How Do I Sign Louisiana Banking Form

How do i industry sign banking louisiana form myself

hey everybody jamie troll here your favorite cpa financial literacy coach and profit strategist and i have some important updates this is breaking news right now i'm recording this at night time march 3rd 2021 we just got some new guidance and this guidance specifically relates to uh what was announced last week around the fact that pvp they were going to change the calculation for self-employed people for um for people who were independent contractors and the like right so we've been waiting for actual guidance to see exactly what this was going to look like what's the calculation going to look like how is it going to work and we finally have it so they came out with a new interim final rule there are a couple new applications out there now so i wanted to talk it through these changes with you so you knew whether or not this impacted you and how it would impact you so let's get right on into it the major changes include the fact that now schedule c filers and they have clarified within this guidance this relates to schedule c filers only so if you are a partnership if you are an s corp if you are a c corp this does not apply to you this is only to people who file a schedule c that includes sole proprietors um and llcs who are non-s corps so that would be most people who would consider themselves self-employed independent contractors etc you file a schedule c with your typical tax return okay so this applies to you it applies to you whether you have employees or you don't as long as you are filing on a schedule c s that was something we were waiting for confirmation of looks like it does apply to those who have employees too although the calculation is a little bit different so what's changing well let's take it back to where we were right let's go back and previous to this since april of last year the application uh when you would apply your loan amount would be calculated based off your schedule c line 31 which is net profit plus your revenue minus your expenses right so that's the amount that's left at the end of the day that's the amount you could take divide by 12 multiply by two and a half to get your the amount that you could get as a loan to pay yourself with that what was what was considered owner pay so if you had employees you added that on to your payroll for your employees to figure out what it would be or if you were self-employed without employees you would only use that amount so that's how we've been doing it for a long time however there was concerns around that because of the fact that a lot of people who file a schedule c maybe have a very small net profit maybe they're even negative and that could be driven by a couple of things that could be driven like think by things like maybe you took a lot of depreciation in one year it could be a lot of reasons that you have a low or no net profit which would make you ineligible to really be able to get anything out of the ppp program and so to remedy that now they're saying you can get it by using gross receipts instead of by using um your net profit so that's line seven is what they're going with which is essentially money that came into your business less your cost of goods sold for the most part and that's your gross receipt so line seven now divided by twelve times two and a half now in either case one thing that hasn't changed is it still maxes out to pay yourself you can get twenty thousand eight hundred and thirty three dollars maximum you might get less but twenty thousand eight hundred thirty three dollars maximum why is that the calculation well it's because they max you out at a hundred thousand dollars so if your net profit previously was over a hundred thousand you already got twenty thousand eight hundred and thirty three dollars that's how you could have calculated it previously um same thing applies with gross receipts so if it's over a hundred thousand it's gonna cap it that hundred thousand which is gonna calculate out to twenty thousand eight hundred and thirty three dollars okay so that hasn't changed so if you already got your pvp loans or you're in the process of applying and you already have a net profit over a hundred thousand dollars this wouldn't change anything for you now real quick let's talk about people who are employers if you have employees how does this work right so if you have employees you're gonna take your you can calculate your payroll for your employees the same way using your 941s right you're going to calculate out what two and a half months worth is of that and then to figure out your owner pay you're going to take that line seven and you're going to subtract a couple of other lines on your tax return so the other lines that you are going to subtract are line 14 19 and 26 so this again this is only if you have w2 employees you're going to subtract you're going to take line 7 minus line 14 19 and 26 then you're going to take that number up to a max of a hundred thousand divided by 12 times two and a half and that's the owner pay that you'll add on top of the amount you were gonna get for your employees okay i'm gonna give you a link here at the end to actually go see this interim final rule so you can read this it's a little bit easier to read than it is to uh listen i'm sure and and really um understand what i'm saying so i always recommend that you guys actually read the guidance because i think it can help you really understand what's going on in a deeper way so i'll show you where to find that here at the end but that's how it's gonna work now a lot of you guys right now are probably asking okay great cool but like does this apply to me if i already got a ppp loan can i go back and retroactively get more if you would have gotten more by using gross receipts unfortunately guidance confirms as of right now no you cannot um right now it's saying basically there's no mechanism to go back and to increase those loans whatever if you've already had your loan approved and by approved i believe that means getting an sba e-tran number if you've already gotten that even if you haven't been funded yet there's not really anything you can do so that's the unfortunate thing is that this is really coming back on the people who were on it and who were um you know really trying to to get in there and needed the cash and got in there and got the got their loans and now they can't go back and get more and it is unfortunate now if you already got a first draw under one way and you're eligible for a second draw meaning you have that 25 drop in gross receipts for one quarter of 2020 versus one quarter of 2019 then you can use the new rules for that but again if it's not for loans that have already been applied for at this point so i know that sucks and that's not what people want to hear uh if this is something that would make a really huge difference to you it doesn't hurt to call your congressperson and let them know how you think and what you really think about this change and how it could impact you if they made it retroactive i think they're doing this for a few reasons i think it's partially because of the time frame it's only through march 31st they've only got roughly 140 billion dollars of funding left which seems like a lot and it is but they would not have enough to go back and give everybody back to gross receipts more than likely so they are probably trying to avoid all of that and just simplify it it would also be a massive