For anyone that runs their scrapping business as a true business and files appropriate taxes. You should look into the PPP loans. Good money with forgiveable loans.
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For anyone that runs their scrapping business as a true business and files appropriate taxes. You should look into the PPP loans. Good money with forgiveable loans.
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My scrapping LLC has lost money over the last seven years so it is considered a hobby, rightfully so. Based on the criteria, I could have qualified. All of the profits have been invested into equipment and tools. My wife's LLC applied and was approved. A friend applied and received two months worth of his payroll as a loan and the loan was forgiven within two months. For the record, it did not make a difference in either of the businesses, only in the profit margin.
Maybe we should target those in need, not those that want.
Give back more to this world than we take.
Metal Recycling Entrepreneur
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Originally Posted by mthomasdev
Isnt the only forgivable portion, the portion that goes to paying payroll?
Meaning, yes if you run a scrap operation with employees, the PPP loan is a no brainer as the gov essentially will pay them for you for a while, via the forgivable PPP loan, to keep people employed and businesses afloat...
Most here are on man shows, that dont have payroll, so even though we may be able to get the loan, no part of it will be "free money" that will get forgiven by the government.... but it is very low interest loan if you need the cash to stay afloat, but ya gotta pay it back...
This is just from what I have heard, if you know otherwise fill me in.... me and my wife both have businesses (sole-props)
My boss at my day job I think got the PPP loan, but I think I heard him say it is capped at previous years annual payroll, and has to go to payroll, to be forgiven.
Last edited by kss; 03-24-2021 at 06:52 PM.
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KSS,
You should really look into it. For sole proprietorship, you count as payroll. Without employees, loan is based on 20.83 percent of line 7 (gross income) on your schedule C, line 7 not to exceed $100k. That amount should be all forgivable. It's worth a look.
Metal Recycling Entrepreneur
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I was talking with one of the clam diggers last year. He's self employed as a one man operation got around 20 K. He just had to write himself a paycheck every week till the amount was expended.
Last year's PPP was also applicable for paying rent & utilities to some degree. You might check the rules on this year's version.
==================
Off topic ... i was talking with a younger couple that had six kids last week. The government dropped ten grand in their account with the latest 1,400.00 $ stimulus. ( You better start gettin' busy there guys ! )
Metal Recycling Entrepreneur
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Unfortunately, that's not the idea.
The main purpose is to get tons of newly created money out there and heat up the economy. They are literally throwing it out the door to anyone who will take it right now.
The last time they did this was back in the early 2000's during the first half of Dubya's administration. The Federal Reserve shoved it out the door to the big banks. The big banks loaned it out to anyone who wanted to buy real estate regardless of their creditworthiness. That led up to the sub prime mortgage crisis that began to hit in 2007 which triggered the great recession at the end of George junior's administration.
It's really not political. It's just an obnoxious economic thing they do sometimes. They flood the economy with newly created money and debase the currency in order to heat things up.
It's kinda like taking your Friday paycheck and going on a wild bender for the weekend. It's like " party on " and "let the good times roll" for awhile.
In due time .... Monday comes around. You have to go back to work, you're sick as a dog from overindulgence, you're even deeper in debt, and you're flat a$$ broke with no means to pay.
Ohh well .... i think we all know how this will likely end. It's springtime ... the birds are singing and the sun is shining. Work hard this year and put up just as much as you can for a rainy day. Help someone in need if you can. It doesn't take a whole lot to help improve someone else's lot in life if it's done right. Just a bit of kindness & charity to get them through a rough patch.
Metal Recycling Entrepreneur
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Hmmmm VERY interesting. I had not known this..... will definitely look into it now.... everyone loves free money! thanks!
Metal Recycling Entrepreneur
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Doesnt have to be here, you can message if youd prefer, but if you can point me towards some documentation on this if you have any/came across any I would appreciate it. Not for my business but for my wifes. She is a wedding photographer and her business just got completely obliterated by covid and everyone canceling weddings..... she did qualify for unemployment, so not sure if PPP loan and unemployment is double-dipping or not, but would like to read up on it some more if you got any details/links/documents
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The easiest way is to contact your bank as they process it. Last I knew the deadline is the end of the month, but they recently made some changes and might extend the deadline.
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https://www.sba.gov/funding-programs...ection-program
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The deadline is now May 31st. Everyone should go call their bank right now about them.
If you're a sole proprietor, you take 10% every week for 10 weeks, and write on the check "Owner's Compensation Replacement", and then the loan is forgiven (Unless you somehow manage to fire yourself), meaning you just got free money.
Note to self: DO NOT FIRE ME. At least not for 10 weeks
More than Scrap Value Shipment Tips: http://www.scrapmetalforum.com/scrap...tml#post242349
Metal Recycling Entrepreneur
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I did end up requesting one. Who turns down free money!The deadline is now May 31st. Everyone should go call their bank right now about them.
If you're a sole proprietor, you take 10% every week for 10 weeks, and write on the check "Owner's Compensation Replacement", and then the loan is forgiven (Unless you somehow manage to fire yourself), meaning you just got free money.
Note to self: DO NOT FIRE ME. At least not for 10 weeks
Is there any reason you cant pay yourself 100% as soon as you get it then request forgiveness later?
I had not heard that there was any required schedule to making payments to yourself. Basically my plan was for the loan to get deposited into my business account, then all moved to my personal account. There we go, 100% of the money was paid out as "owner compensation" which is above the 60% requirement to be forgiven, so it should be forgiveable
Last edited by kss; 04-02-2021 at 01:39 PM.
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I don't believe there is any requirement on how often and how much you pay yourself each time.
Glad to see that others were able to take advantage of this.
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BUYING ALL COMPUTER SCRAP WORKING OR NOT
CHECK OUT MY BUYERS THREAD http://www.scrapmetalforum.com/scrap...nic-scrap.html
https://getjunk.net/Knox-County-TN-0...Recycling.html
Metal Recycling Entrepreneur
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Nothing fraudulent here. I completely truthfully filled out the application, and have the tax documents to prove all the numbers and question they asked.
We are the people who's these are supposed to be going to! People with small or side businesses. Banks and big business has always gotten free government money, bailouts, and tax breaks forever.... About time it's normal people's turn....
I'm sure all of us were affected by the rona in one way or another. I know I for sure quit doing scrapping and pickups for a few months when rona started and things were locked down. We are entitled to this money, and if you don't file for it and these PPP funds aren't depleted, then the surplus will just get roles into some stupid government program or useless project or something... Get that money yall
Metal Recycling Entrepreneur
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welp, I applied for it last week, and the money hit my account today. Almost seems too good to be true....
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Glad I was able to point you in the direction.
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I was in a tax seminar where they talked about the PPP loans. The guy said not to take it in one chunk- it looks kinda suspect if it truly was "Payroll" then. He recommended 10% every week, but I'm sure you could do bi-weekly 20% or something. I just did the 10% on mine- nice, simple, easy accounting.
That said, I'm not personally spending a dime of it until it's forgiven. I too don't tend to trust the government
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Just a reminder, for those that got PPP loans. It's forgiveness time. If you haven't heard from your bank, reach out to them.
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There is still more money out there from the American Rescue plan. Unfortunately, I don't qualify for what Massachusetts is now offering. I'm including a link to Massachusetts specific grants for people to take a look. Would suggest looking into your own state, if you run your scrapping as a business.
https://www.empoweringsmallbusiness.org/
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