# PPP Loan



## kcchiefsfan1982 (Aug 19, 2019)

Has anyone got a PPP loan yet? This message says we may get up to 2.5 times our average monthly net over the last 12 months. Does this apply even if we have a regular 9 to 5 job? Does this apply if we did not show any taxable income from uber?


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## oldfart (Dec 22, 2017)

I got a PPP loan 
I didnt use my schedule C to qualify. I used bank statements that showed regular deposits from Uber and Lyft I added them up and thats the number I used 

These loan applications are made to banks, not directly to the SBA so different banks may have different requirements and some may require your tax return. (schedule C) 

EIDL loans were not mentioned in the Uber email, but the SBA has re opened that program for us. The loans are not forgivable. The terms are interest at 3.75% over 30 years. so the payments are small. These loans are based on gross revenue and as near as I can tell are for 1/2 of annual gross revenue

So if your uber customers paid $10,000 for rides you provided,last year, and if Im right, you will probably be approved for $5000 (if they make loans that small)


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## WingLiberty (Nov 25, 2017)

oldfart said:


> I got a PPP loan
> I didnt use my schedule C to qualify. I used bank statements that showed regular deposits from Uber and Lyft I added them up and thats the number I used
> 
> These loan applications are made to banks, not directly to the SBA so different banks may have different requirements and some may require your tax return. (schedule C)
> ...


Which bank did you go please ? and how much you got pls? is it 2.5x of our average monthly income?


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## kcchiefsfan1982 (Aug 19, 2019)

is it our avg monthly income from 2019?


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## Stevie The magic Unicorn (Apr 3, 2018)

For sole propriators it’s based off your 2019 tax return. The rules have been changed like 12 times now. I have one of these (for my vacation rental income) and from what I can tell it’s currently (as in from the info I found) 2.5 months or your 2019 taxable profit.

what it WAS earlier in the process varied.

I applied based on my monthly averages from March 2019 to March 2020, however those are the rules that existed... in March...


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## oldfart (Dec 22, 2017)

WingLiberty said:


> Which bank did you go please ? and how much you got pls? is it 2.5x of our average monthly income?


I applied through PayPal

They gave me several different ways to show my income As I said in my post I submitted 12 months of bank statements that showed deposits from Uber and Lyft

I got a PPP loan of $11500 (2.5 x average monthly payroll)

You didn't ask but I also applied for the EIDL loan and was approved for that too. That application asks for "Gross Revenue" and does not ask for proof. There are, as you probably know, a couple of threads here on UP discussing the EIDL loans. It in case you haven't seen them....These loans are not forgivable but they are easy to qualify for and the approvals have been at 1/2 of gross revenue. In my case $29,100

Good Luck


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## WingLiberty (Nov 25, 2017)

oldfart said:


> I applied through PayPal
> 
> They gave me several different ways to show my income As I said in my post I submitted 12 months of bank statements that showed deposits from Uber and Lyft
> 
> ...


thank you for answering me, my schedule C was small number so I was wondering if I can use bank statement as income proof.

Because the PPP rule was changed, I think we can write ourselves a paycheck after we stop collect PUA so we can get PPP forgiven


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## oldfart (Dec 22, 2017)

Stevie The magic Unicorn said:


> For sole propriators it's based off your 2019 tax return. The rules have been changed like 12 times now. I have one of these (for my vacation rental income) and from what I can tell it's currently (as in from the info I found) 2.5 months or your 2019 taxable profit.
> 
> what it WAS earlier in the process varied.
> 
> I applied based on my monthly averages from March 2019 to March 2020, however those are the rules that existed... in March...


No

The ppp loan has nothing to do with profit. It's based on payroll. The question is; how do we show the bank that we got paid when we file a tax return that says we didn't

Filing bank statements was my answer


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## oldfart (Dec 22, 2017)

WingLiberty said:


> thank you for answering me, my schedule C was small number so I was wondering if I can use bank statement as income proof.
> 
> Because the PPP rule was changed, I think we can write ourselves a paycheck after we stop collect PUA so we can get PPP forgiven


That's my thinking exactly, PUA is supposed to end on July 31 and now we have 24 weeks to use PPP to get it forgiven. So there shouldn't be any overlap

My potential problem is that I got PPP May1. So I have until mid Oct to use it. If PUA is extended things will get tight for me


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## WingLiberty (Nov 25, 2017)

oldfart said:


> That's my thinking exactly, PUA is supposed to end on July 31 and now we have 24 weeks to use PPP to get it forgiven. So there shouldn't be any overlap
> 
> My potential problem is that I got PPP May1. So I have until mid Oct to use it. If PUA is extended things will get tight for me


Yes, if PUA extended, PPP and EIDL rate is low and can repay in a long term, so I think there is no reason why we don't get all of them


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## Stevie The magic Unicorn (Apr 3, 2018)

When your doing a PPP loan as an independent contractor your using "owner compensation replacement"

The rules have been updated and clarified so many times it's a mess to straighten out, Normally reputable sources miss/failed to update information they posted earlier.

