PPP 1 Loan Forgiveness For Self Employed Via NEW SBA Portal | Step by Step Instructions
Step by step instruction on how to apply for your PPP loan forgiveness via the new SBA PPP Direct Forgiveness Portal if you got your PPP loan as a self-employed, independent contractor, sole proprietor, or single-member LLC. This new SBA PPP loan forgiveness portal makes the PPP loan forgiveness application for self-employed faster. If you cannot apply for PPP forgiveness as an independent contractor via the new SBA PPP forgiveness portal then you are going to have to apply for PPP loan forgiveness for self-employed via the bank or lender that provided your PPP loan funds.
This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Freedomtax Accounting and Multiservices Inc. are providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Freedomtax Accounting and Multiservices Inc. or its members cannot be held liable for any use or misuse of this content.
Hello from Freedom Tax Accounting for an accounting firm where we have been providing quality tax and accounting services now for over 20 years. In this video, we’re going to show you step by step, how to do your PPP one forgiveness application via the new SBA PPP forgiveness portal. Now if you have been following our channel, you’ll know that earlier this week, we posted a video of exactly this topic, but we put that video down and deleted that video from my channel because other people were having a lot of questions. Maybe there were some parts of that video that confused other people. So, I wanted to do another video so I can be more clear on how to do the PPP forgiveness application via the SBA direct forgiveness portal.
Now Important to note:
Who is this video for? because there are many different types and causes of PPP clients and scenarios so important for you to know who this video is for this video is if you only got PPP one and you up and you got your PPP loan as a sole proprietor, independent contractor, or self-employed meaning that you got your PPP loan with your 2019 or your 2020 Schedule C okay. So, if you got PPP one and PPP to this video is not for you, okay, I will be doing another video for people who got both PPP loans and how to apply for forgiveness. If God permits, we will do that later this week. So once again, I want to be very clear. All right, this video is for self-employed independent contractors, sole proprietors, single-member LLCs who got only PPP one and that they can apply for PPP forgiveness via the new SBA PPP direct forgiveness portal. Alright, so let’s go into the steps.
Now before we go into the steps, this is our contact information because a lot of you are asking that they will like us to do their PPP forgiveness process and yes, we are providing the PPP forgiveness as a service. This is our contact information; you can contact our office and schedule your initial consultation and we will gladly help you do your PPP loan forgiveness application. Okay.
Now, basically, the first step to apply for PPP forgiveness via the SBA direct forgiveness portal is to check if the bank or lender that gave you the PPP loan is participating on the new SBA portal. Why? Because not every bank or lender is participating in the SBA portal. The big banks are not participating with the SBA portal Bank of America, Chase, Wells Fargo most of these big banks are not participating in the SBA portal and you have to apply for PPP one forgiveness via your bank portal. Okay.
Now, how do you check if your bank or lender is participating in the SBA direct forgiveness portal? Basically, go to the SBA website that says the SBA website homepage, you scroll down you go here to “Access PPP” you click there. Here you scroll down. So, here at the right word says “PPP forgiveness” click there. You scroll down, and here it says “list of participating direct forgiveness”. When you click there, it will take you to this page and when you download this file, it’ll give you the list of almost 900 banks that are participating on the new SBA PPP forgiveness board.
Now, if the bank or lender that gave you the loan is in that list, you can apply via the SBA. If it’s not on that list, you have to apply for PPP with your back, okay. Now, how do you know? If you’re a bank? How do you find out the bank that gave you the loan? The easiest way is to find your SBA note. This is a document that you should have signed before you got your PPP loan. And in this SBA note here, where it says lender, this is whatever name appears here, this is the bank that gave you your PPP loan. Okay. And once that if you apply through Womply, you can just go inside the Womply portal, and it gives you the name of your bank or lender. Okay.
Now, once you find out that your bank is participating in the new SBA portal for forgiveness, then once you need to go to the portal page, how do you get there, once again, you go to the SBA homepage, scroll down, click PPP, scroll down where it says, “PPP long forgiveness”, you click there, you scroll down. And here it says, see where it says our portal, you click “our portal”. And this is the new SBA PPP direct forgiveness portal page.
