How Do I Sign Minnesota Banking Form

How do i industry sign banking minnesota form myself

hi my name is ela Halliwell I'm the CEO of hair story and I'm creating a series of videos to help hairdressers figure out how to navigate the cares Act and specifically focused on the PPP this video is designed for people who are self-employed our sole proprietors or independent contractors who do not have a corporate entity they don't have an S corp or a LLC they've been basically just working for themselves and have not created that extra entity people like you are going to have the biggest challenge with this process and it may force you to reconsider that strategy and that you may in the future decide that you want to create a entity there are a lot of benefits to creating your own little company and a lot of tax benefits as well so let me start by just talking about why the PPP is important and what it basically is here for the point of the PPP is to put money in the pockets of people like you who have been forced to not work during this coronavirus crisis and the the money is meant to help you pay for your lives and also to pay forward in the form of rent and to buy stuff and in in many cases it's also designed for in the words that you're going to see in the application are designed for people who have employees on payroll so that the company that applies is going to be able to pass that money forward to their employees this is where it gets tricky because it is meant to apply to you as well but you're gonna see it doesn't look like it is so the most important thing for you to know is that it they did create it with you in mind and you are supposed to get this money and you're just as entitled to it as anybody else so if you run into roadblocks you may have to find a bit more but the money is meant for you let me tell you what assumptions I'm starting off with here I'm starting off with the assumption that you do not have your own entity you're a sole proprietor an independent contractor or a self-employed person but you do have some way of tracking how much money you've earned you've got a way of tracking the money in so you have square you've got bank statements you can look at with regular deposits that came in you've got venmo some way to track the money that you have earned over time I'm also assuming that the money that you earned over time is active accurately reflected in your IRS tax statements right so you can't say that I only earned $4,000 a month and then now say actually I earn $7,000 a month they have to actually flip with each other so keep that in mind I'm also assuming that you pay rent of some form so you either write the chair or you rent a suite or you have your own space and you pay rent for the space and then the last assumption is that you were in business last year and if you weren't but you were in business as of Feb 15 then you're covered too it's just a slightly different process so do you qualify for the PPP the answer is yes you do and again fight for it because it's gonna be a little bit harder for you there's no collateral required there are no personal guarantees required and there are no credit checks I've not seen any mention of a credit check when can you apply you can apply as of April 10th so starting on April 10th you can apply all the way through June 30th how do you calculate the amount that you are able to take out as a loan well you're going to need to go and look at last year and look at all of the money that came in all of the earnings that you made through square or whatever it is you have to look at that total amount divided by 12 and come up with an average monthly income it's meant to be a proxy for payroll when you look at the form it's gonna say payroll what they're mean is the month of money that came in in in income and that is gonna be after any sales tax that you may have charged but it's before all the other expenses so it's not your profit not your net profit not your gross profit I would just say this is the income that I earned then you're gonna look at all any payroll taxes that you made so if you have any state taxes or anything else you had to pay it's not income tax it's gonna be the any I'm guessing you didn't pay payroll taxes but any taxes that you had and also any benefits that you have so if you have an IRA if you have signed up for Obamacare or any other health insurance all of those get to be added together and you can that together is going to be considered as your average monthly table you're going to take that number and you're going to multiply it by 2.5 in order to get to the loan amount that you are eligible for so let me go through an example let's say that your your income from services altogether in you want to include tips in here as well is $5,000 and then the tips are an extra thousand in my example here so six thousand dollars total you're gonna take that six thousand multiply it by 2 point 5 and you get $15,000 so $15,000 is the loan amount that you are eligible to get that's a lot of money how can you spend the money well you can spend it any way you want but if you want to have the loan forgiven you have to spend it in very specific ways to have that portion forgiven so you're gonna want to put yourself essentially pretend like you're paying yourself so I mean you probably need to to write yourself a check each month for the amount that you said was the average the average earnings that you had last year and you do that twice and the other thing that's important here is that you're gonna have to make sure that you do all of the spending in the first eight weeks you have eight weeks after you get the loan to spend the money and to haven't counted as forgiven anything that happens that you spend after eight weeks even if it's on the right category it's not gonna be counted as forgiven so you're gonna pay yourself money you're gonna pay your business rent right not your personal but if you read the chair if you rent a suite if you pay rent for a space that you have on your own that all counts as a forgivable expense if there any utilities I guess most booth renters don't pay for utilities but if you have your own space you may that counts and then if you own your own space and you have a mortgage on it you can count the interest on the mortgage that you pay so that eight-week period is the magic you have to spend the money quickly and the other thing to know is if you started taking unemployment you're going to have to go off of unemployment by April 26th in order to qualify for the forgiveness so you're not gonna be able to earn both unemployment and have this money forgiven it's one or the other so me do an example we went back and we said that you were earning $6,000 a month in total between the sales of your services and the tips that times 2 months is $12,000 let's say that the rent that you pay on a chair or a suite or your space is $1,000 a month that's another 2,000 so now we're at $14,000 your loan was for 15,000 so there's a thousand dollar difference and that thousand dollars will not be forgiven so what happens with it well it becomes a normal loan and there's no payment due on that loan for six months so there's a grace period the interest rate is incredibly low it's a see the 1 percent or 4 percent I can't really tell based on what I've read so far and it's going to to last for two years and at the end of the two years it means to be fully prepaid fully paid but I think a lot of people are gonna say I don't need this extra thousand dollars sitting around here and to worry about paying this London remembering so they're gonna want to prepay it and you can't repay it there's no penalty and you can be all them so where do you apply this is the tricky part you're supposed to apply through your bank and unfortunately I've already been hearing that a lot of independent contractors like you have personal bank accounts but you don't have a business bank account and that is something that the banks are using to make it harder for you to get the loan they're saying that they're only doing it for people who have a previous business account do not let them tell you that you need to fight and tell them that you are just as eligible for this loan as anyone else and they can't discriminate against you it's going to sometimes be a bit of a struggle but you should fight and fight and fight and fight some banks are even saying that if you haven't had a loan from us in the past that they're not gonna do it that's also total crap don't take that either advocate for yourself do not let yourself be discriminated against and and if you can't get it through that Bank there should be other SBA approved financial and financial institutions that will process your loan but it may be harder to find there take a while since you don't have a relationship that's all I have for you today the last thing that I want to say is that we have an online community that we've created called the breakroom and we just launched it two weeks ago it's it's a place for hairdressers to come together and grow personally and professionally and help each other and share and it's been just an incredible pleasure to to watch it and be part of it I'm I'd love for you to join there's the URLs gonna be put right here right right on the page I'll tell you what it is it's the - break - room dot mn/dot Co slash feed so please come join us in the break room posting this video there and all the other assets and all the other stuff I've found and good luck I hope you hope you stay healthy and good luck with this process thank you