And like i said, they are different from when i applied.

What it was when i applied.

I took March to March for my numbers.

Step 1: _*Aggregate payroll costs from the last 12 months for employees*_ whose principal place of residence is the United States.
Step 2: Subtract any compensation paid to an employee in excess of an annual salary of $100,000 and/or any amounts paid to an independent contractor or sole proprietor in excess of $100,000 per year.
Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12).
Step 4: Multiply the average monthly payroll costs from Step 3 by 2.5.
Step 5: Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less the amount of any "advance" under the EIDL COVID-19 loan because it does not have to be repaid.

WHAT IT CURRENTLY IS!

• Step 1: Find your 2019 IRS Form 1040 Schedule C line 31 net profit amount (if you have not yet filed a 2019 return, fill it out and compute the value). If this amount is over $100,000, reduce it to $100,000. If this amount is zero or less, you are not eligible for a PPP loan.
Step 2: Calculate the average monthly net profit amount (divide the amount from Step 1 by 12).
• Step 3: Multiply the average monthly net profit amount from Step 2 by 2.5.
• Step 4: Add the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid).

This is 2019/12X 2.5

See the difference?

2019 Schedule C line 31 Net Profit amount Divided by 12 X 2.5
VS
12 months of payroll divided 12 X 2.5

Big difference here, if you have 12 months of Zero your maximum amount is ZERO,

And if your an uber driver and write off _all_ your expenses...

You can't get jack forgiven....

I'm not making this up, the PPP rules really did change this much since it was first put together.

And owner's can't take 24 weeks either. They didn't give the 16 week extension to prevent a loophole from an owner laying off his 2 employees and keeping all of it.

SO ICs only get 8 weeks to yo...


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## kcchiefsfan1982 (Aug 19, 2019)

I still have no idea if i can get a loan. 

i have a regular job and i just started ubering in sept of 2019


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## Stevie The magic Unicorn (Apr 3, 2018)

kcchiefsfan1982 said:


> I still have no idea if i can get a loan.
> 
> i have a regular job and i just started ubering in sept of 2019


Did you have any TAXABLE profit? As in taxable profit on your schedule C?

If not... you probably can't. Most uber drivers have _zero_ taxable profit.


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## oldfart (Dec 22, 2017)

Stevie The magic Unicorn said:


> When your doing a PPP loan as an independent contractor your using "owner compensation replacement"
> 
> The rules have been updated and clarified so many times it's a mess to straighten out, Normally reputable sources miss/failed to update information they posted earlier.
> 
> ...


My advice, based on what Stevie The magic Unicorn has posted, is collect unemployment and dont worry about PPP,

But if you need to rebuild your reserve account, Id apply for EIDL. It cant be forgiven but the terms are pretty good...... 1/2 of Gross Revenue to be paid back at 3.75% over 30 years.

And remember Gross Revenue is what the rider pays Uber, not what Uber pays you


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## WingLiberty (Nov 25, 2017)

Stevie The magic Unicorn said:


> Did you have any TAXABLE profit? As in taxable profit on your schedule C?
> 
> If not... you probably can't. Most uber drivers have _zero_ taxable profit.


This is my problem right now, my schedule c was a small number....
but anyway, I will go to bank to see what's the bank gonna say.


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## Stevie The magic Unicorn (Apr 3, 2018)

My schedule C number for taxi driving was barely $7,300 for 2019, very part time. I was working my w2 job full time hours all year.

About _$8,000 highe_r than an uber driver would have in my town _full time_.

Reality is that the clarification of the rules made uber drivers ineligible for the PPP loan due to the lack of taxable profit.


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## oldfart (Dec 22, 2017)

Stevie The magic Unicorn said:


> My schedule C number for taxi driving was barely $7,300 for 2019, very part time. I was working my w2 job full time hours all year.
> 
> About _$8,000 highe_r than an uber driver would have in my town _full time_.
> 
> Reality is that the clarification of the rules made uber drivers ineligible for the PPP loan due to the lack of taxable profit.


If you need or want some money, apply for EIDL. Its not tied to payroll, so no conflict with unemployment. Its not based on your tax return, its based on gross revenue. And its not "free money" Its a loan that has to be paid back.


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## TBone (Jan 19, 2015)

Stevie The magic Unicorn said:


> Did you have any TAXABLE profit? As in taxable profit on your schedule C?
> 
> If not... you probably can't. Most uber drivers have _zero_ taxable profit.


I find that hard to believe. The IRS limits deductions and I max mine out and still owe 200-300 every year


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## [email protected] (Jun 24, 2020)

oldfart said:


> I applied through PayPal
> 
> They gave me several different ways to show my income As I said in my post I submitted 12 months of bank statements that showed deposits from Uber and Lyft
> 
> ...


Hi, which business industry did you select to apply? I cannot find any that be related for Uber driver. I am using PayPal too. Thanks


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