How do I pay myself with PPP as a sole proprietor, independent contractor, or schedule C filer?

[@ClaraCFO]

Need help filling out your PPP forgiveness 3508S form? Hannah did a training on how to fill out and calculate your PPP Forgiveness - it's available for only $47 here: claracfo.podia.com/3508s-course-how-to-get-your-ppp-loan-forgiven-loans-under-50-000

[@frankjordan8594]

Does this course cover figuring out payroll loan forgiveness, for a sole proprietor, with no employees, using form 3508S?

[@ClaraCFO]

@@frankjordan8594 yes!

[@KB-uv7nz]

Does this training give guidance on those of us that had a YOY 25% reduction in revenue in 2020 and therefore were able to received the second draw in less than 8-wks from the dispersement of the first draw? Obviously, the calendar dates overlapped, but the covered periods cannot.

[@ClaraCFO]

@@KB-uv7nz No it does not. Right now we believe that both loans will not be fully forgivable unless the SBA speaks up about this.

[@azzedinedz8324]

Big respect to this lady, well explained and straight to the point and not like other videos too much talk and nothing explained. Thank you again

[@ClaraCFO]

Thanks so much!!

[@azzedinedz8324]

@@ClaraCFO hello, I just recieved the loan of 15559$ and I am sole proprietor refrigeration business repair without employees.what do you suggest to qualify for ppp forgivness with 0 problem. Also if I a write myself a check what should I write on memo?

[@deloreshicks3461]

Thank you, thank you, thank you so much for posting this video. I was racking my brain trying to figure out how to show payroll cost as a sole proprietor. I am sending you a great big internet hug. Thanks again.

[@ClaraCFO]

So glad it's helpful!!! 🤗

[@KingPhillipThe1st]

The only thing I’m confused on is coverage period.

[@Sarasdad91]

Great.Finally someone who explains it so us dummies can understand. Thank you Clara...

[@ClaraCFO]

It is a complicated subject! Glad it was helpful!

[@taujc.8355]

@@ClaraCFO How do we “close our cover period?”

[@latarshawinston7529]

Sorry 😞 guys I’m still confused 🤷‍♀️ but I’m a gig worker so I would like to pay myself

[@ldubb4044]

3:40 mark 🤌🏾 Haven’t touched my funds because I’ve been on the hunt for the answer to this question. Thank you!

[@ClaraCFO]

So glad that's helpful!

[@tareqalahmed]

Thank you this is the only video on youtube that clarify the forgiveness process for me😘

[@ClaraCFO]

You are so welcome

[@podcastingforcoaches]

I have been looking for a breakdown like this (namely whether or not I could transfer from a business checking to a personal checking out and if I could do it in one lump sum) and couldn't find that specific information. I also wasn't really sure what the deal was with the covered periods and when to apply. So, you seriously just answered all the questions I've been researching for hours in less than 8 minutes. lol THANK YOU!

[@ClaraCFO]

Awesome!! Happy to provide some clarity

[@s.n.7913]

Sending virtual 🌺 🌹 to you. No one has explained any of this as clearly as you have. Thank you looking forward to hearing back on my questions on this and other video

[@Yvonne-2024-f3s]

You have provided such great detailed information here. One question about bank accounts. What if you are a sole proprietor and your business and personal funds are co mingled in one personal bank account? How do you pay yourself?

[@opsemail5529]

Interested in this answer ?

[@geeman9252]

@@opsemail5529 so am I - I don't think it's known, I hope there is a cut and dry answer - I have all my monies going to the same account, I can't pay myself if my PPP goes to that account, its already there.

[@russelltate1394]

I would suggest opening another checking account and writing a check or transferring the money to that account.

[@ClaraCFO]

Great question! I was getting this question a lot, so I made another video to answer it: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@Unordinary-girl]

I simply opened another account with my same bank (Chase) and set up weekly account transfers for the same day for next 9 weeks.

[@dougmweems]

Very helpful, thank you! I am still a bit fuzzy on the the 2.5 months to keep open account prior to applying for forgiveness. I am self employed with no employees, so I will just transfer 100% of loan now, how do I calculate the 2.5 months and what if I wait longer? I do not want to miss window, I do not have other expenses. Anyone with knowledge on this, I would appreciate you sharing! Thank you!