Okay, so the first step is that you need to create an account in the portal. To do that, you click this blue button that says register to start your request, you click there. And then basically, it tells you to sign up. Here, you’re going to create your username, you’re going to put your email address, you’re going to create a password, you’re going to confirm your password. You put this CAPTCHA here, where it says entered text from the image and you click Sign up. When you do that, you’re going to get this message saying to verify your email address. So, you’re going to get an email that looks like this. See, where it says greetings from the SBA PPP direct forgiveness portal, and they’re going to provide you a link. When you click that link. It says confirm email address. And this is going to tell you please confirm that this is your email address for this username. You click confirm, then they’re going to make you set up the SMS2 factor authentication. Basically, this is another security measure where you’re going to get a code via text. So here we say your phone number, put your cell phone number here, you click “Verify”. And you’re going to get a seven-digit code via text message. That seven-digit code. In the next step, you’re going to put the token via SMS. This is where you put the seven-digit code that you got via text message. And you click “Verify”. Once you click “Verify”, this is where you log in to your portal. This is the SBA PPP forgiveness portal, basically the homepage of the portal. Okay, here to start your PPP forgiveness process, you click this blue button here where it says start a new forgiveness request, you click that blue button. Then basically here you’re going to put your social security number, your ITIN number or if you applied for PPP through an LLC, here, you’re going to put your LLC EIN number, okay, here you’re going to put the PPP loan amount that you received. All right, so once again, here you put your social, your ITIN or your LLC ci n. And here you put the PPP loan amount that you received. You click Find loan.
Now, when you click “Find loan”, you may get several messages. One of the messages may say that the cover you still have not completed your at least eight-week covered period. And that’s important because, in order to apply for PPP forgiveness via the port, at least eight weeks have to have passed from the date you got the funds in the bank. If eight weeks have not passed, then you have to wait till a later date to do this process. Another message that you may get is that the bank that gave you the loan is not participating in the SBA portal if that if you get that message that means that you cannot apply for PPP forgiveness via the portal from the SBA and you have to apply for forgiveness via the bank or lender that gave you the PPP okay. But if you go here and click find a loan and it takes you to this page that means that yes, the SBA has your information and your bank is participating in the SBA portal, okay.
Now, this information here is automatically filled out for you because basically, this is the information that the SBA has on your file here is going to tell you your business legal name, if you’re a self-employed or independent contractor, you’re going to find your name here. Here’s going to say your DBA here is going to confirm your social, your ITIN or your EIN here is going to have your phone number and your business address. So just confirm that this information is correct.
The next part is going to ask you for a title, the title and once again, if you’re self-employed independent contractors’ sole proprietors, single-member LLC, that title that you’re going to choose from this drop-down menu is sole proprietor title. Here you’re going to put your name, your email, and all this other information is pre-filled out for you okay.
Basically, this is the information that the SBA has on your PPP application. Here is the first draw: Make sure they assess the first draw because the first draw is PPP one. The PPP loan amount is going to show you the PPP loan amount that you received. Here is going to tell you the date that the PPP has been deposited into your account then is going to tell you your covered period start date, the covered period start date is the date that you receive the funds, and here is going to ask you the covered period that you want to choose here, they’re going to give you three options, eight weeks, eight, between eight and 24 weeks and 24 weeks.
Now, if you applied for PPP as a self-employed, independent contractor, single-member LLC and you did not have employees on the payroll, we highly recommend that you choose that 24 weeks okay. But if you do have payroll then call for a consultation because this may affect the or PPP loan forgiveness amount, okay, but for most of you yes, you choose the 24-week option okay. Here’s going to give you the end of the covered period depending on the number of weeks you choose the employees at the time of loan application once again if you’re a self-employed independent contractor, sole proprietor, single-member LLC without employees on payroll then you put one when you applied for PPP and here you put one also one employee which is yourself okay. So, you put one and one if you do not have employees on payroll right.
