment." This doesn't make sense to me. Want to know your comments.
This was very important information for us to know. I am literally doing my application right now, so this was extremely helpful. Wish I could use your 32% off coupon code and some of my PPP loan to purchase your real estate investment course, but I don't think that would qualify as an eligible expense.
Hi, I am an independent contractor. I am filling out the PPP application with the bank and I am wondering if I can list my health insurance I buy from Healthcare.gov (marketplace) and my payments to my Roth IRA? Also, I don't have any business rent, mortgage, utilities, so I don't need the 25%. If I only use 75% of the loan to pay myself, will those 75% be forgiven? Or do I have to spend the complete 100% to be considered for forgiveness?
Kevin, do you know whether or not a cell phone bill (like through Verizon, Sprint, etc.) would be considered a utility with respect to the allowable utility expense for the PPP?
Are there different lenders having different requirements? I just applied for the PPP with my lender and 1099 workers definitely not covered by the PPP. I think that's the original intent of the CARE Act because their Q&A section definitely clarified 1099 workers do not count as payroll expenses. I ended up only qualified for a small amount because I only have 2 W-2 employees. And most of my payroll expenses are on 1099 workers.
Which, realistically, is complete bullshit. I have people that work full time but WANT to be 1099, and they make big money - all 5 of them. And it makes it so I don't qualify but for a little bit of money. I know dozens of ppl on the same boat.
@@Floridaman8783 I think their intention is so we can stop paying them. And then they have to apply for the PPP for themselves as independent contractor/self-employed. I do think fake 1099s are much easier to fabricate than w-2 workers so the possibility of fraud if they let employers count 1099 is high and difficult to verify. Just my opinion, I don't have any evidence to support that claim.
It appears lenders are adding there own paper work. I went to Sba the day it was announced started filling out their apps in preparation. A week or so later the banks had it. My lender threw a curve ball and wanted a bunch of extra paperwork filled out. A friend of mine experienced similar at different lender.
Lisa Simpkins sounds like your cpa just doesn’t want to do any work. If you qualify and can meet the terms for loan forgiveness, it’s free money from the government.
4 года назад+1
The problem of paying back half the loan is not gonna be hard for people like you who have 2 employees and on of them is the owner. I mean are you gonna tell me that with monthly payroll of 40k you are gonna have a problem paying of 2k a month. The problem is for bigger small businesses that have maybe a 100 employees. And in my opinnion getting half of whatever for free is better than 0 is better especially in your case when you know you will not fire anyone. But I do agree businesses should consider if maybe just letting employees go and then rehiring when they can is better than the alternative
Yes, but only for a single employee unless the LLC is a partnership. A sole prop can only have 1 employee listed even if both husband and wife own it. If you file a schedule C whoever's name is on it is who/what qualifies.
Madhouse Fifi my bank, to calculate my PPP loan amont, wanted to see my EMPLOYEE W2 payment summary (“941” I think). My contractors or myself didn’t matter. Just how much was my vanilla plain ‘ole W2 payments
Thanks Kevin. That was an immense amount of clear and useful information. As far as the EIDL grant is concerned, If someone with no employees but themselves put 0 in the box on the EIDL application instead of a number 1 for themselves as an employee, will they still qualify for at least the $1,000. grant? Because they are still considered an employee as the owner, sole proprietor or independent contractor. I hope my question is clear. Thanks in advance for answering.
But Chase just sent out a letter saying they are out of funds! You can thank the house. they denied the extra 240billion. Unless they delegate 25b for essential workers for hazard pay. Which I am all for but If they’re not out of work wondering how they’re going to put food on the table!!..
I just talk with the bank they said they would only provide the funds for payroll PPP nothing else. Banks take the terms and make them used for them-self.
I'm thinking of starting a landscaping business should I use the ppp? Never had a business before and want to work for myself your opinion would be much appreciated thanks kev
If you owe back rents for your business, can you use the 25% non payroll money to pay those rents? Also, can you choose when the loan starts? For example, if the loan starts May 1 and the business cannot reopen until June 1 due to shelter in place, do you have to accept the loan when the SBA approves it?
