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News Flash: New PPP Forgiveness Formula for Sole Proprietors & LLC s Deadline Approaching

Were you a sole proprietor, LLC or independent contractor that was not able to participate in the Paycheck Protection Program because you did not have a significant profit from your business?   If so, you might have the opportunity to access up to around $20,000 in PPP grant (forgiveness) money (up to about $30,000 if you run a restaurant).  But you may only have days to apply for these funds.

The SBA has just released a new PPP forgiveness formula that uses revenue reported on your 2019 or 2020 Schedule C (line 7) rather than net profit (line 31).  In a nutshell, you can now count your revenue as the basis for forgiveness just like employee wages (to a maximum of $100,000/yr).  Engage your accountant in the details.

Please review the scenarios in the attached PDF “Revenue-Based PPP Formula”  to see how this works in practice.

The new PPP application form and SBA FAQ document is also attached for your review.  There are other program requirements of PPP that still apply such as:

  • having been in operation on February 15, 2020
  • documentation of income using tax statements
  • if you use revenue of more than $150,000 as your loan basis you will need to certify to the SBA that Current economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant”.

Businesses that are taxed by the IRS as C-Corporations, S-Corporations and Partnerships are not eligible to use the gross income calculation method for calculation the PPP loan amount.  Only businesses that use Schedule C to report their income and expenses to the IRS are eligible.

It appears that these new rules are not retroactive – if you have already received a 2nd round PPP loan you cannot resubmit under these rules.  These rules should be available for anyone who has not gotten a PPP loan, or has only gotten a 1st round loan.

If you are interested, you should apply as soon as possible.  The special small business-only application period expires next Tuesday (March 9th) and the overall deadline for applications is March 31, 2021.  The new stimulus bill going through congress does not significantly increase PPP funding, except for a new program for restaurants.

Since this form was only published on March 3 the banks – where you apply – may not have updated their systems.  Applying could be a chaotic experience and you will want to research multiple options.  You may want to try and reach a customer service representative on the bank’s PPP program.  It is possible that some of the “FinTech” funders like Biz2Credit and Bluevine might be faster off the mark than local banks.

To move forward, download these PDF files… 

  1. PPP Application
  2. Revenue-Based PPP Foregiveness Examples
  3. SBA Changes to PPP Rules


 

WorkSource Kitsap Can Help You Solve Your Hiring Needs.

WorkSource Kitsap is hosting a Virtual Job Fair for Kitsap County businesses that have positions open. The event is set for 30 March 2021, from 10 a.m. until 2 p.m.

Please complete the interest form via the link below. Once complete, we will register your business on Brazen.com where you will complete your “virtual booth”. We will hold weekly information sessions to offer assistance for the setup of the event.

Limited booths available. We have 50 booths that can host multiple staff from your company. Again, this is not a link for job seekers, that will come in the following week.

This link will lead you to a fillable form to express interest in participating.

SBA Prioritizes Smallest of Small Businesses in the Paycheck Protection Program

Steps to Promote Equitable Relief for Mom-and-Pop Businesses

Building on a month of strong results, the Biden-Harris Administration and the U.S. Small Business Administration are taking steps with the Paycheck Protection Program to further promote equitable relief for America’s mom-and-pop businesses. 

The latest round of Paycheck Protection Program funding opened one month ago and already the Biden Administration has succeeded in making major improvements to the program’s implementation:

  • For businesses with fewer than ten employees, the share of funding is up nearly 60%
  • For businesses in rural communities, the share of funding is up nearly 30%
  • The share of funding distributed through Community Development Financial Institutions and Minority Depository Institutions is up more than 40%

Continue reading

Bainbridge Approves Business Recovery Grants

City of Bainbridge Island Council Plans Grants to BusinessesIt’s official! The much-rumored, oft-mentioned COBI small business grants are now coming soon.

Get ready – applications for business assistance grants will become available in association with KEDA (the Kitsap Economic Development Alliance) starting on Friday, March 12.

Businesses may receive between $5,000 and $10,000 based upon their COVID-19 financial impacts and the number of total applications received by the City.

The unanimously-approved Business Recovery grant program will provide $210,000 to support Bainbridge Island businesses recovering from the COVID-19 pandemic. Continue reading

Washington State Department of Commerce — Business & Worker Update

FEB. 10,  2021

The Business and Workers update is a weekly newsletter providing news and information to help businesses and workers navigate the COVID-19 pandemic. The information is compiled by the state Economic Resiliency Team (ERT), part of the Joint Information Center.

What you should know about…

COVID-19 Response

The importance of testing

Vaccine may be in the spotlight right now, and while it’s a crucial tool to eventually help us overcome the pandemic, it’s not the only tool we should be using. We are still relying on things like wearing masks and getting tested to ensure our success in overcoming this pandemic, and we’ll need to keep doing so over the next few months.

Testing is a critical and essential part of the overall COVID-19 response. Identifying and isolating people who have COVID-19, and quarantining those exposed to the virus, are necessary to understanding, responding to, and stopping the spread of infection. Assuring equitable and widespread access to testing with rapid turnaround times for results remains a priority. For us to successfully stop the spread of the virus, it is critical for people to get tested when they have symptoms or when they have been exposed to someone suspected of having COVID-19.

Testing remains a priority. Please, encourage your family and friends to get tested if they’ve been exposed, or if they have symptoms. For more information about testing in Washington state see the state Department of Health’s (DOH) testing page, their updated statewide testing strategy and their testing location resources.

Continue reading

Roadmap to Recovery: Kitsap Moving to Phase 2

Governor Inslee announced Thursday that the Northwest Region and four other regions will move to Phase 2 beginning on Monday the 15th, allowing several more groups of businesses to open with 25 percent capacity, including restaurants for indoor dining. Businesses must still adhere to COVID-19 safety measures, such as wearing masks and staying at least 6 feet apart.
As a quick reminder: Here is what is allowed under Phase 2 guidelines:
  • Retail stores: 25% capacity
  • Personal services: indoor maximum 25% capacity
  • Eating/Drinking establishments: indoor dining 25% capacity, end alcohol service/delivery at 11 p.m. Outdoor/open-air dining available, maximum six per table, limit two households per table

For more details on who can do what in which phase, please click HERE.

Continue reading

Inslee Announces COVID Tax Relief for Businesses

On Monday, February 10, 2021, Gov. Jay Inslee signed legislation providing tax relief for businesses impacted by the COVID-19 pandemic. SB 5061 will also increase minimum unemployment benefits for workers and provide significant tax relief for businesses over the next five years, to support recovery from the economic impacts of COVID shutdowns. The legislation passed with strong bipartisan support in both chambers.

More details click HERE

Licensed Commissary Kitchens in Kitsap County

Provided by the Kitsap Public Health District

Commissary kitchens that are approved to allow outside food businesses to use their kitchen are licensed by the Health District. Each commissary kitchen is different; therefore, the food handling steps which can be accommodated by each kitchen differ. First, identify which food handling steps your operation includes, then use the table below as a general guide to determine which kitchen suits your business model. Once you reach an agreement with a facility, complete the Commissary Kitchen Agreement with them and submit the agreement with your packet.

Keep in mind that commissary kitchen amenities could change, and changes may not be reflected in this table. For instance, a kitchen that currently offers overnight food storage may stop allowing their customers to store food overnight at any time. Your chosen commissary kitchen and your proposed business operation will be evaluated together to ensure they are a good fit.

To see the list of kitchens and the services they provide, click here.