• Business Leaders


Updated: Jul 1

Small Businesses, Sole Proprietors, Self-Employed/Schedule C Filers -

Available SBA Funds - PPP by August 8th

With the SBA PPP and EIDL programs reopening - TIME IS OF ESSENCE. The PPP - Payroll Protection Program is only available through August 8th! The application should be located on your bank's website; and only available if your bank is a qualified SBA lender. Not sure, check the link. When funds are used as designated; it is highly likely the loan will be forgiven.

The EIDL - Economic Injury Disaster Loan is applied for and administered through the SBA. Selecting this link directs you to the SBA site and application. The application notes that it is available until 9/30/2020; however, will not be available once the funds have been distributed. With the exception of an EIDL Advance, the EIDL funds are not forgivable; but repaid at 3.75% over 30 years.

There’s actually too much info available. Our articles attempted to include information we qualified as important, accurate at the time of release; and hopefully helpful to really understanding how these programs work.

More comprehensive, colorful and entertaining information is available in Rachel’s Paycheck Protection Program ~ Progressively PIVOT Patiently article. It includes links to our hero, JJ the CPA. Want to master this? Watch JJ the CPA’s videos where his explanations help make the whole mess easier to understand. Rachel’s also has graphics😉

You can secure both the PPP and EIDL BUT YOU CANNOT PAY FOR THE SAME EXPENSES from both sources! Most commonly used as PPP for payroll, rent, utilities. EIDL funds are intended for payroll not covered by the PPP and other current and future expenses. EIDL funds should not be used to pay existing note payables.

While not timely, the US Treasury. does post updates and there have been numerous changes through the months - Assistance for Small Businesses – Application, Forms, Guidelines, FAQ. Need just the facts – US Treasury Fact-Sheet. The good stuff … Frequently Asked Questions posted on the Treasury site - FAQ

Included in the updated Treasury and SBA sites is information specific to PPP Forgiveness. The actual PPP Forgiveness application will probably be provided by your bank. There have been substantial changes, such as, previously 75% was to be allocated to payroll; the new requirement is only 60%; and, the 56 week requirement to use the funds was extended through 12/31/20. There will likely be more changes. With the original payroll requirements, having outsourced payroll would have been very helpful. Still, I am compelled to share my rant. . .


While we can provide a potential list of the full-gamut reports that support will payroll (even if, for some reason don’t tie-out;-(; OR, if you had ADP or Paychex – you could run their reconciled reports!

Please let me digress for a minute . . . I have spent too much of my work-life reconciling bad payroll; even sadder, most payroll managed in-house is off. While I’m good at it😉; trust me, it is worth the payroll ‘cost’ to be able to tell the service – ‘there’s a problem’ and let their team of folks correct it with the EFTPS, SUTA, Child Support/garnishment agencies and all of the required payroll reports! Trust me – it’s also cheaper!

Payroll is such a pivotal area of every business; and in reviewing and gathering this information; I have had to repeatedly reiterate (yes, I did feel the need for this necessary redundancy) how payroll is supposed to happen. If you are THE member of an S-Corp, should you be getting a W-2? Probably so, and warrants another conversation. Are your independent contractors really independent or employees?

Not suggesting they are the best; but ADP & Paychex are certainly the biggest and maintain a WEALTH of great info on their sites! With responsible, knowledgeable and convenient SERVICE being the most important aspects of your payroll provider; they are there - I was on the phone on Christmas DAY one year resolving a paycheck issue! Morgan of ADP and Steven Paul of Paychex excitedly represent their companies; understand their programs and specials; and are there to help!

We are not researching or trying to provide the best payroll solution; but acknowledging when this same information is required for the reporting to support the PPP expenditures; a payroll service will be appreciated. Thank you. I do feel better😉

  • SCHEDULE K-1 Form 1120S NO PERSONAL PAYROLL ISSUED - It’s OK to not issue payroll; as long as the S Corp makes no distribution to the owner-employee to avoid payroll taxes.

  • SCHEDULE K-1 PARTNERSHIP - If you are a partner and any portion of your ‘income’ was reported on your Schedule K-1 Box 14 - Self-Employed Earnings; these monies are reported on your personal Form 1040 Schedule SE.

Forgiveness of PPP funds, provided to a small business, were outlined in the US Treasury’s Fact-Sheet . . .

75% must cover payroll costs (reduced to 60%

25% (now 40%) can be used for rent or mortgage interest; and, utilities PAID over an eight-week period. (Note lease agreements, mortgages and utilities must have existed before February 15, 2020)

At this time, it states a ‘Request for forgiveness’ will be submitted to the servicing lender. The request will probably still include correspondence – certified and true. . .

  • Verification of the number of full-time equivalent employees (FTEs) and pay rates.

  • Payments

  • Rent payments OR Mortgage interest payments

  • Utilities

ALL SMALL BUSINESSES can utilize the PPP and EIDL; but is this the most optimal stance? If you have already applied for both programs; don’t stress (in fact, we haven’t figured out how to rescind an application). If you haven’t, MAYBE now is the time to be patient. Feel free to reach out and let us know where you are in your processes. We are happy to review, assess and counsel on your current status.

Make this easier on yourself now!

Open separate bank account(s) and ONLY process transactions for PPP or EIDL expenses!

There will be lots of other supporting documents to capture. Those of you that don’t currently download your vendor invoices and contracts from your emails – start now. If you don’t have a dedicated area to capture these docs – you really need our help.

Do you have a standard operating procedure (SOP) in place for making sure your PPP does not become a loan?

To maximize funding-forgiveness and cash flow there must be procedures.

We have SOP Solutions!


We have SOP.Solutions and are offering PIVOT PRICING!


Get a payroll service! THEY HAVE GREAT SPECIALS DURING OUR SOCIAL DISTANCING! Don’t hesitate to ask an introduction. I also have their cell numbers😉

ADP - Morgan Skiba Morgan.Skiba@adp.com

Paychex – Steven Paul Brown sbrown@paychex.com

Now more than ever, make sure your MANAGEMENT TEAM is SOLID! If you don’t have a PLAN; we have SOP.Solutions.

Is your company in Good Standing with the State of Texas?

Of course, a company should be in good standing to obtain funds; moreover, it’s best practices to check the Texas Comptroller of Public Accounts, annually in December, to confirm your business is noted as ‘Active’. [After the final Texas Franchise Tax extension.]

The actual certificate is now called the Certificate of Fact – Status; and is obtain from the Secretary of State. Per the SOS. . . “Although the comptroller's office no longer uses the term, "certificate of good standing" is sometimes used to refer to a certificate issued by the Texas Comptroller of Public Accounts regarding an entity's franchise tax account status. The comptroller's office now refers to these certificates as "certificates of account status."

Online using SOSDirect

Instructions for ordering using SOSDirect


By phone: (512) 463-5578

By email: corpcert@sos.texas.gov

By mail:

Certifying Team

Secretary of State

P. O. Box 13697

Austin, Texas 78711-3697

More comprehensive, colorful and entertaining information is available in Rachel’s Paycheck Protection Program ~ Progressively PIVOT Patiently article. It includes links to our hero, JJ the CPA. Want to master this? Watch JJ the CPA’s videos where his explanations help make the whole mess easier to understand. Rachel’s also has graphics😉

Leaders@SOP.Solutions   ~  713-396-3311      

4503 Acacia Bellaire, TX 77401

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