What if you have two or more small businesses (LLC's)?
You may apply for a separate PPP loan for each business you own. However, if each business has the exact same owners, they will be considered affiliated. If your businesses are affiliated, the receipts will be added together. If one business had a loss and the other had a profit, it may impact your obtaining PPP 2 loan proceeds. Restaurants are exempt from affiliation for PPP 2. Therefore, they should be eligible for PPP 2 loans. Call South Carolina MBDA Center at 803-743-1152 for more information.

I bank with a credit union. Is it harder to get a loan with a bank without having an account with them?
No. Having an account with a bank makes no difference in whether you can apply for a PPP. Some banks may give preference to their existing customers because having an account provides the bank with information on which to build the loan and start processing. Before applying, search multiple bank websites, talk to loan officers, and talk to other business owners who bank there. You may also contact the MBDA Business Center. Then make the best decision for your business.

I have a salon and a cleaning company. Can I apply for both?
You may apply for a separate PPP loan for each business you own.

What’s the difference in self-employed and independent contractor?
In general, all independent contractors are self-employed, but not all self-employed people are independent contractors. The IRS describes a self-employed person as anyone who carries on a business as either a sole proprietorship or as an independent contractor, is a member of a partnership that conducts business, or someone who is otherwise in business for himself. A self-employed person could be anyone from a doctor to a sculptor who sells her art to the public. You can find more information here: Self-Employment vs. Independent Contractor (chron.com)

My business has not been profitable, so I have ceased paying myself a salary. How do I provide payroll information?
You can use line 31 from Schedule C to show income.

What part of the PPP is forgivable?
The entire PPP may be forgivable if the requirements are met as specified by your bank and SBA.

What if you been receiving cash also?
To be able to use income for PPP you must document with tax returns or 941s.

Is it true that if your business took a loss last year and your schedule C tax return is $0 or a negative number you can't apply?
That is true.

I was told by the bank that the person that is paid on the e1099 can file but not the employer that has a contract with them.
A person receiving an e1099 or a paper 1099 can apply for a loan. The employer issuing the 1099 cannot receive a loan based on those funds because that person is not an employee. An employer may borrow based on employee wages and quarterly tax reports or 941s, the annual 940, or the income on a Schedule C line 31.

If I did not apply for the first PPP loan. Is it too late now? Can I apply for both the first and second at the same time?
The first PPP loan is available until March 31, 2021. It is possible, although not recommended, for you to apply for both the first and second PPP at same time.

© 2021 MBDA COVID-19 Project

400 Percival Road, Columbia, SC 29206
Tel: (803) 743-1134

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