[@GoldilocksDoesSelfCare]

OMG thank you!!!!!! I would have been totally lost had it not been for this video!

[@meccawebb9050]

I’m confused 🤔

[@thebigkid222]

Clara. You were great in explaining but I need to know to to pay my self from the personal checking account that my ppp loan was deposited too. My personal account is what I use for my contractor busisness. Thanks Clara

[@ClaraCFO]

Great question! I was getting this question a lot, so I made another video to answer it: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@BespokeFotografie]

From all I’ve seen is that as a sole proprietor/schedule c filer we are technically not an employee according to the irs and in turn technically don’t have “payroll”. So from what I’ve seen is that we can use the loan all at once and when the 11 weeks come we should be able to apply for forgiveness based on the same document used to get the loan which is just the schedule c.

[@ClaraCFO]

yes basically!

[@ivanchorojo]

👍

[@jaykold11]

What do you mean all at once?

[@jaykold11]

@@ClaraCFO what does you mean all at once?

[@allabouthelenawithgoldenwe904]

So I did just receive first draw ....I'm still not sure how to compensate myself. And what other expenses can I use the money for. I did Womply Fast Lane as I am the only person in my company. I file schedule C. your channel is great!

[@apriljohnson4319]

Following

[@apriljohnson4319]

If your business is ran out of your home, so far I’ve gathered information stating the loan could be used to cover rent, insurance, business supplies bought only through the U.S, as well as machinery.

[@allabouthelenawithgoldenwe904]

@@apriljohnson4319 You're awesome thank you!

[@xaviandelaney5400]

You’re awesome and so smart to keep this so simple for everyone to understand

[@ClaraCFO]

Thank you!! Thanks for watching!

[@hichamelanmari2790]

HI! GREAT VIDEO I'm self employed can use the whole PPP loan fund 100% to pay my self for 10 weeks without expenses

[@annabelleolsen4189]

Soooo please help me. 60% the payroll cost can go to me for bills etc thats pretty much whatever I wanna spend it on and the 40% has to be specifically for the business correct?

[@vivianmadisonmahoney9457]

Listened to hundreds of videos and got tons of great info. Thank you...you're the only one who answered this question/subject clear and concise!!!

[@ClaraCFO]

You're very welcome! Thank you for watching!!

[@itsyourboyn2311]

Thank you so much. It was very helpful, specially how you broke down the owners compensation.

[@ClaraCFO]

Awesome! thanks for watching!

[@tommytommy7825]

Here's a possible repeat question, from what I am understanding in order to make sure we have the loan forgiveness we should have the last compensation payment during the after the 10th week to make sure the 11th week would be ideal, or after 8 weeks at 100% payroll would that be forgiven, I'm looking for 100% forgiveness....

[@nellielee2915]

Thank you for helping us and I know you are explaining it well, And I know it's me that getting confused on how and when to pay myself, but I will watch your video again to see if I can understand better the second time.

[@ClaraCFO]

Hope it helps!

[@sabrinachin5251]

@@ClaraCFO please held me! I just got my first drawn ppp fund money today, but I am really nervous about using it the wrong way and it get forgiven. I wanted be able to get 100% forgiveness, otherwise I won’t have the money to pay back once I use the fund. On your video I can pay myself 100% the full amount? My question is that I am sole proprietor, but I don’t have a business name, LLC or DBA that register through state. I file taxes return on schedule C with SSN. Also I just opened 2 business account back in April of this year right before I applied for ppp. (Account 1 ) it for ppp fund money. (Accounts 2) it’s for my business income coming and out. So I planing on use it for 11 weeks for cover periods. I planing on paying myself by transfer from ppp account 1 to my regular personal checking account. And also thinking transfer monthly from personal checking to business checking account 2 to pay supplies and rental station. Would I be able to get forgiven base on the information I mention here? Please help and thank you.