Kevin. overall great content. However, I think you are making an error regarding the PPP. Independent contractors DO NOT qualify as "employees" for the purposes of the payroll calculations. Indendent contractors themselves may apply for PPP for their own purposes. However, an employer who has 1099 independent contractors and pays 1099 independent contractors may NOT include this as their payroll. This issue is addressed on the SBA FAQ download from their website as Question #15.
I really appreciate all the videos you’ve been dropping! I’m in college and I’ve never been so knowledgeable I feel scammed for paying for a college degree where I learn more from your channel! Thank you
College is definitely a scam. But the non educational things you get from it, are invaluable. Expensive lessons learned though.
Agree, Kevin does a great job!
Depends on what degree you're seeking. Trying to become a health care professional like a nurse or physician - college is the only way. Trying to become a small business owner - it's more dicey to see the return on investment.
@@JM-gu3dw Well done! I think nurses and doctors must be paid with a dozen of such stimulus checks!
Get you paper, avoid debt like the plague and continue to search for knowledge.
May the odds be forever in your favor.
I'm Canadian so this content doesn't apply to me but if it did, wow, Kevin has done his homework.
Hey. Please note that the rule isn't 75/25. The rule is at least 75% of the loan must be used for payroll
and
up to 25% for other expenses (phone, storage rent). You could actually spend 100% of your loan on payroll.
Yep this threw me off as well, you can use it 100% for one of the qualified expenses and it'll be fine.
@@TheAbrahamHD No the only expense where you can use 100% of it is payroll costs. Not any of the other expenses.
@@regibson23 That's not what their calculator told me. I put in that I would use 100% of it for lease/rent and it said 100% would be forgivable. I don't have employees, only independent contractors and I don't run as an S-Corp so I literally cannot use it for payroll costs, and I was told that is fine. Do you mind providing a source that verifies your information?
@@TheAbrahamHD at least 75% has to be for payroll expenses.
@@TheAbrahamHD Well then their calculator doesn't take into account the 75/25 rule.
Anyone else watching this thinking the market is gunna drop hard when all the consequences from these loans become more apparent? The stimulus is being praised as a savior for the small businesses but I guess it’s really just pushing back the bankruptcies.
The reality is that it's not ever going to be enough unless they do a stupid big stimulus package. I feel like 70% of small businesses will go bankrupt in the following months. My clients (small businesses in my local area) have all dropped me, I know their financials and they're not going to be able to get through 2 more months of this unless they're in the unlikely scenario where they lived frugally and saved the majority of their income. I know for a fact that the only way they will survive is if business goes back to usual in the next 30-50 days, and everyone is spending just like before the pandemic.
@@TheAbrahamHD Great answer! I am in insurance and I am scrambling to re arrange premiums so people can afford them.....We have not even seen the beginning of the downstream effect. This has ramifications of a great depression. Also one has to look at the massive debt load carried by nearly all Americans-this is scary. I didn't believe in stimulus packages before but I do now. Yes I realize they are only printing money, but they may to forgive a lot of debt across country. This is borderline apocalyptic.
This could destroy The FED, would be ideal as far as I am concerned. But starting over will be hard. When I was in the military we had a saying that it will "be like turning an aircraft carrier around.....it takes a long time and great effort. Remember we this " is over" business will be slow to come back I would guess 30% wont even come back.
They will carry less employees and be very cautious....I dont see people spending those checks on superfluous things...We are in this deep for a long time. Look out for subprime no credit check loans etc etc
@@wilsmith6551 yes you're right. I hope the fed loses its power to interfere with capitalism if it all goes to shit. We haven't began to see how bad this is like you said, a lot of businesses including me will have to start over. I dont have a lot of overhead so bankruptcy isnt an issue for me, I can get by with unemployment and maybe side gigs after that runs out. If this takes way too long to recover from (and it will, your illustrative example is spot on) I may not be back in business until all these small businesses recover and people are spending again. It's tough but fortunately my debt is less than $25k and I can get by with $1.5k/month. Printing money right now (even if it's a horrible solution) is a great investment for the government to get the economy back up to how it was for small business owners. Sectors of our economy will be obliterated and some are already seeing the effects of it while the majority still haven't.
