Got Business Debt? Read This

Image via Unsplash

Article Content by: Courtney Rosenfeld

Is your small business swimming in seemingly bottomless debt? If so, you’re not alone.

According to data from the Small Businesses Voices survey conducted by Goldman Sachs, 40% of small businesses in the United States “have less than three months of cash reserves.” Also, about 31% of business owners felt they could find funding to shore up their businesses, but only 20% of Black business owners felt like they could find financing. 

However, you don’t have to remain in debt. You can take further action via the following steps, presented below by Rock Capital & Associates.

Rock Capital & Associates has hundreds of programs available for their clients. By having access to a Business Finance Consultant, you have access to hundreds of funding sources across the United States and Canada. Visit our website or call us at 1-877-670-1590.

Start With Your Budget

You probably already know the importance of keeping a budget for your business. However, it’s also probably been a while before you gave it a second look. The first thing you want to do is take an audit of your entire budget by going through all of your financial transactions, bank statements, expenses, and sources of income from the past year. These things will tell you where you’re possibly wasting money and where you need to make improvements.

You’ll also want to get your bookkeeping up to date by using intuitive financial tools. There are apps and software that can help you generate budget reports in real-time based on your current balance statements and tailor-fit them to your needs. This, in turn, allows for more efficient forecasting so you make better spending decisions while monitoring your overall expenses. 

Maximize Your Sales

Making more money is a critical step in getting out of debt. The more money your business can make, the better chance you have at paying off your loans and credit lines quicker. There are tons of ways to boost your sales and garner new customers. Figure out which methods will work best for your business and get to work. 

Consider the journey your customer goes on to reach that final sale, often called a conversion funnel. How can you help your clients solve a problem they are having, and how can you easily lead them to the solution (your product or service) that they are willing to pay for?

Cut Unnecessary Expenses

Your budget should give you a general idea of which recurring expenses are a waste of your time. For example, maybe some certain products or services aren’t popular, or maybe you’re not getting the most out of current subscriptions. You may also want to consider relocating to a more affordable space or even a shared workspace — your expense-cutting options are virtually limitless. You just have to zero in on what your business can absolutely live without.

There are apps and tools, some even free, that exist to help you save money at little to no cost on things you might otherwise be spending tons of money on. For example, Time Doctor will keep track of hours used in work for business productivity and tax purposes. Google Workspace provides a way for all your team to work using similar tools like Docs and Sheets with storage space up to 30 gb. Survey Monkey allows you to create surveys to monitor what your clients need and build services and/or products around customers. Marketing-wise, you can start out with a free logo design. It’s ideal for a new product launch or to rebrand, and can carry across multiple platforms. That way, you won’t necessarily have to spend money on a designer.

Renegotiate Your Vendor Contracts

In addition to reducing and restructuring your expenses, it’s a great idea to reach out to any vendors you’re working with to see if you can negotiate the terms and pricing of your contracts. It’s very common to get comfortable with your vendors, allowing them to take advantage of you by raising their prices and neglecting to improve their offerings. Here is where you can figure out who is worth continuing a relationship with and where you can minimize supplier expenses.

By using the following suggestions, you and your small business can start to make the journey out of debt instead of drowning in debt. Instead of making this voyage from financial uncertainty toward financial stability alone, why not reach out to Rock Capital & Associates to see how we can help you!

Stock Market Summary – 8/19/21

Alternate text

The VectorVest Colorguard is Bearish this afternoon driven by continued concerns the COVID Delta variant, turbulence in Afghanistan and China plus rising prices. In addition, the FED released the minutes to Wednesday’s meeting which pointed to the possibility that the central bank may start tapering its pandemic-related monetary stimulus this year.

It’s not recommended to buy stocks at this time and I would suggest reviewing your portfolio for loss leaders and evaluate whether to pare down those positions to provide cash for future trades. I just closed out positions in BTU, TGH and TX due to heavy moves downward!