[@jeancarlosmendez1842]

@@sabrinachin5251 Hi pretty don’t over think it just pay your self like you said one bank Account to another if you have checks better if you have 24 weeks pay you self every week or like she said 1 lump sump ;)

[@ncjp]

I think it would be helpful if you did a visual demonstration using actual numbers and timeframes. My confusion is that if I receive one lump sum payment directly into my personal back account haven't I essentially paid myself in full? I don't understand the covered period as it pertains to paying yourself in increments since it is all given to you at once.

[@ClaraCFO]

Watch for the video today! Answering this question 🤗

[@ncjp]

@@ClaraCFO Awesome, thank you.

[@itsreese351]

hey so im still confused can someone help me please...So if i pay myself what does the check needs to say? and how do i know how much to pay myself weekly? and i pay myself for 8weeks then apply for the forgiveness?

[@eclawson77]

Very helpful info!!! I was doing this all wrong but I can recover. Thank you!!!

[@franciscomedinav]

Hi, I got my PPP deposited on a personal account. (I'm self employed, Gig Worker) How the SBA sees that in term of applying for forgiveness?

[@makaylalove2589]

I would like to know as well

[@azadhussein417]

Hopefully she answers I have the same Question !

[@JJ-hw9dt]

Yes same here! Trying to get an answer!

[@DedeYoung23]

Same thing I’m wondering. Has this been answered.?

[@charissarwest]

Same. Please answer this question.

[@karenjohnson7978]

Absolutely awesome. I was so confused until I found you, Clara! That was so very clear. The only thing I didn't understand because I am so thick headed is what do you mean by "keep your cover period open"? Is that something I do on a form or what? How and when do I declare a "cover period." Sorry, no one would ever want to hire me as a bookkeeper. :)

[@ClaraCFO]

I'm so glad I could help!! The covered period can be a minimum of 8 weeks after receiving the funds and maximum of 24 weeks after receiving the funds. When I say "closing the covered period" this just means the end date of your covered period. You don't declare the end of the covered period to anyone until you fill out your forgiveness application.

[@TheBlessingReport]

So if I pay myself once in a big lump sum but I want to both get the entire amount forgiven but also apply for the second draw what should I do? And how long should I wait for the cover period? I am having a hard time understanding the timelines and amounts for the second draw and forgiveness for both

[@ClaraCFO]

You are in luck my friend! this video is for you: kzbin.info/www/bejne/j2TRmKqrgtSArtU

[@drjj1289]

@@ClaraCFO you can take 8 weeks to cover 100% not sure why youre only giving partial % payroll say you got 8000 pp1 8 wk period then take 1000 x 8wks total 8000 in 8 weeks done as a sp right?

[@barbarabrown6840]

@@drjj1289 so im confused because it seems as though youre saying example PPP $8000 and we take all of it for payroll over an 8 week period what about the 60/40 for business rent or utilities isnt it mandatory that you use 40% on business exspenses

[@barbarabrown6840]

in order to get full forgiveness

[@jeancarlosmendez1842]

@@barbarabrown6840 you can pay yourself 100% easier way

[@luisolivares2090]

Can I open another checking account within the same bank and transfer weekly funds there?

[@BattleBeautifully]

This was so helpful. So many people are saying we are unable to pay ourselves. Thank you for this video! 💆🏾‍♀️

[@leighdiaz-z7x]

I got a little confused. Could you please give me answers to these questions? 1. The lending company deposited my PPP loan in my checking account. Can I pay myself by transferring the money from my checking account to my savings account (same bank)? 2. 60% payroll 40 % business expenses How could I prove that 60% of my PPP went to my payroll when I make the transfer. Should I just transfer ONLY the 60% of the loan and LEAVE the 40% from where it was deposited (checking)? Thank you! Your video or very helpful.

[@WoodstockTBL]

When you say "Close your covered period" what does this mean? Is closing the period out the act of asking for the loan forgiveness or is there somewhere you have to go online to do it?

[@prime_cr4ckoninstagram798]

Direct message me

[@prime_cr4ckoninstagram798]

+1 (360)

[@prime_cr4ckoninstagram798]

453 * 7521

[@mzsunshine7702]

I love this video and it was very very helpful for me as a SP. thank you so much

[@ClaraCFO]

Glad it was helpful! Thanks for watching!

