2. Make sure you have the right kind of bank and correct bank information
Suffered economic loss greater than 30 percent as demonstrated by an 8-week period beginning on , or later, compared to the previous year. You will be required to provide the total amount of monthly gross receipts from to the current month-to-date.
I’m curious. Will they follow up with a request for weekly totals? Or are they going to stick with the broadest (and simplest) possible scope where they look at 8 weeks as two months.
What if your period of economic loss begins in the middle of a month? Will that https://americashpaydayloan.com/pawn-shops-co/ disqualify some who should otherwise be qualified?
Understand what they mean by gross receipts.
“Gross receipts” does not refer to those restaurant receipts that are covered in grease and food stains. While those are indeed gross, that’s not it.
Put real simply, for those of us who are gig economy contractors, that’s the money you received from Doordash, Uber Eats, Instacart, Uber, Lyft, Grubhub or other gig apps.
If you do other work, such as flipping merchandise on eBay or Amazon, gross receipts is what you received for your sales minus the cost of buying the items.
Note: If you had more than one schedule C, you’ll need to add up the gross revenue from all of them.
Get your finances organized.
If you haven’t been doing this so far, this is a good time to put it into a program that will give you a proper report. Chances are the SBA is going to ask for documentation of these monthly amounts.
A monthly profit and loss report. If you are using a program like Quickbooks, you can pull up a report and choose to show monthly columns. It would look something like this:
You can get this kind of report on Quickbooks Online or the Desktop version. Other programs like Freshbooks or Wave also have this ability. Even GoDaddy Bookkeeping will give you a monthly breakdown.
Some programs like Hurdlr and Quickbooks Self Employed will require you to run individual Profit and Loss statements for each month.
And then there’s Stride. Forget about it. There’s no reporting capability. All you can do is download the data and do the math.
If you had more than one schedule C, you’ll want to run your numbers for all of your businesses individually.
I don’t know yet if the PL statements will suffice. For that reason, I recommend you go ahead and get your bank records together now. Here’s what I would recommend:
- Download your bank statements for each month. If you had more than one bank where payments were made, download those as well.
- Highlight every payment that came in for the month.
- Make a list of the dates and the amounts of payments received for each month and attach that to your statement.
- Add up the totals and make sure they line up with your income reported on your 1099. Because if they don’t match up, you may have to provide an explanation.
The SBA makes a big deal of this in their email. They point out that one reason a lot of applications don’t get approved is because it’s impossible to transfer funds based on the information provided.
Whether this is a legitimate excuse or not, here’s the thing you have to understand: The SBA is overwhelmed trying to get all this processed. They’re having problems with the PPP program. They’re delayed on EIDL.
They don’t have the manpower to hunt down bad bank account information. Whether they should or not, that’s another discussion.