Stock futures were down this morning on the news and some indices have rebounded this afternoon. That said, here’s where the market stands at 1:20pm EST:

  • • DOW – down (-0.15%)
  • • Nasdaq – up +0.35%
  • • S&P -up +0.17%
  • • Small Cap 2k – down (-1.00%)
  • • VIX – down (-2.18%)
Market Sentiment
RoboTrader Portfolio as of 8/19/21

Here are my RoboTrader Portfolio holdings as of this afternoon. To note, all trades were automatically placed on a paper trading account as of 1:20PM EST today.

Short-term indicators have turned from Neutral to Bearish and all of the positions were opened on Tuesday as shorts and all but 2 of the trades are winning.

IBKR Portfolio Stock Spotlight Stock Spotlight

Given performance over the past couple of days, I’ve had to close out some of my Interactive Brokers positions. TX and BTU and both made strong moves down today which served to push the positions up against the STOP loss of 7%. I’ll be using the cash to prepare for the following scenarios:

  • Bullish Sentiment – Buy Call Options are solid stocks with good volatility, but recently beaten down. As well, I like to play Put Spreads on particular Equities like BOIL and APPS.

STASH INVESTING – FREE STOCK OPPORTUNITY

My aunt started using STASH last summer to save, bank and invest. After seeing how it worked I decided to try it out myself. Since then, I’ve seen some amazing investment gains and have grown to love using the STASH Card and earning stock back from purchases. 

Investment Returns

Up 196% since August 2020

Stash Impact

$821 saved by Rounding Up and making auto transfers

This past Wednesday night I claimed my FREE Bed, Bath & Beyond ($BBBY) stock and I couldn’t be more happy to stack my pennies. Every Wednesday night at 8PM and sometimes on Fridays and Sundays STASH has additional giveaways. If you’re not signed with STASH, now might be the best time to take control of your saving and investing. Click here to signup!

PARTY STARTS EVERY WEDNESDAY AT 8PM! GET STASH NOW!

CRYPTO Corner

I’ve been using Coinbase for the past 3 years and find it super easy to use for buying, moving and earning Crypto! Wish I had bought much more Bitcoin back then! When you spend $100 both you and I get $10 in Bitcoin. Let’s get it started! Get Started On Coinbase!

Research Materials

ARK Investments has provided a detailed investment report for 2021 and beyond. It covers what’s anticipated for the following:

  • • Bitcoin and Cryptocurrencies
  • • Electric Vehicles and Green Energy
  • • 3D Printing and Much More
Must Read! Reddit Profit Taking Article
Reddit Article
Need Money For Your Business?

StashInvest


JOIN STASH, GET $20!
The best new Digital Bank and Investing Tool. Join Now!
COINBASE
Trade at the largest Crypto exchange in the US. Buy Crypto!
GS Partners Global
Buy G999 Crypto, get Passive Income Bitcoin!I want in!

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Maintaining Self Care While Starting a Side Hustle: A How-To Guide

Photo Credit: Pixels.com

Article Content By: Courtney Rosenfeld

If you’re thinking of starting a side hustle, you aren’t alone. Zapier reports that one in three Americans has a side gig as a means of making some extra money alongside another job. While it’s great to get some extra cash, juggling your side hustle along with your other obligations can be tricky.

If you’re starting a freelance business as a side hustle, get organized from the beginning to save yourself administrative burden later. Establishing a limited liability company, LLC, can simplify paperwork like tax filing. Make sure to get an Employer Identification Number, EIN, which the IRS will need to identify your business for payroll taxes.

Setting up your business as a formal entity like an LLC can save time and stress later. You can also spare yourself worries by getting a handle on your finances. Rock Capital provides business and commercial financing so you have one less thing to worry about as you get your side hustle off the ground. They provide financial services that will help your business secure funding for things like working capital, equipment leasing and buying, construction costs and so much more!

Make a healthy diet and exercise part of your regular routine

It can be tempting to put all of your energy into your burgeoning business. However, it’s important to take the time to eat right and exercise regularly. Self offers tips for eating a nutritious diet when you’re short on time. For example, you can batch cook and freeze meals and buy pre-cut and pre-bagged produce.