[@djdaethstar238]

I have a question. What if you because of the lockdowns, had no income in 2020? I had income in 2019 as a seasonal worker. Lockdowns in 2020 kept me from working in the spring/summer which I make my money. So basically I would have 100 percent income loss in 2020. I have not been able to find any info on a situation like this. Thank you.

[@gregwalksnyc9437]

Hi Clara. Ive watched your video a few times. I'm a sole proprietor and received a PPP loan in April 2021 for a covered period of 168 days and the loan is for 60 months. Please confirm, do I have to wait to the 2.5 months to pay the full loan to pay myself to be in compliance with the PPP loan? How do I know if the loan is forgivable? Must I apply for forgiveness, via the leading institution that facilitated the PPP loan? Thanks ! YOU ROCK, im loving your site. Greg

[@MsJulieAnnBrody]

This is line 7 on Schedule C for Gross Income, correct? Just wanted to make sure. Thank you SO much for this!!

[@MsJulieAnnBrody]

Oh! and when I'm rounding up the week to be 2.5 months, do I round up to Sunday? Or Friday?

[@leonardobartolotta2944]

Thank you for these Videos. Are you saying that you must use the PPP money within the covered time period ??

[@PrettyLyfeBeauty]

Can I transfer and pay myself from checking's to savings?

[@ClaraCFO]

Great question! I was getting this question a lot, so I made another video to answer it: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@eflem]

Wonderful explanation! The others are chock full of confusion!

[@ClaraCFO]

Happy to provide some clarity!

[@pablodetimofeev6450]

So once I get the funds if I were to transfer it from my checking to my savings and in the notes of the transfer put like “payroll” or something along those lines and then just saved the statement for that I’ll be good?

[@ClaraCFO]

Yep! And save your schedule C that you used to apply for the loan.

[@bardistv9653]

Good question

[@quentasiatate9367]

@@ClaraCFO After you do this can you begin to spend the money by transferring it back to yourself since savings accounts don’t have cards attached if that makes sense.

[@karenleon974]

So basically after transferring the whole sum to myself I need to wait 2 and a half weeks to ask for forgiveness?

[@crystalmckinneycoaches]

My loan was deposited into my personal account. Can I transfer into a savings account? Or should I move all of the funds into a business account in the beginning and back to my personal in the end.

[@ClaraCFO]

Hi there, I have a video that should help: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@Gabbyranda]

So if we have a ppp loan put into our personal account do we transfer to a savings or business account to put yourself on “payroll” also after we transfer the money can we spend it for n anything?

[@jaeleelomba9745]

Following because I’m looking for the same answer. My loan went to my personal account and I have a business account of course but now what do it do..

[@Gabbyranda]

@@jaeleelomba9745 go to her other video she has another one explaining in great detail what to do.

[@swissmonkey117]

Love your smile, thanks for all the value

[@nauticaaafash9974]

What abt if the money is deposited to ur personal acc directly what do u call that?

[@jordalebrewster]

Yourself being paid because it technically was directly deposited into your hand

[@nauticaaafash9974]

@@jordalebrewster Thanks

[@ClaraCFO]

Hi @Natuicaa Fash, I was getting this question a lot, so I made another video to answer it: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@nauticaaafash9974]

@@ClaraCFO thanks for taking ur time to make us understand this. Thanks once again

[@skipjack000]

When applying for forgiveness, are both business and personal bank statements required? (Or simply the business bank statement showing disbursement to the personal account).

[@gezicikutuphane12]

İf you Show on computer or on paper it’s easy to understand. I want to know how I write down check myself ? I watched may be 10 videos but don’t understand

[@Damnshepretty]

Good morning! If my business is run from my home, are rent/utilities considered qualified expenses?

[@badcompany1552]

I have a question. I got the first draw of the ppp loan and they sent me paperwork to sign for the second draw but I do not need the second draw what do I do?

[@AliSwann]

Can soneone who's business was closed and had a full-time job when they applied and received the loan and apply for loan forgiveness? And what would happen if it is found out that the person that applied for the loan used an address on their application that was not the location of their business?

[@lmoudirnyc7737]

Can u get edil advance grant, and at the same time you collect unemployment

[@1216mindy]

Yes

[@kathyayun1473]

Can I transfer all the PPP loan money amount from my checking account to my savings account. And than transfer the 2 weekly payroll back to my check account from the savings account every two weeks? Thank you so much!