The Abraham HD true. Over 1/5 of small businesses(mostly mom and pops shops) have already shut down
And I'll be prepared to buy stock
You're grinding those videos
What a pro!!!
I wondering if it is due to a bunch of factors: increase of viewership bc the virus, lost of revenue from real estate, not being able to show houses lol. I too would take the time to churn them out
he's got nothing else to do! lol the whole world is on lock down
Dont hate guys. Just appreciate the content. Every one on youtube is doing more videos because of increased viewership. But what about the quality stuff he's putting out tho?
I'm sure he has a great team
@@gerardofunez9610 no one's hating, just conversating lol. I LOVE the content
I've been sharing these videos almost on a daily. Thanks for the information. I work at a bank and nobody really gets what they are getting into. It's really scary. I almost feel like I should prepare to be out of a job in 6 months when no one can pay these back!
Sounds like playing with fire for many people’s businesses. As with many other things in life, this is going to ruin a bunch of people who don’t educate themselves on how to do this right.
@@manictiger Yep i said this a few days ago, Noticed how over 60m people do not qualify for the stimulus? How were dependants supposed to have predicted a pandemic? Yet, this makes them ineligible to receive help during tough times, Lets not even get into those who owe child support etc.
First time in your channel, living in Poland and here only probably because of Luis Rossman videos about PPP, but you explained all of that perfectly to even me, non-native English speaker. Good Job.
Kevin, I like free money, too...but free money doesn't like me 😟
Bc you haven't found the loop holes in the system
@@Mansour-O-Killuminati have you?
@@TheAbrahamHD Just have to know how to scam other people and find the right people to scam. That is all....
@@TheAbrahamHD yes I do ask my accountant...
I like this guy he explains things very well. I asked my banker and attorney a question regarding this loan they both emailed me articles from the internet one from Forbes another from Facebook of all places..smh As it turns out I qualified for PPP as an SP but I canceled my application it isn't worth it to me.
C Bell can you explain further?
If you have any payroll next 8 weeks or thru June 30th this is a no brainer. If you don't have documented wages or deal drugs then yeah it wont work.
You definitely qualify as a sp I don’t see why you wouldn’t want it at such a low interest rate
Thanks for content Kevan. All good stuff. During this time all my business friends have been baffled on how this whole system works. Your channel has inspired me to create a channel centered around helping sales professionals and businesses alike during this time to get through all the madness. Keep the good fight going!
Hello Kevin, as usual thank you for painting such a very candid picture of what’s involved with the PPP loans. The information you provided will certainly help me make a wise decision as to whether or not to apply for the loan.
My employer is being investigated for fraud. My employer hasn't paid anyof his employees what he owed, he skipped 2 pay periods, he closed down the office, and sent a group text stating he's waiting to for his PPP loan to be approved so we can be paid. I had a feeling he's strategically taking advantage of the PPP to cover his prior debt at theexpense of his workers. This must be happening to millions of people and nobody seems to talk about it. I advise everyone to revise and thinkabout what you're doing and don't play monopoly with your employees money.
People: don't rely on this guy's youtube video when deciding what's best for you and your business. PPP loan is plain and simple. I've never seen simpler terms or contract. If you follow the rules, you're golden.
You're my favorite channel right now. Shhh...Don't tell Graham!
If an employer calls you back and you are refusing to go back because you want the unemployment, you will lose it either way..they dont really have a fight to put up. Once they call you(at least in Wisconsin) you have to go back. If you turn down available work, you no longer qualify for unemployment, so they won't get it either way. So, once that calls made to an employee they only have 2 choices 1. Lose unemployment but go back to their job or 2. Lose unemployment AND their job.
