First Draw Borrower Application Form for Schedule C Filers Using Gross Income U S. Small Business Administration

That income would be reported here, since it’s only tangentially related to your business. The IRS needs to confirm that you were the person actually earning the income, because if you weren’t, there are additional rules for claiming business losses. The other accounting methods won’t be applicable to most of you, but if you’re like Tony Stark and don’t like being kept in the dark, here’s where you can learn more. Schedule C is also where you report your business write-offs. Those are the work-related expenses you incurred during the year, like supplies, software costs, your cell phone bill, and more. If you are unsure about your PPP loan status, or if your PPP loan application has been flagged due to data anomalies, please contact your lender to get more information.

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Make the required representations and certifications and sign. Seasonal employers can use either period, or any consecutive twelve-week period between May 1, 2019 and September 15, 2019. If those conditions apply, the exponential functions employee has met the Safe Harbor requirements. Calculate the average number of hours paid per week, divide by 40, and round to the nearest tenth. For simplicity, you can choose to use 1.0 for anyone who works 40 hours or more, and 0.5 for anyone else.

For loans of $150,000 and below

1. This is the final amount of eligible forgivable expenses, accounting for any reductions due to not meeting the FTE or pay requirement.
2. Typically, utilities can only be claimed if you own, rent, or lease an office space, since your home office utilities will be reported elsewhere.
3. The average PPP loan amount so far has been $239,000, though the vast majority of approved loans (70%) have been for $150,000 or less.
4. If you don’t know where to find this number, speak to your lender—they’ll have it on file.
5. Hopefully, these changes will help more underserved small business owners get the financing they need to endure this pandemic.

If you’re claiming actual expenses, you can leave Box 44 blank. However, Boxes 45-47a/b must be completed for either method. This is where you can report miscellaneous income related to your business. For example, let’s say you’re ready to upgrade your computer, and you decide to sell your old one for some pocket cash.

They must provide the Schedule C, along with a 2020 invoice, bank statement, or other evidence to establish that they were in operation on or around February 15, 2020. All loan offers and qualifications require credit approval and are subject to change with or without notice. Everything you need to know about SBA 7(a) loans, all in one convenient location. Claiming the simplified method is the most conservative approach that will raise the least amount of scrutiny from the IRS. That’s a good thing, because nobody wants to be in the room when The Hulk learns he’s being audited.

Existing borrowers

Use the same information as on your PPP application unless the information has changed. In this guide, we explain each section and walk you through exactly how to fill out this form to get your loan forgiven. Get free guides, articles, tools and calculators to help you navigate the financial side of your business with ease. Receive information about upcoming SBA events, news alerts, and program updates.

If you side-hustle as a dog walker, this is where you’d report treats or whistles. This category can include anything from computer repairs to plumbing fees. Things like machinery, equipment, cars, and so on, must be reported as a fixed asset on Form 4562 and gradually depreciated over their useful lives. If you plan to claim depreciation on your vehicle, you’re required to use Form 4562 to disclose your car details.

There are certifications you’ll need to review and sign as well. There is an optional demographic questionnaire that will help SBA and others understand who got these loans. reconciliation crossword clue As with all PPP loans you will submit this form to your lender. Next, they changed eligibility rules to allow more business owners to qualify. This change enables entrepreneurs with previous non-fraud felony conditions and those who are delinquent or in default on federal student loan payments to qualify for PPP loan financing. Plus, it’ll take time for banks to implement these changes—leaving a narrow gap for sole proprietors to really take advantage of this opportunity.

Your lender can provide information about the progress of your forgiveness application. You should be able to see this in your bank records or in your online banking portal. On May 18, the SBA released the official form you’ll need to fill out in order to apply for forgiveness on your PPP loan, also known as SBA Form 3508. Bench simplifies your small business accounting by combining intuitive software that automates the what is accounts payable what is the process and what is included busywork with real, professional human support.