[@KingDevon]

I’d like to know this also

[@jenniferortiz282]

Same here, it’s my plan but I want to make sure it’ll work.

[@magicalgoddesscosmetics7603]

Exactly my question

[@ashleyzinmotherhood]

Thank you! This was really helpful! So the only question I have left then is can I still have "paychecks" from my business during those 2.5 months as well? Or is this meant to be the only pay that we are allowed?

[@samshutt4359]

I wrote a check to myself with salary in the note section of the check and deposited it in personal checking for the loan amount

[@ClaraCFO]

perfect!

[@mikep6014]

For the whole loan amount?

[@ronfamous1]

I screwed up and had my ppp deposited In my personal bank account and not my business account. I wanted to also write myself a check for the whole amount. Should I just write a check from my personal to my business account?

[@gerrisummers6057]

@@ClaraCFO but is it ok to leave it in your business account? My loan was initially deposited into my personal & then I went & opened up the business account. I’m currently a Lyft driver.

[@Bmoremusic8787]

Hello, I had another question. Being a person already had funds, etc. in their account prior to their loan approval, can one start a new business, LLC, etc. after getting this loan or should they wait until after the forgiveness process? I ask because I'm not sure if the SBA could look at this as the money was used for a business startup. Just want to be sure I'm using the funds correctly. Please advise. ( If you provide you cash app I would GLADY send you a tip for your advice as you have been extremely helpful to so many others)

[@satmasterazbolivia8973]

Hey Amazing video! But I suggest you doing a video clarifing what happens with people who received the loan under Schedule C line 7, they should get the forgiveness with line 31? There is a lot of confusion around the gross and net income. Or should they use all the loan as payroll in 10 weeks and apply for forgiveness after 24 weeks?

[@Naimden]

you will get forgiveness for gross income.

[@texasprankcall]

Clara can you better explain "other expenses"? I know about rent, utilties, etc but can we pay any suppliers? Vendors? etc

[@elifar16]

Can I pay myself in a lump sum at the beginning of my covered period in a lump sum for the next 24 weeks or must I wait until the last week to pay myself in a lump sum ?

[@rapcltcatchup2536]

You Can Pay Yourself In 8-10 Week Period. It’s Up To You If You Want To Pay Yourself a Lump Sum or Pay Yourself Weekly.(That’s Your Option) Either Way Is Ok, as Longs as You Using “at-least” 60% on payroll or If You Don’t Have Employees You Can Pay Yourself. Try To Leek Two Separate Account Business and Personal. When You Get Ppp Put it In Business Account and Pay Yourself To Your Personal Account, small payments or lump sum up to you. And as Long As You Keep Your Bank Statements Showing You Paid Yourself From One Account To Another You Should Be Forgiven

[@ReelLife97]

@@rapcltcatchup2536 Can I use two personal checking accts if I don't have a business acct?

[@russelltate1394]

Yes of course you can

[@wokefordaze7329]

@@rapcltcatchup2536 what is the 8 to 10 week period? Is this when you first get the ppp or is it 8 weeks after you get the ppp?

[@kisshaballard4797]

@@rapcltcatchup2536 can we pay all 100% of the loan to myself and be forgiven. I included bonuses

[@zeaconsulting2056]

Thank you for explaining! Liked and subscribed.

[@ClaraCFO]

Thanks so much!!

[@MarcusAlvarado]

Thank you so much! I’m assuming similar “payroll expenses” can apply to a sole proprietor paying independent contractors?

[@ClaraCFO]

No - only the amount you pay yourself as a sole proprietor can be counted as payroll costs.

[@Anthony-sl2sj]

So how does it work when the loan is deposited straight into your personal bank account??

[@ClaraCFO]

Here is a video that should help: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@lisaberger2994]

So what do I put in memo field? Which dates to include? I'm intending on making one transfer.

[@mityazdorovetskiy4049]

I put Owner compensation

[@lisaberger2994]

@@mityazdorovetskiy4049 I realize that. Do you add dates, and if so which dates.