Thanks for mentioning the pitfalls - it's SO important to plan to spend this money on the right things!
Anyone else having to watch 2 full-length fricking ads (2mins+) before watching youtube videos now???
My take with the PPP is 75% expenses of my business are for rent/utilities/health care, 25% is payroll, what a paradox eh?. And for my employees, the EDD benefit combined of the state and the fed for each employee is like three times the regular pay for NOT working, but that understandable for their health concerns. They can milk this one six month out when I have up to end of June to reestablish the payroll.
See the devil of the whole "stimulus" as what they are for small business?
Woohoo! Another day with 4 videos uploaded in 24 hours! Great productivity man!
I got all the way through to signing on the PPP. Couldn’t do it! Couldn’t help but think to myself “what if something happens and I don’t get it forgiven?” I’m an s.p., only applied for $8k. Was looking at $455 a month extra to have to pay 7 months from now for 2 years. That is, if they decided not to forgive my loan when it comes time to apply. Too risky IMO.
Same. The uncertainty over the next few months seemed to high of a risk to finance payroll for a closed business.
Same. I’m passing on the PPP unfortunately 😞 I can’t afford to have that come back and bite me. Sole prop LLc myself.
Those payment terms are wild. If my business is dried up and died after this 8week period, according to what I read, my loan would likely not be forgiven. Unbelievable. I actually thought the government might actually help guys like us out. We are all on own, in this way.
Eight weeks isn't nearly enough to entice most employees back only to be let go again. Make it 26 weeks to at least match the UI benefits duration. Don't know what the numbers would look like but it sure would give a better sense of security for both the employee and employer (and the economy). And take a more South Korean approach for dealing with this pandemic that's been severely exaggerated.
We got the money today! 250 G's BABY!!!!!!!!!!!!!!!
Did you go thru a full EIDL or the Cares-Act EIDL? The full EIDL has(had) a higher loan amount. They capped it at $15k max once the Cares-Act EIDL's started to come thru.
@@trentslusher317 We did the forgivable PPP for small business which gave us 2.5x monthly payroll.
Congratulations
Beware the fine print
Brett Shoemaker - Personal Finance yeah. I got 140k today
I filed my 2019 tac through credit karma. On the IRS website it shows my tax accepted, but when I checked the portal it states undetermined. I do not owe child support.
Super important to understand the fine print/requirements on these stimulus programs. Thanks again Kevin!
You should bring up the banking processing fee! The banks are going make a killing off these loans.
????? Part of the plan eh
Sam Jones
The banks are getting processing fees from the fed. As high as 5%
If you paid a bank processing fee you got robbed. I work for a major bank and know for a fact we didn’t charge to process these apps.
@@G-bit88 giid to know ... since you work in the bank do i need a business account and business license ( as independent contractor ) and i have account already can i just open a business account and happy or doesn't work that way? .thanks
Report7777 if you are sol proprietor you only need your social and name. No other formation docs .
Thanks for the info - well done. I have applied and will sign at the last possible hour in order to maximize the benefits. I am looking at this as a LOC and do not plan to touch money other than exactly what is defined for forgiveness. When I am comfortable knowing what will be forgiven I plan to pay off the loan. I need to balance the timing with the unemployment. It may not be all that much unless the 8 week period is extended. It is a gamble at this time no matter how you look at it!
#1 make sure your credit isn't FROZEN when you apply! I made that mistake
Your delivering the greatest value on your tube right now!
Just to clarify as you mentioned 1099 contractors, PPP cannot be used to pay 1099 people and count towards the forgivable loan. They must be w-2 employees.
Correct. Only W-2
Kevin, I see the same questions asked over and over that I know have been addressed in your other videos and I see subscribers replying with incorrect info. So....are the following statements correct...
