top of page
  • Christie Varner

WINNER, WINNER, CHICKEN DINNER! Updates to PPP just announced SIGNIFICANTLY impact Small Businesses!

Updated: Mar 7, 2021

If you'd rather watch the video associated with this, just click here or on the picture below ⬇️

Updates to the second round of the Paycheck Protection Program (PPP) plan announced on Sunday, February 21, 2021, by the Biden administration will have a significant impact on many small businesses.

The full White House fact sheet can be found HERE.

The 2️⃣ most SIGNIFICANT items are:

1️⃣ For 14 days, from February 24th through March 9th, 2021, only businesses with fewer than 20 employees can apply for PPP funds. This is the equivalent of getting the Disney front-of-the-line Fast Pass....only better because it puts your business at the front of the line to receive much-needed $$$ to help your business stay afloat and keep people employed! I do love a Disney Fast Pass though...


Schedule C filers - sole proprietors, freelancers, independent contractors, and single-member LLCs - we have some BIG news. Even bigger than a Disney Fast Pass for free!

Until this recent change, the calculation for the maximum amount of PPP funds your business qualified for has been based on the net profit Line 31 of your Schedule C. If you were in a net loss position - which so many were - you didn't qualify for PPP funds at all. Even if you did have profit, it was often very small, resulting in very small PPP funding.

The BIG CHANGE is that the calculation for the PPP loan will now be based on gross receipts - which is how much money your business took in for sales. If you made $100,000 in gross receipts, you'd now qualify for $20,833 in PPP funding ($100,000/12*2.5). If your profit had been only $10,000, you would previously have qualified for just $2,083 ($10,000/12*2.5). So you can see this impact has HUGE potential!

So, what should you do now?

Since this news just came out, the SBA has not yet updated their application and released the details of exactly how this will work. It's super important to watch the dates and the sources for all the PPP information since it is constantly changing. We expect that the guidelines will be very similar to those instituted recently for farmers & ranchers, but it really is a wait and see game at the moment.

If you are a business with fewer than 20 employees who qualify for PPP funds but haven't received them yet, here are some thoughts:

✅ If you don't file with Schedule C

➡️ you are at the maximum compensation allowed ($100,000) so go ahead and fill out your PPP paperwork & take advantage of this Fast Pass front-of-the-line timing to get your PPP funds.

✅ If you file Schedule C and have a net profit (line 31 of Schedule C) of $100,000 or more

➡️ you are at the maximum compensation allowed ($100,000) so go ahead and fill out your PPP paperwork & take advantage of this Fast Pass front-of-the-line timing to get your PPP funds.

✅ If you file Schedule C and have (1) a net loss or (2) your gross receipts are much larger than your net profit (which isn't over $100,000 maximum)

➡️ you might want to wait until the SBA releases the updated guidelines and applications. It seems you have a lot to benefit from with the change in the calculation to gross receipts as opposed to net income.

In the meantime, make sure your financial records are in order for 2020 so that this process is much easier when you do submit your paperwork. If bookkeeping overwhelms you, you are not alone. Here's some information on why taking some simple steps to take care of your bookkeeping will really help you out.

Everything shared here is updated as of February 28, 2021, to the best of my knowledge. However, this information is shared for educational purposes. Please seek professional advice from your accountant and tax advisor regarding your specific situation.

Our team at VICTORY Advisory Services is here cheering you and your team on and supporting you in your small business!

Are you as excited about this as I am for you?!! I am truly so happy thinking about the difference this money can make for your small business.

Comment below, connect with me on Facebook, LinkedIn, or Instagram, or email me. If you haven't already joined our free private Facebook group, Small Business Finance SIMPLIFIED, why not? Join us! I love to meet new people!

Cheering you on!



If you have W-2 employees, be sure to check out the updated and expanded Employee Retention Tax Credit (ERTC) rules that were recently released. Your business could qualify for up to $19,000 PER EMPLOYEE in tax credits. You'll want to be very strategic about applying your PPP funds and selecting your covered period. Here's training on that to help you out too.

Christie Varner, a 25-year CPA, is passionate about helping YOU, small business owner, gain confidence & take control of your business finances so that you can achieve your financial goals without sacrificing your happiness.

When she's not empowering business owners, she's eating Tex Mex, drinking coffee, playing with her Havanese dog, Max, or learning something (and will teach others soon!) from Google, YouTube or a book!

She'd love to connect with you so reach out & say hi!

21 views0 comments


bottom of page