[@Jerseylance1]

Again thank you sis, and I’ve got 8540.00 keep making great videos.

[@Boss0Leeny]

Great Video. Q. What if you want to RETURN/REPAY the PPP Loan "if you changed your mind" ❓

[@LadyB.lovely]

Following

[@DJCoffeeBlack]

following

[@dianaandrews154]

And can you explain what we do about unemployment, some say you get both, but some say you do not!

[@russelltate1394]

It all depends on the state rules. Some allow some don't

[@jakehibbert4280]

Great video. Clear and specific information. Thanks so much!

[@ClaraCFO]

Glad it was helpful!

[@mykeymykey912]

I’m an Uber driver and wanted to know if my vehicle expenses(car note, insurance, gas and maintenance) would fall under mortgage, rent and maintenance payment for forgiveness.

[@victoriachristensen5186]

Yeah, I can help you authorize payment on your account by inputting a private script code then you'll be able to cashout your money on the game app successful into your PayPal

[@tierawhite756]

Hello, so how long do I have to wait to pay myself the 60% as a sole proprietor? Also the funds are coming to my personal checking, can I transfer to savings or just write myself a check a be done?

[@realmofoz]

So I apparently asked for the wrong loan amount....according to your spreadsheet I could have gotten double. So I can just divide the loan amount by 8 weeks and cover 100% of the loan. This is First draw PPP loan based on gross income, is there any stipulations on doing that?

[@luisgarza2948]

Can I apply for second draw before the 2 1/2. Months. I heard that you can apply for 1 and 2 now.

[@jefe24k89]

I've heard the same

[@russelltate1394]

Yes try Womply

[@africanculture81]

Hi Clara you probably not gonna read my comment, but if you do please tell me if I can keep the full amount in my account and wait for 2,5 months then pay myself with the full amount. Thank you

[@SilkHandz74]

GREAT info, thank you! Are there a lot of applicants under $50,000 getting their loans forgiven?

[@ClaraCFO]

Yes!

[@LexyNaee]

@@ClaraCFO so basically as a sole proprietor, just withdraw the money from one account , deposit it into another account an then apply for forgiveness?

[@TGGTheGloryofGod]

Hello Clara, I want to say thank you for this video. But I will like to know how much I am going to put n my PPP Laon If I did not make any money for 2020?

[@Carpenter1776]

Hello I have a question. So what your saying is as a sole proprietor I can pay myself all the money from my loan ? I do not have any employees, so I can get forgiveness correct ? Please help haha thanks

[@rlg222]

The Million Dollar Question!!! I just received my 1st draw using my gross on March 20th 2021 deposit. I never paid myself when I was running my business before COVID-19. I just used my profits to put back into the business. I do hear lots of different information so I haven't touched it yet. Even though this will cover my equipment rental storage cost starting in April. Thank You! Do I need to wait the 8 weeks to apply for the 2nd draw?

[@ClaraCFO]

This video should help! kzbin.info/www/bejne/j2TRmKqrgtSArtU

[@bstanart]

Wow! Thank you!! This is exactly what I needed! A Like and subscribe for sure! Question: When you say “Close your covered period” are you referring to spending the total amount of your loan? So for example the day you received the loan would be the start and the day you spent all of the money would be your closing date of the your covered period? I know my bank did the full 168 days on the promissory note I signed. I plan on doing one lump sum for owner compensation well before the 2.5 month cutoff.

[@thatmansetta94]

So you have to wait 8 weeks before you spend the whole thing?

[@luisolivares2090]

Hi the loan transferred to my personal bank account do I weekly transfer to another checking account to pay myself to create transfer statements?

[@ClaraCFO]

Hi @Luis Olivares, I have a video that addresses this: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@KingCII]

How do we “close our cover period?” Thank you!

[@CarlosSolis-wd3gx]

yes, how do we open and close the covered period?

[@ClaraCFO]

When I say "closing the covered period" this just means the end date of your covered period. You don't declare the end of the covered period to anyone until you fill out your forgiveness application. The covered period can be a minimum of 8 weeks after receiving the funds and maximum of 24 weeks after receiving the funds.