1 If you are a 1099 subcontractor you can use the PPP to replace your weekly check and that's your payroll forgivable amount?
2 If you are paying subcontractors, the reason you can't get PPP $$ to pay them is because they are eligible to apply for PPP on their own?
If I take my 2019 1099 and divided it by 12 then that would be my average monthly payroll cost. Multiply that by 2.5 would be the eligible amount. Once funds are received then just write myself a check 1/8 of the amount for the next 8 weeks and all should be forgiven?
Love your videos but can never remember what video I saw each answer on.
Chase basically told me 2 days ago they were out of money
This will wreck a lot of small businesses! That's why on my channel I talk about staying lean, systems and processes to avoid times like these. Keep the content coming!
Great info thanks... But can you tell us what we all have been wondering every video?! What mic are you using (super clean sounding) and what are all those neon lights in the background looks really cool!! THANKS!!!
Wow, you're amazing on this stuff Kevin. I really like the idea of the separate bank account, I'll do that in the next few days. I'll have my accountant run payroll through that account, and all the tax impounding that applies specifically to forgiveness. I'll pay my rent on that account. I'll aim to have head count back to 7 (where we were Feb 15th) by end of June. And I'll apply for forgiveness right on the mark. Kevin, you are smaaarrrrtttt on this stuff and you make the videos fun with a great conversational style - thank you!
My friend told me they just got the EIDL loan this AM. They have an S-corp. Directly deposited to the account. No news on PPP yet. Thanks for your guidance.
Got mine deposited today as well no ppp yet
Nazif Gashi interesting. I got my PPP but haven’t heard a peep about EIDL. And I applied for EIDL online 3/29
Thank you Kevin. Great content. You are so clear and thorough.
I get worried when I see Kevin in a suit. It means something is serious.
Yo homie, your videos are fire 🔥🔥🔥. Kev, keep it up!
Thank you so much.. This was very informative and helpful. HELP: I'm sole-proprietor, no employees, just me. The question that I haven't found the answer to anywhere. I made a significantly larger amount of money during the past 12 months as compared to my 2019 schedule C income so I used the past 12 months and supporting bank statements when calculating the loan amount because it made me eligible for a much larger PPP Loan. Now that I have that loan how do I calculate how to forgive the loan because I can't go based on that Line 31 since it doesn't accurately reflect how the loan was calculated and how large my average monthly payroll is. (I would assume the answer to this question would also greatly help people that started their business sometime within 2019 and weren't in operation for the entire year as well).
Such a great video and wonderful advises! I believe if you are a self employed regardless of asking for a loan like PPP or anything else, having a separate business account to keep track of business related expenses is a mush have. Now with that being said, with the information on this video which is almost covering everything a loan applicant needs to know in advance, I am pretty sure that based on my loan contract and the amount I borrowed and the nature of my business, I will be qualified for hundred present loan forgiveness after two weeks period. If you think of anything less than hundred present, ask yourself at least twice if you really need to accept this offer!
I just found Meet Kevin this weekend. Wow, what awesome content!
I have a single-member LLC but no formal payroll so I didn't apply for the PPP. It looked like a lot of stress.
@David Kellogg the "corporate veil" isn't dependent upon your running payroll or not; if you take regular distributions from your LLC, it is used in lieu of payroll when applying for the PPP. Which is why I eventually consulted with a Certified Public Accountant about applying for the PPP.
My LLC was set up by my attorney, the Operating Agreement was drawn up by her, and there has never been any co-mingling of funds ever. I think I'm good, thanks.
He's treating these loans like a dodge. These loans are life preservers for small businesses that are in desperate need. They are not for con artists trying to make a quick buck off a crisis. People like Kevin are the reason there is not enough money to go where it is actually needed. I hope when this is over and an accounting is made, people act like Kevin are burned down hard.
Kevin, love your channel. A question: does the company need to retain the same amount of head count for the full timer only? Or including part timers.
