Jennie Schottmiller, LMFT, CPA is the founder of Simple Profit—an educational resource for small business owners. As a licensed therapist and accountant, Schottmiller empowers private practitioners, coaches, and other entrepreneurs to understand and manage their own finances.
In this interview, Schottmiller gives an overview of the three financial options in the first Coronavirus Stimulus Package (CARES Act) from March 2020, including the Paycheck Protection Program and the Economic Injury Disaster Loan. If you prefer to listen to the interview in audio format, click here to download an mp3 audio file.
What is the CARES Act?
1. Unemployment program
2. Economic Impact Disaster Loan (plus Grant)
3. Paycheck Protection Program Loan (with Forgiveness)
PPP Steps – 1. Determine need and update accounting records
PPP Steps – 2. Find a bank and apply
PPP Steps – 3. Spend money in 4 areas that are forgivable
PPP Steps – 4. Track spending in a spreadsheet
PPP Steps – 5. Apply for forgiveness at the bank
4. How long does it take to apply?
5. Where can I find more information?
Your Most Pressing Questions, Answered
We gathered questions from the SimplePractice community for Jennie to answer in this special segment. Click the questions below to jump to a specific question, or click the chapter marks on the video timeline.
1. As a solo practitioner, should we apply for EIDL or PPP?
2. Can you give yourself a “safety net” for the PPP?
3. Can you apply to these loan programs if you don’t have employees except yourself?
4. How does an independent contractor create a P&L?
5. Should I apply for the PPP now?
6. What are the risks of accepting a loan and what’s the fine print?
7. What’s the turnaround from PPP and EIDL application to approval and receipt of funds?
8. Should I be concerned about getting into debt?
9. Can the avg monthly income calculated for the PPP loan be from the last 12 months or can it only be calculated from 2019 income?
10. What can I use to show Payroll in place of a 940 form
11. How will this impact my taxes next year?
12. Do I need to have at least one employee to qualify for the EIDL loan?
Disclaimer: Jennie Schottmiller and SimplePractice are providing this information for educational purposes only. This information is not substitutional for professional assistance. Please consult a professional before making any legal, accounting, or tax-related business decisions.
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