Womply PPP Loan Application Review – Fast Service But Be Careful
Womply is a great service to apply for a PPP loan if you are self-employed, an independent contractor, or single-member LLC. Schedule C filers that want to apply for the PPP 1 or PPP 2 can apply for their PPP loan via Womply, but they should be careful and make sure the information on the PPP loan application is correct.
APPLY FOR PPP VIA OUR WOMPLY AFFILIATE LINK – https://www.womply.com/ppp?rc=igoiyb
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.
Currently, if you are a schedule c filer that wants to apply for a PPP loan, we are recommending that you apply for your PPP loan using Womply that is an online lender service now we are recommending Womply because we have seen that for the last couple of weeks, they have been the fastest in getting the PPP loan approved, but we have also seen that you have to be careful. Because we have seen a Womply do several mistakes in the application process that if you don’t attend them, now you may get in trouble in the future. So, that’s what we are going to talk about in this video.
Hello from Freedom Tax Accounting, we’re an accounting firm where we have been providing quality tax and accounting services now for over 20 years. If you’re new to this channel we provide strategies for small business owners so they can achieve their financial goals. We are recording this video on April 19 2021, and we always emphasize on any video relating to the PPP program because this program is constantly changing, so there may be things we discussed in this video that can change as soon as tomorrow. So, that’s the importance of subscribing to our channel that way you’re always up to date with the most current and correct information relating to the PPP loan program.
Now if you are a schedule c filer, self-employed independent contractor, single-member LLC that wants to apply for the PPP1 first draw or the PPP2 second draw, we highly recommend that you use this website which is called Womply okay. We have been using Womply for the last couple of weeks especially for schedule c filers because we have seen that they are the servers that are processing the PPP loan applications fairly quickly compared to other lenders.
Now we only recommend wobbly at least that’s what we are doing here Freedom Tax we are using Womply only for self-employed, independent contractors, single member LLC’s basically any business does file schedule c and they want to apply for the PPP loan. If you are an s-corp or a c-corporation or a partnership we really don’t recommend Womply, we may recommend you using PayPal PPP or Bluevine. But Womply is a very good platform for all of you schedule c filers that want to apply either for the PPP1 or the PPP too because it’s impressive how fast they are processing the PPP loan applications. But we feel that they are doing it, so fast that we have seen that they are making several mistakes on the PPP loan application and if you don’t correct them fast enough then you may get into trouble later on in the future. So, we just wanted to share with you the most common mistakes that we have seen that the Womply platform is doing on the PPP loan applications okay.
So, the first thing you have to check is that when you apply for the PPP loan via Womply if you’re applying for PPP1 first draw Womply will send you via DocuSign this document, and it will say, “borrower application form for schedule c filers using gross income”. And one common mistake we have seen is that here on this box right here Womply is putting a number that’s higher that it is supposed to be. What number goes here? It is line seven on your schedule c. So, you need to take a look at your 2019 or 2020 because for PPP1 or PPP2, you can use either your 2019 schedule c or your 2020 schedule see. Obviously, you take a look at your schedule c, you go down to line seven and if you compare 2019 or 2020 whichever has a higher line seven, use that to apply for the PPP because you’re going to get a higher PPP loan.
Now confirm the number that’s on line seven because that’s the number that you use to apply for PPP using the Womply platform. But we have seen that for some reason even though in the application process in through Womply website you put the exact number that’s on line seven, for several applicants when you go to the application, they send you to sign that number should be here this number is higher; meaning that you’re going to get a higher PPP loan amount that you are eligible for. Obviously, if you get that higher amount of PPP that may sound like a good idea for now but the issue will come when you apply for forgiveness okay. Because when you apply for forgiveness, you will only be eligible for forgiveness for the amount of PPP that you are eligible for. So, if you get additional funds that you are not eligible for, then you have to be ready to either pay that money back or the amount that is not forgiven may become a five-year loan with the bank. So, that’s one common mistake we have seen okay.
Now the other thing we have seen that Womply is doing is that well the good thing about Womply is that if you want to apply for PPP1 and PPP2, Womply gives you the option to apply for both in one application. So, that’s good news. Now the thing is that always remember that if you want to take PPP2, you must meet the requirements. Remember that in order for you to be eligible for PPP2 your business needs to show at least a 25% reduction in revenue in 2020 compared to 2019 or a 2020 quarter compared to a 2019 quarter. You have to show at least 25% reduction in revenue. If you don’t know what I’m talking about watch this video which I am linking right now where we show you how to see if you are eligible to get the PPP2 okay.
Now the thing is that when you apply with Womply, they give you the option of applying for PPP1 and PPP2 at the same time. Let me show you, if you are applying for PPP1 they send you the PPP1 application and then a couple of days later they send you the PPP2 application which is this one which says, “Second draw borrower application form for schedule c filers,” So, if you see this application that says second draw here this is PPP2 application okay, but remember when you apply for PPP2 you don’t have to show evidence of the 25% reduction in revenue when you apply, but you will have to show the SBA and the bank the 25% reduction in revenue when you apply for forgiveness. And then our fear is that when you apply through Womply that you are applying for both at the same time Womply sends you PPP one application form which is this one you sign it and then a couple of days later you get this form as a docusign. And if you don’t read it correctly and if you get the second PPP application form before signing this document, make sure that you are eligible to get PPP2. So, be careful, make sure that you are eligible to get PPP2 because if you sign this and you are not eligible the bank is going to give you the PPP funds, but when you apply for forgiveness, your loan will not be forgiven because you did not meet the eligibility requirements.
Now another thing that we have seen that is happening through Womply and once again, Womply is a very good platform especially for schedule c filers. They are processing the PPP applications very fast, okay. But I think that you have to be careful every time you get a document before you sign it to make sure that it is correct. Now another thing that we have seen that is happening is that we have seen that people are applying for PPP1, and they already know that they are not eligible for PPP2 because they do not meet the requirements. And when they fill out the Womply application, they are choosing to apply for PPP1 only. In the Womply application, they are not saying that they want PPP2, they are telling Womply we are only applying for PPP1. And we have seen that even though you say you are only applying for PPP1, you do get the PPP1 application, and then when you sign it like two or three days later, they still are sending you the PPP2 application okay. That’s not right because you are not eligible to get the PPP2 loan all right.
So, basically, we just wanted to share this information with you. Once again, we feel Womply if you’re a schedule c filer if you’re self-employed independent contractor single-member LLC basically any business that files with a schedule c and wants to apply for PPP1 or PPP2, definitely do it through Womply because they are processing the applications faster than anyone okay. But be careful what you sign and check everything you are signing to make sure that the numbers are correct, and especially check if you are eligible to get the PPP2 before you sign any PPP2 application documents all right.
Thank you for watching this video. Remember, it is tax season, and we are a full-service accounting firm. We are authorized by the federal government to prepare personal tax returns and business tax returns for individuals and businesses that are located in any of the 50 US states.
So this is our contact information:
- Address: 1016 E Osceola Parkway, Kissimmee, 34744, Florida, United States
- Telephone: 407-502-2400
- E-mail: [email protected]
And remember that we are part of Freedom Group, we are a group of four companies where we do tax accounting.
So we can help you in many ways.
Thank you for watching this video. Remember to subscribe to this channel and if you have received value out of this information like this video and share it with someone that can take advantage of this information.
Thank you for watching. God bless you. Bye-bye.