I'm hearing that the advance portion of the EIDL, ($1000 for example; 1 person Sole-Prop) is actually going to go against the PPP you ask for. So if your PPP is $6000 and you get a $1000 advance with the EIDL you will actually only get $5000 from the PPP. Any thoughts on this?
Man that's good stuff! Thank you, I'm a Lyft driver and that's a lot to consider 🤔question, can you count water, Smud, and PG&E as part of utilities?
The comment at 5:15 about employees don't want to come back b/c they prefer collecting unemployment benefits is incorrect b/c the condition of getting unemployment benefits is that the person has to be looking for work. By rejecting offer to come back they would make themselves ineligible for unemployment benefits.
Eaton Zhou those aren’t the rules of covid unemployment you don’t have to look for work. However I’m not sure about refusing to return to work at their own job that is probably true.
Eaton Zhou for this case (covid19) you dont have to look for a job.
Keep em coming Kevin!!!! ❤️💚💛
Kev This is a real executive level training thanks. And BTW what I would do as a simpleton doing the separation, I would invoice the separate account with Itemization that the loan re emburses and keep that file for the IRS to see and the bank.
Small Biz owners were the few Americans whom were close to somewhat of freedom. Not thrilled about these dependencies on “loans” in which in the first place it was the idea and small funding not funding with no idea that made us work.
Professional, impressive and great business attire too!
When the loan is applied for, they ask for the average payroll. In every case I've heard of, this included all payroll expenses, including Federal taxes. However, it appears that when spending the loan proceeds, all Federal taxes (both employer share and employee withholding) are excluded from covered payroll expenses. This can be, roughly, 20%(+/-) of the total payroll expense for an employer. Since the loan can be up to 2.5 times average payroll expense and 75% must be spent on covered payroll expense within the 8 week period, that means that a business must either pay their employees more or hire new employees in order to meet the 75% threshold.
If the statements above are correct, the employer cannot meet the 75% threshold by paying the same wages that were used to qualify for the loan. If true, this will be a rude awakening for many small businesses who expected loan forgiveness.
Think twice about taking the money
A capitalist saying he likes free money , gotta love it
its at 1% so regardless its ridiculous NOT to take the money even if you have to pay it back
DanielZar I can understand that perspective
@@PerryUnlikely yea for sure. But he did make a valid argument in the video explaining that the loan would have to be paid back in 1 or 2 years, which would make the minimum payments very high, so that's the negative part of all
Does this apply to your newer video talking about ppp ?
Is the $15,000 max advance just an advance or is it the max amount of EIDL now? The original limit to the EIDL was $2million loan and we need this higher amount to help cover other costs aside from payroll. The letter that is sent approving the $15,000 says it is a loan advance but I cannot get any info on if a greater loan will be available above the $15k plus the $10k grant. Thank you for any insight on this one.
Great video! However, because the terms of the loan are harsh and due diligence is exhausting, doesn't make the loan a scam.
This is really an informative video.
I filed within days part time unemployment my friends who filed full-time unemployment are already receiving their 600 and I am not biggest inconsistency yet how come the state has been issuing $600 back payments for days and some haven’t received anything my weekly allotment for North Carolina unemployment is $17
Channels been growing like crazy
Love your suggestions!
Yeah but how legal is that line where they can "sue you" if you don't pay it back. I call FUD
I entered "Shareholder" distributions in my payroll compensation along with W2 salary, SEP IRA payments and health insurance premiums.
You hit it out of the park!
I am starting to watch this channel. The other channel I am watching during this pandemic is Dr. John Campbell.
Okay, serious question. Do I have to rehire my headcount, the day/week I get the loan money, or can I rehire after? Let's say I get the loan money May 15th and an employee is getting PUA until May 30th, can I hire them back June or do I have to hire them back May 15th?
Thanks Kevin .this on very informative. Better survive without government help .
Thanks for the details.
Hi Kevin. Can you explain this better.
16. Question: How should a borrower account for federal taxes when determining its payroll costs for purposes of the maximum loan amount, allowable uses of a PPP loan, and the amount of a loan that may be forgiven?
