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Daycare and Taxes All things related to Taxes and running a Daycare post here. Topics of tax exemptions, forms, filings, tax write offs, IRS etc.

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Old 07-09-2020, 01:58 PM
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tn0087 tn0087 is offline
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Default New to the PPParty... Can I take a lump sum?

With the new EZ loan form, it appears self employed people do not need to track weekly payroll amounts and, instead, forgiveness is determined by owner compensation. It also seems you don't have to wait for the entire forgiveness period before applying for forgiveness.

Does this mean that I can take my PPP loan amount (net 2019 income/12 * 2.5) as one lump sum and then apply for forgiveness under the 24 week forgiveness period immediately?
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Old 07-10-2020, 07:12 AM
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TomCopeland TomCopeland is offline
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Originally Posted by tn0087 View Post
With the new EZ loan form, it appears self employed people do not need to track weekly payroll amounts and, instead, forgiveness is determined by owner compensation. It also seems you don't have to wait for the entire forgiveness period before applying for forgiveness.

Does this mean that I can take my PPP loan amount (net 2019 income/12 * 2.5) as one lump sum and then apply for forgiveness under the 24 week forgiveness period immediately?
I wouldn't do it. I would recommend paying yourself weekly based on your average weekly profit from 2019. If you do this, you can ask for forgiveness after 11 weeks. There is no clear SBA guidance on this point, but it would be unreasonable to pay anyone in a lump sum.
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