There are also plenty of time-saving tips that can help you make space in your schedule for physical activity. If you don’t have time for a workout, make a concerted effort to walk as much as possible during the day. For instance, if you take public transport, get off one stop further away than you normally would.

Take time for mental and spiritual self care

Your mental and emotional wellbeing is just as important as your physical fitness. Make efforts to keep the stress that comes with starting a side hustle at bay. Mindfulness is one technique you can use. It not only helps minimize stress, it’s also linked with entrepreneurial success and innovation.

No matter how busy you are, take at least 15 minutes out of every day for self care. During this time, focus on doing something that’s for pure enjoyment and pleasure—not any practical purpose. There are many easy activities you can do in 15 minutes, like savoring your favorite snack, writing in a journal, or reading.

Find ways to unwind after the work day and get a good night’s sleep

A good night’s sleep is an essential component of self care. It is proven to restore your energy, improve levels of motivation, and even support your immune health. Plus, it leaves you refreshed and ready to tackle the challenges of running a side hustle. Make your bedroom into a soothing space that’s conducive to sleep by investing in new sheets, getting blackout curtains, and turning on a white noise machine.

You can also help improve your quality of sleep by practicing good habits before bed. For example, try to set a strict sleep schedule, getting up and going to bed at the same time daily. Avoid using blue-light-emitting devices before bed and steer clear of caffeine and alcohol, which can disrupt sleep patterns. I recently came across the Oura Ring which is wearable technology that helps to manage sleep patterns in a fun and smart way. Check out this article on www.workoutcave.com for 10-tips to better sleep.

Juggling your side hustle and self care doesn’t have to be impossible. Use the above tips to strike the right balance.

For more content to help you thrive in business, check out Rock Capital. We help entrepreneurs find success through financial guidance. Find out more.

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Stock Market Summary – 8/6/21

Alternate text

The VectorVest Colorguard is Neutral this morning after this morning’s Jobs report which showed strong gains in wages and employment. The unemployment rate ticked down to 5.4% from last month’s 5.9% and an expected rate of 5.6%. 

Although job gains came in better than expected, the new Delta Variant of COVID is raising cause for concern as hot spots begin to crop up and many are still afraid of being vaccinated. This is causing mixed results today in the market, which as of 11:25AM stands here:

  • • DOW – up +0.37%
  • • Nasdaq – down (-0.63%)
  • • S&P – up 0.04%
  • • Small Cap 2k – up 0.21%
  • • VIX – down (-2.08%)
Market Sentiment
RoboTrader Portfolio as of 8/06/21

Here are my RoboTrader Portfolio holdings as of this morning. To note, all trades were automatically placed on a paper trading account at 11:10AM EST today.

Short-term indicators remain mostly Neutral which is causing a selloff in some sectors such as Leisure (Toys/Games) which is down more than (-2.0%). And given that the VV call is DOWN, it doesn’t currently bode well for share appreciation. 

Etrade Portfolio Stock Spotlight

AGFY – develops advanced and precision hardware and software grow solutions for the indoor agriculture marketplace. It offers Agrify Precision Elevated cultivation solution that combines integrated hardware and software offerings with a wide range of associated services, such as consulting, engineering and construction. The Company offers its modern solutions to cultivators across various commercial segments including fruits, vegetables, hemp and cannabis. Its business model includes substantial equipment sales for the Agrify Vertical Farming Unites (AVFUs) as well as recurring software-as-a-service (SaaS) revenues for Agrify Insights. 

I purchased this high performer about a month ago and it’s done very well. It’s currently Buy rated within VV and is sporting strong technicals and we’ll see how fundamentals are developing next Thursday as an earnings call is scheduled. Buy at $21.12.