Answer: Under the Act, payroll costs are calculated on a gross basis without regard to (i.e., not including subtractions or additions based on) federal taxes imposed or withheld, such as the employee’s and employer’s share of Federal Insurance Contributions Act (FICA) and income taxes required to be withheld from employees. As a result, payroll costs are not reduced by taxes imposed on an employee and required to be withheld by the employer, but payroll costs do not include the employer’s share of payroll tax. For example, an employee who earned $4,000 per month in gross wages, from which $500 in federal taxes was withheld, would count as $4,000 in payroll costs. The employee would receive $3,500, and $500 would be paid to the federal government. However, the employer-side federal payroll taxes imposed on the $4,000 in wages are excluded from payroll costs under the statute.2
2 The definition of “payroll costs” in the CARES Act, 15 U.S.C. 636(a)(36)(A)(viii), excludes “taxes imposed or withheld under chapters 21, 22, or 24 of the Internal Revenue Code of 1986 during the covered period,” defined as February 15, 2020, to June 30, 2020. As described above, the SBA interprets this statutory exclusion to mean that payroll costs are calculated on a gross basis, without subtracting federal taxes that are imposed on the employee or withheld from employee wages. Unlike employer-side payroll taxes, such employee-side taxes are ordinarily expressed as a reduction in employee take-home pay; their exclusion from the definition of payroll costs means payroll costs should not be reduced based on taxes imposed on the employee or withheld from employee wages. This interpretation is consistent with the text of the statute and advances the legislative purpose of ensuring workers
Nothing is ever truly free. Not even freedom itself. Everything has a price.
goldsrt4 especially freedom
Jesus Christ paid for the sins of whole world! Salvation is a free gift of God through Jesus Christ! Believe in Jesus Christ and you shall have everlasting life! Get a king james bible and believe.
Read John.
Read 1 John chapter 4.
The PPP will probably not be forgiven. At least my lender was pretty adamant about that. They told me expect to have to pay it back 99%
Seriously? Who was that!
Yeah I wonder who's that too?
@Meet Kevin, just want to let you know that I contacted my mortgage servicer about deferring my mortgage, here is what they responded,
" If your loan is federally-backed, you are NOT eligible for deferment under the
CARES Act. However, if your mortgage loan is not backed by the federal government you
may be eligible for other options like deferment."
This doesn't make sense to me. Want to know your comments.
Nicole Law Nicole Law try this @Meet Kevin
Thank you!!
Pure Gold Kevin! 👍🏻👊🏼
Keep them coming 👍👍👍
Thank you!!
Thank you great info
This was very important information for us to know. I am literally doing my application right now, so this was extremely helpful. Wish I could use your 32% off coupon code and some of my PPP loan to purchase your real estate investment course, but I don't think that would qualify as an eligible expense.
Wow, good explanations, got all my answer
Great content, as always
Hi, I am an independent contractor. I am filling out the PPP application with the bank and I am wondering if I can list my health insurance I buy from Healthcare.gov (marketplace) and my payments to my Roth IRA? Also, I don't have any business rent, mortgage, utilities, so I don't need the 25%. If I only use 75% of the loan to pay myself, will those 75% be forgiven? Or do I have to spend the complete 100% to be considered for forgiveness?
Great content!!
Wow. that was pretty awesome. Thank you
Kevin, do you know whether or not a cell phone bill (like through Verizon, Sprint, etc.) would be considered a utility with respect to the allowable utility expense for the PPP?
here's the big question
Mortgage interest* you cant pay your principle with the PPP loan
Good info 👍
Are there different lenders having different requirements? I just applied for the PPP with my lender and 1099 workers definitely not covered by the PPP. I think that's the original intent of the CARE Act because their Q&A section definitely clarified 1099 workers do not count as payroll expenses.
I ended up only qualified for a small amount because I only have 2 W-2 employees. And most of my payroll expenses are on 1099 workers.