Now here is the amount of loan spent on the payroll here, you put the complete loan amount, and once again this is only if you did not have employees on payroll and you are the only person as a self-employed independent contractor single-member LLC or sole proprietor. Okay, so here you put your total PPP loan amount that you received. Here where it says, “Requested forgiveness amount” here, you’re going to put the PPP loan amount that you were eligible for. Now, in most cases, the amount that you got, this is the total amount that you’re going to request for forgiveness, okay. So, in most cases, this is going to be the same number. But how do you confirm what number to put here? You have to go to Schedule C that you used to apply for PPP one, you either apply for PPP one with your 2019, Schedule C, or your 2020, Schedule C. Okay.
Now you have to go to the Schedule C that you used to apply for and forget to apply for PPP. And you scroll down to like, the first option is to go to line 31. If you applied for PPP using line 31, then you take the number that appears on line 31, you divide by 12, and you multiply by 2.5. And that number is the number that you’re going to put down here. Now, if you were one of the lucky ones that we’re able to apply for PPP one using line seven of the Schedule C, then you take line seven of the Schedule C divided by 12. And you multiply by 2.5. And that number you put down here, okay, then, the next step is demographic details.
Now, this section is optional, you do not have to fill this out. If you don’t want to, just click Next. But if you want to fill it out, you put your name, you put here sole proprietor, you put if you’re a veteran or not, you put here your ethnicity, your gender, your race, and click “Next”. But once again, this is optional. If you do not want to fill this out, just click next.
Then basically is going to tell you if you need to upload certain documents. For most of you, no extra documentation is going to be required. If that’s the case, you’re going to get this message, see where it says, “No documents required”. If the SBA requires you to upload certain documents, this is where they’re going to tell you what documents they need you to upload. The SBA may require you to upload either your 2019, Schedule C, your 2020, Schedule C, we’ve seen cases where they want you to upload the complete 2019 personal tax return or your 2020 personal tax return, okay. They may even ask for a copy of a voided check. They may ask for bank statements, whatever they require, you’re going to find out in this step, if you need to upload something, you’re going to upload it down here where it says document uploader. You basically choose the file from your computer upload. And that’s it, but for most of you is going to say no documents are required. If it does say no documents required you you’ll scroll down and click Next.
Then basically it is going to give you a summary of what you have been filling out on this application is going to give you a summary of the business name, your ITIN, the SBA, the loan amount, basically, the contact information is going to tell you this is the loan amount that you are requesting. you confirm all of this is correct. And you go down and you click Submit and continue to electronic signature down here and this blue button. Once you click this blue button, it takes you to DocuSign, so you can electronically sign your PPP loan application or PPP loan forgiveness application. You click this little box here, so it will open this document to confirm that all the information here is correct. You click “Continue”. And you basically click the yellow spaces to sign this document electronically. Once you finish this step. It takes you to this page which basically tells you to thank you for submitting your request. And here you basically finish your PPP loan forgiveness application.
Now SBA, once you finish this part, you are going to get an email from the SBA saying that they have received your PPP forgiveness application. The SBA is saying that they can take up to 90 days to give you your answer of how much is going to be forgiven. Once you log out of this portal. You can log in periodically to the portal to check your forgiveness status. So, if you want to check your forgiveness status, you basically go to the SBA PPP direct forgiveness portal page and then this help area where you put your username and your password and when you log in to the portal on the bottom left here it gives you at which stage is your PPP forgiveness status app. So, here’s where you can check the status of your PPP forgiveness application okay and that basically you are done right.
Remember that if you need any help with your PPP loan forgiveness application, we are providing that as a service, this is our contact information you can call us to schedule your initial consultation. You can call us at this phone number or visit our website at freedomtaxfl.com. Okay.
So, basically, those are the steps if you got PPP one only if you got PPP one and PPP two, we will be doing another video shortly. And if you are also self-employed, independent contractor or sole proprietor, or a single-member LLC, this is whom this video is for okay.
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