STOCK RECOMMEDATIONS

TX – steel products producer making finished and semi-finished steel products and iron ore, which are sold either directly to steel manufacturers, steel processors or end users. The Company operates through two segments: Steel and Mining. The Steel segment includes the sales of steel products and the Mining segment includes the sales of iron ore products, which are primarily inter-company. The Steel segment comprises three operating segments: Mexico, the Southern Region and Other Markets. In the steel segment, steel products include slabs, billets and round bars (steel in its basic, semi-finished state), hot-rolled coils and sheets, bars and stirrups, wire rods, cold-rolled coils and sheets, tin plate, hot dipped galvanized and electrogalvanized sheets and pre-painted sheets, steel pipes and tubular products, beams, roll-formed products, and other products. In the mining segment, iron ore is sold as concentrates (fines) and pellets.

I recently purchased this in my E*Trade portfolio and it’s up 5% now VectorVest is sending Buy signals. Strong Technicals and improving Fundamentals, buy at $52.13.

STASH INVESTING – FREE STOCK OPPORTUNITY

My aunt started using STASH last summer to save, bank and invest. After seeing how it worked I decided to try it out myself. Since then, I’ve seen some amazing investment gains and have grown to love using the STASH Card and earning stock back from purchases. 

Investment Returns

Up 196% since August 2020

Stash Impact

$821 saved by Rounding Up and making auto transfers

Yesterday I earned a small amount of educational stock Chegg (CHGG) to go along with 7 other freebies over the past month. Next Wednesday night at 8PM STASH is giving away more FREE Stock so stay tuned! If you’re not signed with STASH, now might be the best time to take control of your saving and investing. Click here to signup!

PARTY STARTS EVERY WEDNESDAY AT 8PM! GET STASH NOW!

CRYPTO Corner

I’ve been using Coinbase for the past 3 years and find it super easy to use for buying, moving and earning Crypto! Wish I had bought much more Bitcoin back then! When you spend $100 both you and I get $10 in Bitcoin. Let’s get it started! Get Started On Coinbase!

Research Materials

ARK Investments has provided a detailed investment report for 2021 and beyond. It covers what’s anticipated for the following:

  • • Bitcoin and Cryptocurrencies
  • • Electric Vehicles and Green Energy
  • • 3D Printing and Much More
Must Read! Reddit Profit Taking Article
Reddit Article
Need Money For Your Business?

StashInvest


JOIN STASH, GET $20!
The best new Digital Bank and Investing Tool. Join Now!
COINBASE
Trade at the largest Crypto exchange in the US. Buy Crypto!
GS Partners Global
Buy G999 Crypto, get Passive Income Bitcoin!I want in!

I'm an image

My LLC and Brand Name which covers Digital Marketing & Analytics Consulting

This is a marketing message from Rock Digital, LLC as sent from chuckg2036@yahoo.com. Please reply to sender with any questions or to opt-out from this newsletter.

Rock Digital LLC © All rights reserved Ph: 877-670-1590 | larry@rockcapassoc.com | www.rockcapassoc.com

Stock Market Summary – 08/05/2021

Alternate text

The VectorVest Colorguard is Mildly Bullish this morning as Jobless Claims drop to 385,000 and more companies beat earnings estimates. Meanwhile, inflation fears and the Delta variant of COVID continue to keep the market in check and unable to piece together consistent daily gains. The VV sentiment is to buy safe, undervalued stocks currently rising in price. 

Stock futures have fluctuated today as investors look ahead to U.S. jobs data and remained concerned that inflation could hamper the economic recovery. That said, here’s where the market stands at 12:15am EST:

  • • DOW – up +0.57%
  • • Nasdaq – up 0.66%
  • • S&P – up 0.41%
  • • Small Cap 2k – up 1.72%
  • • VIX – down (-2.89%)
Market Sentiment
Alternate text
RoboTrader Portfolio as of 8/05/21

Here are my RoboTrader Portfolio holdings as of this morning. To note, all trades were automatically placed on a paper trading account at 12:15PM EST today.

Short-term indicators have turned Mildly Bullish and the auto-trader added 2 positions today, both of which are up! 

Etrade Portfolio Stock Spotlight

AGFY – develops advanced and precision hardware and software grow solutions for the indoor agriculture marketplace. It offers Agrify Precision Elevated cultivation solution that combines integrated hardware and software offerings with a wide range of associated services, such as consulting, engineering and construction. The Company offers its modern solutions to cultivators across various commercial segments including fruits, vegetables, hemp and cannabis. Its business model includes substantial equipment sales for the Agrify Vertical Farming Unites (AVFUs) as well as recurring software-as-a-service (SaaS) revenues for Agrify Insights. 