Which, realistically, is complete bullshit. I have people that work full time but WANT to be 1099, and they make big money - all 5 of them. And it makes it so I don't qualify but for a little bit of money. I know dozens of ppl on the same boat.
@@Floridaman8783 I think their intention is so we can stop paying them. And then they have to apply for the PPP for themselves as independent contractor/self-employed.
I do think fake 1099s are much easier to fabricate than w-2 workers so the possibility of fraud if they let employers count 1099 is high and difficult to verify. Just my opinion, I don't have any evidence to support that claim.
It appears lenders are adding there own paper work. I went to Sba the day it was announced started filling out their apps in preparation. A week or so later the banks had it. My lender threw a curve ball and wanted a bunch of extra paperwork filled out. A friend of mine experienced similar at different lender.
My CPA told me - if it walks like a duck, quicks like a duck then its a duck! Don't do it ! (PPP
I would fire that person immediately.
Lisa Simpkins sounds like your cpa just doesn’t want to do any work. If you qualify and can meet the terms for loan forgiveness, it’s free money from the government.
The problem of paying back half the loan is not gonna be hard for people like you who have 2 employees and on of them is the owner. I mean are you gonna tell me that with monthly payroll of 40k you are gonna have a problem paying of 2k a month.
The problem is for bigger small businesses that have maybe a 100 employees. And in my opinnion getting half of whatever for free is better than 0 is better especially in your case when you know you will not fire anyone. But I do agree businesses should consider if maybe just letting employees go and then rehiring when they can is better than the alternative
Great video!
Husband & wife LLC with no employees (just 1099 subs as needed), can they count draws or payments to themselves as payroll?
Yes, but only for a single employee unless the LLC is a partnership. A sole prop can only have 1 employee listed even if both husband and wife own it. If you file a schedule C whoever's name is on it is who/what qualifies.
Madhouse Fifi my bank, to calculate my PPP loan amont, wanted to see my EMPLOYEE W2 payment summary (“941” I think). My contractors or myself didn’t matter. Just how much was my vanilla plain ‘ole W2 payments
Thanks Kevin. That was an immense amount of clear and useful information. As far as the EIDL grant is concerned, If someone with no employees but themselves put 0 in the box on the EIDL application instead of a number 1 for themselves as an employee, will they still qualify for at least the $1,000. grant? Because they are still considered an employee as the owner, sole proprietor or independent contractor. I hope my question is clear. Thanks in advance for answering.
I think so, it's been addressed on here and a few other forms in the comments section. I did the same thing.
@@eastmanresearch3143 Thank you, Eastman Research.
Great videos!
But Chase just sent out a letter saying they are out of funds! You can thank the house. they denied the extra 240billion. Unless they delegate 25b for essential workers for hazard pay. Which I am all for but If they’re not out of work wondering how they’re going to put food on the table!!..
I just talk with the bank they said they would only provide the funds for payroll PPP nothing else. Banks take the terms and make them used for them-self.
Unless your an airline company.....
Still no response from the govt, screw them!
I'm thinking of starting a landscaping business should I use the ppp? Never had a business before and want to work for myself your opinion would be much appreciated thanks kev
Just don't fall for it if you can weather now and hope for a sharp V curve back. I am optimistic, all will be back with a bang this summer
If you owe back rents for your business, can you use the 25% non payroll money to pay those rents?
Also, can you choose when the loan starts? For example, if the loan starts May 1 and the business cannot reopen until June 1 due to shelter in place, do you have to accept the loan when the SBA approves it?
Great info
Kevin. overall great content. However, I think you are making an error regarding the PPP. Independent contractors DO NOT qualify as "employees" for the purposes of the payroll calculations. Indendent contractors themselves may apply for PPP for their own purposes. However, an employer who has 1099 independent contractors and pays 1099 independent contractors may NOT include this as their payroll. This issue is addressed on the SBA FAQ download from their website as Question #15.