[@rmtellezamador]

@@ClaraCFO I still don’t understand? Can you give more details about this covered period. Do you mean that the Ppp loan can only be used within 8 weeks and then apply for forgiveness? I’m not sure.

[@lifeofcian]

Is there a certain amount we should be paying ourselves a week or can it be however much we want?

[@ClaraCFO]

Focus on the total, not each week!

[@Autrinique1]

60% of the loan. Period!

[@THEHIGAADINSTITUTE]

If I get funded on 4-15-21 for example and its $10,000 and I pay myself $1,000 every week for 10 weeks, can I apply for forgivness on week 11 or do I have wait the full 24 weeks because I passed the minimum 8 weeks? Hope the question makes sense!

[@shumakerart]

I’m wondering this too

[@BRTowe]

As I understand it, the minimum is 8 weeks, the maximum is 24 weeks. Also you won't get full forgivness if you pay yourself over 10 weeks. Stretch it to 11 weeks.

[@shumakerart]

@@BRTowe Oh shoot! That's interesting. I have it set to autopay 10 times but I'll change it to stretch the full 11 weeks.

[@BRTowe]

@@shumakerart I'm not sure it matters how you actually pay yourself, but you have to use a covered period long enough to encompass a full 2.5 months, so 11 weeks.

[@MaryGarcia-bt6tf]

how would i know how much to pay myself weekly?

[@s.n.7913]

Was sick for a long period could not take out.. Now better and my 24 weeks covered closes in October. Was told that can draw 100 percent as owners comp. Write check from acct funds are in (personal)) acct to second personal acct so not to mix funds is that ok from the entire v100% lender said to use 100% for payroll / then apply for forgiveness.. Trying to understand fully

[@patrickr.452]

Just what I needed to know, thank you!

[@ClaraCFO]

So glad!

[@ralphwoodbury3864]

Thank you, you made it easy to understand

[@ClaraCFO]

Glad to hear that!

[@seangay62]

So my understanding is as soon as it deposits, I will transfer it to my other account with a memo reading "owner compensation" or whatever the proper terminology is, and then proceed to use the money how I want and get it forgiven after the cover period? For me (a doordash driver) this will amount to a 11000 stimulus check. Why does that sound so illegal? Haha

[@bridgettenicole5471]

Yes that's exactly how you do it.

[@mvong1979]

@@bridgettenicole5471 Hi Bridgette I'm super confused. I qualified for a total of 12k. First loan I will get 6k and the 2nd loan is another 6 k. I am going with the 2.5 month. So when I get first loan I just deposit to myself full sum of 6k. Then after 2.5 month apply for loan forgiveness? Can I spend that money before 2.5 months or wait until I get loan forgiveness to spend??

[@bridgettenicole5471]

@@mvong1979 Yes, as soon as you desposit it "pay yourself" you can then spend it as you like. You do not have to wait the 2.5 months before doing so.

[@ReelLife97]

@@bridgettenicole5471 I getting information that you pay yourself 60% of the full loan, is that incorrect? I think I'll just pay weekly in increments of 10 weeks.

[@bridgettenicole5471]

@@ReelLife97 Yes the minimum of 60% is required to use on payroll. Just use the full 100% " the entire loan". Transfer the amount in one large lump sum label it payroll and that's all you have to do.

[@bookie2780]

Can I use 100% in payroll expenses?

[@laqaylapulliam3718]

Hey Clara just for Confirmation I can pay myself in one lum sum with a ACH transfer then wait 10 weeks to apply for the forgiveness & that one bank statement with that one transfer will be enough?

[@ClaraCFO]

Yes, but wait 11 weeks instead of 10 to make sure you reach that 2.5 month threshold.

[@jacquelinesolano9990]

@@ClaraCFO I desperately need a good answer. Please please answer my question. I was one of those sole props (no employees) who received ppp draw 1 only days before the rules changed to gross.... so my loan was super small..... then the March 31st deadline was approaching and I was told by my lender to go ahead and apply draw 2 and I didn’t need to wait before applying for draw two and it wouldn’t affect my forgiveness . Needless to say I received draw 2 only 5 weeks after receiving draw 1. How will this affect my forgiveness. My lender says it won’t. My local SBA says it won’t, but it seems everyone in social media and KZbin claims it will affect forgiveness of one or both of my loans. What answer would you give and what advice would you have when I go to try to get one or both forgiven?

