07 Jun Paycheck Protection Program Reduction of Income Tool
One, you're running a business. Whether you planned to or not, you are. You're legally classified as such, you pay taxes as such. So, treat it that way.
This is a business loan, they're going to ask for business documents
The biggest reason comes down to documentation. As I write this, the specific rules and how-to's haven't been released yet. Like I said earlier, all that independent contractors needed for documentation the first time around was a Schedule C. I don't know the exact details of what they'll require this time.
Why would it be different? Last time everything was based on annual profits. This time, quarterly revenue is a qualifier. You need to demonstrate that.
In the recently released guidance from the SBA on the Paycheck Protection Program 2.0 Second Draw loans, they state that they'll be looking for documentation of income reduction.
Such documentation may include relevant tax forms, including annual tax forms, or, if relevant tax forms are not available, quarterly financial statements or bank statements.