I purchased this high performer about a month ago and it’s done very well. It’s currently Buy rated within VV and is sporting strong technicals and we’ll see how fundamentals are developing next Thursday as an earnings call is scheduled. Buy at $19.26

STASH INVESTING – FREE STOCK OPPORTUNITY

My aunt started using STASH last summer to save, bank and invest. After seeing how it worked I decided to try it out myself. Since then, I’ve seen some amazing investment gains and have grown to love using the STASH Card and earning stock back from purchases. 

Investment Returns

Up 196% since August 2020

Stash Impact

$821 saved by Rounding Up and making auto transfers

Yesterday I earned a small amount of educational stock Chegg (CHGG) to go along with 7 other freebies over the past month. Next Wednesday night at 8PM STASH is giving away more FREE Stock so stay tuned! If you’re not signed with STASH, now might be the best time to take control of your saving and investing. Click here to signup!

PARTY STARTS EVERY WEDNESDAY AT 8PM! GET STASH NOW!

CRYPTO Corner

I’ve been using Coinbase for the past 3 years and find it super easy to use for buying, moving and earning Crypto! Wish I had bought much more Bitcoin back then! When you spend $100 both you and I get $10 in Bitcoin. Let’s get it started! Get Started On Coinbase!

Research Materials

ARK Investments has provided a detailed investment report for 2021 and beyond. It covers what’s anticipated for the following:

  • • Bitcoin and Cryptocurrencies
  • • Electric Vehicles and Green Energy
  • • 3D Printing and Much More
Must Read! Reddit Profit Taking Article
Reddit Article
Need Money For Your Business?

StashInvest


JOIN STASH, GET $20!
The best new Digital Bank and Investing Tool. Join Now!
COINBASE
Trade at the largest Crypto exchange in the US. Buy Crypto!
GS Partners Global
Buy G999 Crypto, get Passive Income Bitcoin!I want in!

I'm an image

My LLC and Brand Name which covers Digital Marketing & Analytics Consulting

This is a marketing message from Rock Digital, LLC as sent from chuckg2036@yahoo.com. Please reply to sender with any questions or to opt-out from this newsletter.

Rock Digital LLC © All rights reserved Ph: 877-670-1590 | larry@rockcapassoc.com | www.rockcapassoc.com

5 Tips To Create A Home Business

Image Source: Unsplash Content Credited To: Julia Mitchell

Establish and Run Your Home-Based Business With These Tips

One of the many advantages of starting a business at home is flexibility. However, you can also launch and develop a business part-time or make it your full-time job to create an income source, pay off debt, or fulfill your dreams. Here are a few tips on launching and building a profitable home-based business.

Find a Good Business Idea

Most entrepreneurs know what kind of company they want to launch before starting it; if you don’t, you can find a product or service to offer if you consider a few things . For instance, if you have worked in a field for many years, you can take advantage of the skills and knowledge you amassed and eventually put them to work for you. However, you can also start anew in an industry you love and make your way up to the top with efficient marketing strategies and a good business plan.

Determine the Operational Costs

Your company will require a solid business plan to present to any investors when looking for funding. The best place to start would be estimating the basic cost of operations, which will contour and help you gauge how much money you need to produce the item or deliver the service you intend to offer. These expenses include production costs, shipping, taxes, rent for an office or storage space, employees’ wages, etc. Knowing your operational costs will be crucial to determining if your start-up will be profitable since you need to make more than this ground line to stay in business.

Additionally, you want to ensure that you accurately predict business expenses if you’re looking to raise capital for the venture. Standard methods to raise money include angel investors, personal loans, business grants, crowdfunding, etc. Numerous services also offer countless programs; you can find them through a firm like Rock Capital & Associates, which can develop the best financial path for your business and provides counselling and management solutions. Using a specialized service makes things easier for yourself and can develop your company beyond your wildest dreams.