strain on the banks to to be able to accommodate those changes so i think that's why they've decided that they're not going to go back and do that but it is unfortunate i know for a lot of you guys but if you're applying in the future this can apply to you um a couple other things to mention they you can use the loan for the same things right six at least 60 payroll um most everything else is pretty similar to what we already knew about ppp the one thing though that jumped out at me in here that i wanted to point out to you guys is that let's flash back again we're gonna flash back back to april 2020 again remember that when you are doing this loan application there is a line on it that says essentially that you are sorting certifying to the fact that uh the loan is necessary given economic uncertainty so you have to have to sign off on that when you're applying for the loan now back in april 2020 everybody lost their minds on this because they worried that wait a second hang on are they going to come after me and audit me and am i going to have to show them that i needed the loan and then are they going to tell me that i could have pulled from my savings or something else right are you going to get in trouble for taking these loans out and so what they did at that time was they put this new safe harbor rule in that said as long as your loan was under 2 million dollars you would be assumed to have made that um certification in good faith meaning that you meant what you said that you needed the loan and that they're not going to go search out unless there's some other reason for them to believe that there's fraud involved right they're not going to necessarily go search out and audit these uh to find people uh and pick apart their situation and tell them that they shouldn't have gotten a loan so that gave us all a little bit like okay we feel better now well let me tell you now with these new rules they've taken that away for people who apply using gross receipts line seven now with the new the new guidance if you apply and your line seven is above 150 000 that safe harbor does not apply to you they will be auditing a subsection at least of those loans and you should be prepared if you are applying within with a gross receipts number of above 150 000 you should be prepared to tell them why it was necessary due to economic uncertainty okay so all that is to say make sure that you are paying attention to what that line is i probably wouldn't to be honest unless you know you can support it apply using gross receipts if your your line seven is above 150 thousand dollars i would either use net profit or use a different year so remember you can use 2019 or 2020 when you're making this calculation so you want to kind of keep these things in mind what these triggers are going to be when you decide what you're going to apply using but if that is over that amount i would think twice why are they doing that well it's a fraud prevention technique because they want to prevent people who shouldn't be getting additional money from getting it right so i think the thought process there is well if you are making that much money right if you have that much in gross receipts in your business then you probably have access to capital through other ways maybe some savings etc etc that you could tap into this pvp loan is probably not uh necessary to you whether that's true or not i feel like it's a it's a very broad brush to paint and a very random line to draw but i just want to make sure that you're aware of that because that could be impactful when you're making a decision about how to apply for this loan okay last thing i want to do is actually jump into the treasury website with you and show you exactly where you can find this information as well so we're now looking at the treasury website just go to treasury.gov right now this is what it looks like you're going to go to read more under the coven 19 relief and go to assistance for small businesses learn more and then you're going to have this treasure trove of information about ppp so you're gonna see under for borrowers i would make sure that when you're looking at things on here you're looking at the most relevant information the most updated information so right now because it's the third of march that is anything that says the third of march or round about that time frame so you can see now that they have a new um second draw for uh application for people using gross income and then they have one this is the first draw so these are the two application forms again you're gonna go through your bank to apply but these are essentially the questions your bank is going to be asking you so it may be worth it to get familiar with that and then uh when you scroll down on here like i said there's a lot of information so feel free to look around they have updated recently the frequently asked questions that might be useful and then also down here at the bottom interim final rule on loan amount calculation and eligibility originally posted 3 3 20 21 that's the interim final rule i'm talking about here so this is one that's worth a read i know it's 32 pages but it's worth a skim through at least to find the information that you need there's a lot of really great information about this specific change to gross receipts in here so i want to make sure that you are using this and reading through this to understand all the rule changes and like i said you can continue to monitor in here because you're going to get see any new information that's been released is going to be in here now i would be careful using you know things that are way old so some of this stuff is back from april of 2020 probably not overly impactful at this time has probably changed six ways over um so look for the most recent information when you are looking at this website okay guys so hopefully you found that helpful i wanted to get this information out as soon as possible because i know so many people are trying to make decisions on what to do i do recommend that you take some action though we've only got a couple of weeks left at this point of this program being open right now for the next call at seven days until i believe march 9th all the applications are blocked for only um people who have 20 employees or less so if that's you you might want to go ahead and get that application started you can still apply after march 9th it's not a problem but it's going to be open to other businesses as well i do think you're going to want to get your hat in the ring as quickly as you can these are taking longer so don't wait until the last second and then be upset when you miss out go ahead and apply apply apply make sure that you find a bank that's taking it based on gross gross receipts gross income if that's what you are planning to apply based off of okay um so hopefully that was helpful come and uh join us in my group i have a facebook group jamietrill.com forward slash group we're having all of these discussions over there about what banks to apply with what experiences people are having any updates on these things um you can go to facebook and just search for financial literacy for women business owners that's another way to find it and i'll link it below as well also make sure to subscribe to this channel because it makes me feel like you're giving me a big giant hug and that you enjoy the stuff that i'm giving you and then you also don't miss any updates so anyway thank you guys have a wonderful night i'm going to bed you