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Need guideliness on PPP loan forgiveness for sole proprietors

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Contributor

Need guideliness on PPP loan forgiveness for sole proprietors

As I read the loan docs, there's nothing in them about loan forgiveness. Then when I look at the government's guidance on PPP loan forgiveness, there's nothing clear about how sole proprietors should document their "pay," which is often simply passed-through and commingled with our personal bank account. Does PayPal or anyone on the forum know how sole proprietors should document for PPP loan forgiveness? Would you sign loan docs that don't specify anything about loan forgiveness? 

 

We're concerned we might be opening ourselves up to paying for a loan (even if it's only 1%) that we aren't going to be able to "prove" payroll for. That would be pointless and cause needless paperwork.

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Contributor

Re: Need guideliness on PPP loan forgiveness for sole proprietors

Correcting myself on this question...I notice the first page of the loan doc mentions loan forgiveness. Still not clear how to document sole-proprietor's pass-through income. On Schedule C it's my profit. So does that mean all my profit from the business (what there still is), is considered documentation? Anyone have thoughts about this?

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New Community Member

Re: Need guideliness on PPP loan forgiveness for sole proprietors

Has anyone received guidelines on the documentation needed for the loan forgiveness

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Contributor

Re: Need guideliness on PPP loan forgiveness for sole proprietors

I'm returning the PPP loan I was awarded through PayPal. I used my self employment profit as my income guideline (sole proprietor with pass-through income), per the instructions. But my profit won't drop by 75% in the next two months. It will drop by that amount and more over the next six months, but the forgiveness period will be past by then. I wish I could have waited to start the loan. In fact, once I applied, I was shocked how fast it was approved and then placed directly into my bank account. I thought I might have some say in when it starts, but I didn't. So, I contacted PayPal about how to return the money. They sent me wire instructions. I'll return it, because the money doesn't help me right at this moment. Maybe there'll be another option in the future. I hear congress is pushing to allow companies to decide when the 8 week period starts, but it's too late for me. Good luck all! And thanks to PayPal for their fast response. It's just the rules of the game that are tripping me up.