Get Bank Loan
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Identify Your Target Market

As soon as you come up with your business idea, start identifying your target market. A target market is a specific group or segment of the population that is likely to take an interest in your products or services. You should research and determine your target market to make sure there are sufficient customers available. This is also a great way to find out how your competition operates so you can differentiate yourself from them.

Advertise Your Business

Setting up your business’ web design is a must , as it is an essential form of marketing. Keep it simple, but remember that you have less than five seconds to grab a prospect’s attention. Advertising is crucial as it allows you to create messages that will reach your target market and show them how you are different from your competitors. To have successful marketing campaigns , ensure your customers are aware of your brand and engage with it. Use social media, place ads on different platforms, and share your content to make the best of this tool.

Create the Infrastructure

To be successful, you want to invest time into finding gear and technology that feel good to you and help you save money and work. Some key considerations include ergonomics at your working station, accounting software, a records system, etc. ​From doing taxes to paying your employees, you’re going to want a solid record system to help your company run smoothly and efficiently. Invest in labels, file cabinets, and digital records software to keep your management segment organized and up to speed.

Establishing a payroll system for the first time can be overwhelming, but you can make things easier with software that makes the most sense for your business and is compatible with the system. Today, there are numerous payroll apps on the market, but some allow you to calculate and schedule the payroll automatically. It’s also wise to use software with a tax filing and benefits function, as well as a same-day direct deposit option for your employees, if you want to keep things organized and up to date.

Never mind what business idea you have – you can make it successful from your home and have the flexibility you need. Just ensure that you work out the operational costs, know who your target audience is, advertise your offering to them, and implement a solid system to keep your venture organized and running smoothly.

Rock Capital & Associates has countless business programs available for their clients. Hiring a business finance consultant with the company gives you access to hundreds of funding sources with excellent interest rates and terms. Connect with the team via the Rock Capital & Associates website or by calling (877) 670-1590 today.

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Add Docs To Smartbiz PPP Loan

Smartbiz Document Upload

Many of my clients who’ve recently applied for the PPP Loan 2nd Draw through my Smartbiz portal have had to upload additional documents. The problem with this process is that after the loan process is completed, there’s no specific space for document uploads.

Given the above, we’ve learned to “step-through” the loan application process in order to submit additional documents and keep the loan process moving forward.

Below are the steps required to add documents to your Smartbiz PPP Loan:

  1. 1. Select View Your Loan Application
  2. 2. Select Financials
  3. 3. Select View
  4. 4. Begin Payroll Analysis
    1. a. Select Continue on “Business Info”
    2. b. Select Continue on “Choose Document Type”
    3. c. Select Continue on “Choose a Method”
    4. d. Select Continue on “Calculate Loan Amount”
  5. 5. On Upload Documents – Payroll Report:
    1. a. Drag and Drop the required document
  6. 6. Select “Continue” to complete the process then exit

The above has worked in each of the cases my client was required to upload additional documentation. Documents can be uploaded for IRS Forms, Payroll Forms or Miscellaneous Reports like an Income Statement.

If you haven’t yet applied for the PPP Second Draw, start your process now with Smartbiz!

3 things about the EIDL loan Application

EIDL Loan

I recently applied for the EIDL loan and was very surprised about how short and quick the application process was. Before I get into my 3 key takeaways, let me give a quick overview of what it is and who qualifies:

EIDL QUICK HITS

The loan is designed for Small Businesses, Sole Proprietor, Independent Contractor and Non-Profits. The applications are administered by the Small Business Administration. Notable qualifications and loan details are as follows:

  • • Business must employ less than 300 employees
  • • Be located in Low Income Community
  • • Experience 30% loss in sales (economic loss) in 8 week period covering 3/2/20-12/17/21
  • • There’s a $10,000 Advance feature which is based on # of Employees
    – provides $1,000/Employee up to 10 people (may no longer be available)
  • • Advance doesn’t have to be repaid and is considered Working Capital
  • • Loan and can be used for normal OPEX plus Fixed Debts, A/P and Payroll
  • • Not intended for lost sales, profits, expansion or Long Term Debt
  • • 30yr fixed rate at 3.75% for businesses and 2.75% Non-Profits
  • • Loan more than $25k requires collateral and Security Agreement
  • • Cannot compete with Private Sector lending or buy new Capital Assets
  • • Max $2M loan amount and can be combined with physical disaster loan

