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Questions?

Please feel free to contact us

661-837-1100

Bakersfield

714-794-4680

Orange County

702-217-0660

Las Vegas

661-837-1100

Los Angeles

PPP Loan forgiveness (Las Vegas, NV)

Paycheck Protection Program Loan Forgiveness Las Vegas

Back Taxes Relief

Paycheck Protection Program Loan Forgiveness Las Vegas

Offer In Compromise

Paycheck Protection Program Loan Forgiveness Las Vegas

PPP Loan Forgiveness

Paycheck Protection Program Loan Forgiveness Las Vegas

Tax Relief

Paycheck Protection Program Loan Forgiveness Las Vegas

Tax Lien Removal Service

Paycheck Protection Program Loan Forgiveness Las Vegas

Unfiled Tax Returns

Paycheck Protection Program Loan Forgiveness Las Vegas

Wage Garnishments

Paycheck Protection Program Loan Forgiveness Las Vegas

Wage Levy

Paycheck Protection Program Loan Forgiveness in Las Vegas, NV

The COVID-19 pandemic and the lockdown that followed suit left many small business owners wondering what was next. Many couldn’t help but wonder if they were going to make it to the end of the year. Fortunately, the federal government passed the CARES Act, designed to help out small businesses. Here are some things that you should know.

Paycheck Protection Program Loan Forgiveness Las Vegas

What is the PPP Loan Forgiveness in Las Vegas, Nevada?

The Paycheck Protection Program, otherwise known as the PPP, originated from a bill passed by the Federal Government back in March of 2020. This bill, passed in the Coronavirus Aid, Relief, and Economic Securities (CARES) Act, was designed to help small businesses during these uncertain times. The PPP was one of the main measures of the Act and is the topic of discussion amongst small business owners.

Originally, the bill was supposed to provide $350-billion on loans in order to protect small businesses for eight-weeks through 100% federally guaranteed loans. These loans are backed by the Small Business Administration (SBA), which is also giving out SBA disaster loans during this time. As it became more and more clear that the pandemic wasn’t ending anytime soon, another $310-billion in loans were tacked on. Since the inception of the pill, the PPP Flexibility Act has made it easier to spend the funds and get the loan fully forgiven.

How Does This Compare to an SBA Disaster Loan?

We are often asked how this PPP loan is any different from an SBA disaster loan. We are also often asked if it’s possible to apply for both of these loans at the same time. To answer the second question first, yes and no. You can’t apply for an SBA disaster loan for the same purpose as the PPP. However, you can apply for an SBA disaster loan while also requesting an emergency grant.

To answer the first question, there are several similarities and differences between the two programs. Here are some of the main similarities:

  • You must declare that the uncertainty of the economy makes the loan necessary
  • Both are free to apply for
  • You have an extended deferment period before you begin your repayment
  • There is no prepayment penalty

Here are some of the major differences between the two:

  • No personal or business collateral is required – The SBA disaster loan may require collateral for any loan over $25,000
  • You can have credit elsewhere – Most of the time, an SBA disaster loan requires you to have no other source of credit
  • The funds are for a more restrictive set of purposes – Typically, SBA disaster loans can cover more operating expenses
  • Your loan can be forgiven with PPP – Perhaps the biggest difference, the SBA disaster loan always requires payment

As you can see, the differences are apparent. You may need to weigh your options to determine whether an SBA disaster loan makes sense for your business. 

How Do You Qualify?

Paycheck Protection Program Loan Forgiveness Las Vegas

Fortunately, it is much easier to apply for forgiveness for these loans than it is to apply for SBA disaster loans. If you are a small business, you should have no difficulties qualifying for the loan. Here are some of the businesses that would apply:

  • Sole proprietorships – It is required that you submit a Schedule C from your tax return filed, or to be filed, showing the net profit from the sole proprietorship
  • Independent contractors – You will be required to submit Form 1099-MISC as well as your Schedule C
  • Self-employed – You must submit payroll tax filing reported to the IRS

If you have any questions about these qualifications, which is completely expected, feel free to contact our team and we can help. You may need to do further research to determine if you qualify for the program.

How Do You Apply For The Program?

When you apply for the program, you will be asked several different things. Be prepared to have answers or documentation to verify the following:

  • The economic uncertainty has made the loan a necessity for the survival of your business
  • You will use these funds to help retain workers and maintain payroll
  • You will not receive another loan under this program
  • Documentation that verifies the amount of the full-time equivalent employees on payroll and the amount they make
  • Your covered mortgage interest payments, covered rent payments, and covered utilities for the eight weeks after receiving the loan
  • You must confirm that the tax documents you send for this loan are the same as the ones you send to the IRS

In order to ensure you are following this process correctly, you may want to apply through more than one lender. Here are some documents you should have at the ready:

  • Payroll processor records
  • Payroll tax filings
  • Form 1099-MISC records
  • Payroll tax forms from 2019
  • Schedule C for a sole proprietorship

The easiest way to get the documents you need is by downloading a payroll report through your payroll provider.

How is the Loan Forgiven?

Paycheck Protection Program Loan Forgiveness Las Vegas

In order to get this loan forgiven, you must have shown a commitment to protecting your employee’s paychecks during this economic downturn. Failing to do so will result in you failing to get the loan forgiven. 

You and your business must commit to maintaining an average monthly number of full-time equivalent employees equal or above the average monthly number of full-time equivalent employees during the previous one-year period. And you must spend 60% of the loan funds on the payroll. Here are some things that may reduce the amount that can be forgiven:

  • Any reduction in the number of employees retained
  • If any wages were reduced by more than 25%

If you were to re-hire any laid-off employees or restore any decreases in wage or salary by December 31, 2020, you will not be penalized for having a reduction.

Tax Crisis Institute Can Help

Nobody knows more than the team here at the Tax Crisis Institute how confusing your taxes can be. During a time like this, it’s important that you have a solid understanding of what’s going on. If you have any questions regarding the PPP loan forgiveness in Las Vegas, Nevada, give us a call and we can help. 

Paycheck Protection Program Loan Forgiveness Las Vegas

Back Taxes Relief

Paycheck Protection Program Loan Forgiveness Las Vegas

Offer In Compromise

Paycheck Protection Program Loan Forgiveness Las Vegas

Payment Protection

Paycheck Protection Program Loan Forgiveness Las Vegas

Tax Relief

Paycheck Protection Program Loan Forgiveness Las Vegas

Tax Lien Removal Service

Paycheck Protection Program Loan Forgiveness Las Vegas

Unfiled Tax Returns

Paycheck Protection Program Loan Forgiveness Las Vegas

Wage Garnishments

Paycheck Protection Program Loan Forgiveness Las Vegas

Wage Levy

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