[@laqaylapulliam3718]

@@ClaraCFO thank you so much

[@jamaalwright922]

Do u used 60% of the funds or can u ACH transfer all the funds

[@ladyteewill8504]

@@jacquelinesolano9990 was this question answered? If so can you advise the answer?

[@mmadrane2]

how long after receiving my loan should I apply for forgiveness? Do I wait until the following tax filing year? How do I know who my lender is?

[@eman3414]

Good question

[@alanabley525]

Excellent information, just subscribed. I believe that before you apply for the 2nd draw you have to prove you've spent the 1st draw. For a SP, does the act of transferring to a personal account for Owner Compensation count as spending or do you have to prove how you used that money from your personal account. Thank you.

[@jeanskinner7973]

Can I do ppp and unemployment

[@andreabaon4046]

Thank you! Can I transfer it to my savings account to pay myself?

[@daishafields9512]

A great question I hope she answers !

[@tshin28]

I hope she answers this

[@jnguyen031288]

Same mind think alike.... I been asking lot ppl doing this video but nobody answer.

[@bridgettenicole5471]

Yes you can. There should be a memo area or notes area, put Payroll or Owner's Compensation there. That's it.

[@marissaford6010]

Yes mine got deposited into my savings so I transferring mines into my checking every week to pay myself

[@omarbarron1767]

Great information! Great video. Thank you ...

[@ClaraCFO]

Thanks for watching!

[@Shamansoracle]

I have a pet care business. I collected a percentage off my pet sitters and walkers plus the work I do. We are all 1099s. How would I pay myself like this and be part of the forgiveness?

[@jamaalwright922]

Hey I just got my first draw Wednesday I haven’t spent anything yet I got 17,592 I wanna pay myself a lump some do I transfer 60% of that to my personal account

[@quentasiatate9367]

I’m a 1099 worker but I dont have a separate account from my primary one other than my main account that’s what confuses me. Thank you for the information.

[@dholmes299]

I just transferred to my cash app and paypal account. I plan to open a business account.

[@dajackson5]

Write yourself a check

[@quentasiatate9367]

@@dajackson5 the only other account I have is chime so I dont know if I could do that.

[@ClaraCFO]

Great question! I was getting this question a lot, so I made another video to answer it: kzbin.info/www/bejne/bIHYY2qCmNugnbc

[@Heb101922]

Okay, here is my situation: I am a self employed, independent flooring contractor. I have no employees, and have no payroll. I received a small PPP loan of less than $2,000 back in March. I used the money to purchase much needed tools for the work I do. I could have payed myself and then purchased the tools but instead, I elected to just used the funds to pay for the tools rather than paying myself first and then buying the tools. Is this going to be a problem for me? Thanks for any help.

[@Livin_303]

What is the covered period mean. I know it’s 2.5 months but does that mean I can’t make additional income during this time? What does it mean? Thank you

[@ayana8400]

You are awesome girl. Thank you very much! You explained it to the tea

[@ClaraCFO]

So glad! Thanks for watching!

[@rapcltcatchup2536]

So Basically I Can Pay My Self With The Loan (doesn’t matter if it’s every week or lump sum) Transfer from business account to personal in check form and as long as I keep them payroll statements to myself I will be forgiven ?

[@seangay62]

That was how I understood it.

[@kesha8403]

Thanks that was broken down a little better but I am still confused. Do I start the forgiveness after I transfer all my funds in my 8 weeks period. Or I wait the 24 weeks

[@userfriendly37]

Thank you so much for this! You just answered my question!

[@ClaraCFO]

I'm so glad!

[@ronaldthompson6246]

THANK YOU!!

[@smackatoo]

How do I pay myself the lump sum and not lose my PUA unemployment? Will the lump sum salary to myself immediately cut off my PUA? Or just for the week I paid myself the PPP loan and then the following week, certify for unemployment? I have 24 weeks to pay myself. Can I wait till my unemployment runs out in Sept and then transfer the PPP loan amount into my personal acct then for forgiveness?