Now that I’ve covered the basics of qualification, use of funds and the loan details, here are my 3-takeaways from working through the application:

3 KEYS TO THE APPLICATION

  1. 1. It’s quick and easy to apply….only takes 10 minutes if you’re prepared
    • • Complete your personal and business profile
    • • Classify the business entity and line of work (Retail Trade, Manufacturing, etc.)
    • • Provide identification (EIN/SS, DOB, etc.)
  2. 2. Complete the financial section which only asks for Gross Sales and COGS
    • • If you’re a Sole Proprietor/Independent Contractor and don’t have traditional COGS, think of Cost Of Services provided instead.
    • • Focus on what impacts generating the sales transaction.
    • • Raw Materials, Labor, Commissions, Product Purchases, Shipping Costs, Merchant Account Fees and things that Directly impact Sales.
  3. 3. Certify whether you’ve a run-in the law, which includes:
    • • Being convicted of a crime or the subject of an indictment.
    • • Been suspended from contracting with the Gov’t or receive Grants.
    • • Recently been arrested.

Take your time to think about item #2 as this will directly impact your ability to qualify. Click here for more detail and a sample calculation for a Beauty Salon.

PPP For The Self-Employed

PPP Loan

As many may be aware, the second coming of the COVID-19 Stimulus Plan was signed into law on December 27, 2020. It provided for $900 Billion of support including extended unemployment benefits, rent relief and eviction protection as well as funds for small to medium sized businesses hit hard by the pandemic.

RULES FOR SELF EMPLOYED

Self-employed individuals have found the rules around PPP difficult to understand and question whether they qualify, especially since many were either told that during the first draw or were denied as many larger companies received much need working capital.

One thing to know is that the new Stimulus Bill is much more inclusive and is geared more towards the unemployed and Mom and Pop businesses. Here are the qualifications:

  • In Business on or before February 15, 2020
  • Had self-employment income (e.g. independent contractor or sole proprietor)
  • Reside in the United States
  • Filed or will file a Form 1040 Schedule C for 2019 or 2020

What’s important to note is that 1099 employees should not be included in the calculation. The SBA (Small business Association) provides guidance on how to do this. But typically, the qualifying amount is 2.5x Payroll or what’s on Schedule C, Line 31 as the Net Profit. You can view or download the SBA document here.

STEPS TO CALCULATE

Use these steps if you have no W-2 employees in your business:

  1. Compute 2019 or 2020 payroll or use Net Income from Schedule C as
    1. 2019/2020 Form 1040 Schedule C line 31 net profit amount
    2. 2019/2020 Form 941 Line 5c gross wages and tips paid
    3. 2019/2020 Form 1040 Schedule C Line 9 employer contributions and and state and local taxes assessed on employee compensation.
  2. Divide “1” above by 12 to get average monthly amount
  3. Multiply “2” above by 2.5 to get your PPP Loan estimate

To note, if you are using 2020 and have not yet filed a 2020 return, fill it out and compute the value annualized up to $100,000 and prorated for the reporting period (if you are filing/using Quarterly 941). The Line 3 amount must be $100,000 or less. If not, reduce it to $100,000 and if less than Zero set to Zero.

You will not qualify for amounts less than Zero. Similar rules and steps are provided in the SBA document for business with employees. You can find that information here starting on page 2.

We have partnered with Smartbiz Loans who’s funded more than $4 Billion in loans since 2013 to make the PPP Loan process quick and efficient. You can prequalify in 5 minutes and complete the entire process in less than an hour if you have documentation (CARES Act Payroll Reports, IRS Form 941, IRS Form 1040 Schedules C or E and Personal documentation).

Or Contact Rock Capital Associates at (877) 640-1590 to start your application.