Bonus - PPP

biz entities interview Jan 20, 2021

On this bonus episode of the podcast my guest, Kristy Runzer, CFP, about Paycheck Protection Program (PPP).


Join the Braden's Besties Facebook Group to hear Kristy's live Q&A about PPP with Braden on January 22nd.


PPP became available as part of the stimulus packages. It's a forgivable loan, meaning you receive the money as a loan but as long as you use it for certain things, it's a loan that gets forgiven. As a small business, PPP is more the route to go than EDIL (the SBA Economic Injury Disaster Loan program).


With round two of PPP now available, the first step is to determine if you qualify. Two pieces allow you to quality - 1) If you never got money in Round One you can apply like this is Round One. 2) If you did get money in Round One, the qualifier for Round Two is if you saw a 25% decrease in your revenue in any quarter in 2020 compared to that same quarter in 2019.

Ex: If Q2 in 2019 your revenue was $100,000 and in Q2 in 2020 your revenue was $75,000, that qualifies you.


1. If you are a Sole Prop, LLC, 1099 contractor, the qualifications would be to have a profit in your business in 2019. The way you figure out how much you qualify for is you take (2019 profit/12) then multiply it by 2.5. If you are an S-Corp and you have a formal payroll system then you take that payroll and multiple by 2.5. Example: $30,000 profit divided by 12 = 2500 multiplied by 2.5= $6,250


The deadline to apply is March 31st. You can apply directly through the bank where you hold your business bank account or if you don't have a business bank account there are other institutions like Blue Vine and Kabbage.


Breaking down the PPP application process, it's personal information, breaking down the numbers for how much you would qualify, included documentation which may include a Schedule C or profit & loss statement or bank statement.


2. Let's say you made $80,000 in revenue in 2019 ($20,000/quarter) but only $40,000 in 2020 ($10,000 per quarter) which would be a 50% decrease, more than the necessary 25%. You will need bank statements to prove your revenue so it's important to be on top of your bookkeeping. Always be totally honest in your application.


You need to have less than 300 employees and are required to use a minimum 60% or more for payroll or transferring it from a business account to a personal account if you don't have payroll. Contractors do not count towards payroll, only W2 employees. The 60% rule also applies if this is your first time applying for PPP.


If you don't have an S-Corp you will just draw from your business account to your personal account to pay yourself (an owner's draw). Learn more about how to manage your cashflow this way at


Within 10 months, be sure to get your loan forgiveness application submitted


Join the Braden's Besties Facebook Group to hear Kristy's live Q&A about PPP with Braden on January 22nd.


Hear more from Kristy on episode 19 of The Unf*ck Your Biz Podcast where she discusses how to get started saving to reach your financial goals.


Get in touch with our guest

Kristy Runzer, CFP

Visit On Route Financial online

Follow On Route Financial on Instagram


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