Tag Archive for: SBA PPP

SBA PPP Loan Paperwork

The Small Business Administration (SBA) has forgiven over 98% of the total Paycheck Protection Program (PPP) loan value that borrowers requested them to forgive; recently, however, SBA has begun to issue more forgiveness PPP loan forgiveness denials.

Many of these recent denials issued by the SBA are not consistent with their own guidelines. Borrowers have received denial letters based on:

  •  Insufficient communication between SBA and lenders
  •  Misapplication of SBA’s Interim Final Rules (IFRs) or affiliation rules
  •  Mistakes by SBA surrounding the loss or misuse of borrower information

Borrowers should be aware that such denials are appealable. Consider challenging forgiveness denials if you believe SBA’s decision is in error.

Read our full guide to SBA’s PPP loan forgiveness denial below to learn more about how to appeal a denial, the criteria required for an appeal, and who can represent your company in the process. 

How Do I Know if My Business’ PPP Loan Forgiveness was Denied?

If SBA denied your application, you will receive an SBA Final Decision Letter in the mail. 

Learn more about what to do if your PPP loan is not forgiven, here.

How Do I Know Why My Business’ Forgiveness Application was Denied?

The first page of the Final Decision letter contains a section indented and in bold that provides the reasons SBA denied your request for forgiveness. It’s important to understand why SBA is rejecting the forgiveness application before taking action- such as appealing the denial.

Who Makes the Decision on PPP Forgiveness?

The decision to deny your PPP loan forgiveness can be made by:

  • Your lender (i.e. bank, credit union)
  • The Small Business Administration (SBA)

How Much Time Do I Have to Appeal a PPP Loan Forgiveness Denial?

You must respond to SBA and submit your appeal within 30 days of the date listed on your SBA Final Decision Letter.  The timeline for SBA forgiveness appeals is inflexible. Once your initial 30-day period expires, you will lose your right to appeal SBA’s denial to forgive your PPP loan.

How Do I Appeal a PPP Loan Forgiveness Denial?

You must appeal denials of forgiveness to the SBA’s Office of Hearings and Appeals (OHA) within the 30-day period. 

File appeals through OHA’s case portal. Filings for PPP appeals received in any other manner may be rejected and not docketed for processing.

SBA states that OHA has jurisdiction over appeals where SBA has provided the borrower with a PPP final loan review decision finding the borrower:

  • Is ineligible for a PPP loan
  • Is ineligible for the PPP loan amount received
  • Used the loan proceeds for unauthorized uses
  • Is ineligible for the PPP loan forgiveness amount determined by the lender in its full or partial approval decision issued to SBA, or
  • Is ineligible for PPP loan forgiveness when the lender has issued a full denial decision to SBA.

Learn more about how to appeal an SBA PPP forgiveness denial, here. 

What Information Do I Need to Provide in the Appeal?

The criteria for an appeal filed with the SBA are strict. According to SBA, appeals must contain:

  • A complete, detailed statement as to why the SBA loan review decision is erroneous, with accurate information and legal arguments supporting the statement;
  • No more than 20 pages (not including attachments)
  • Clearly labeled exhibits and attachments

Due to the strict criteria of the appeal, we recommend hiring a qualified attorney to represent your business and help you to create a strong, successful appeal. 

Who Can Represent My Business in the Appeal Process?

An identified legal representative of the business or a qualified attorney must represent the appeal since the SBA PPP loan is a business loan and not a personal loan. To represent your business, one must be:

  • A shareholder owner 
  • An officer, or
  • An attorney

Who Can’t Represent My Business in the SBA Appeal Process?

The following positions are not legally entitled or allowed to represent businesses in the SBA appeal process:

  • Certified Public Accountants (CPAs)
  • Lenders 
  • General Employees

What if I Lose My Appeal?

Any appeal denied in the Office of Hearings and Appeals will have to go to a higher court. Why? Because SBA is a federal agency. The process of going to federal court can be extremely tedious and expensive due to the strict regulations. 

To avoid the costly and time-consuming process of going to the federal district court, we recommend hiring a qualified attorney to make sure you’re building a strong appeal for your business.

While each case is unique and this is not an indication of success in other cases nor a promise of results, our team at Milikowsky Tax Law has extensive experience in government audits and cases involving government entities from IRS to SBA and CSLB.  

Contact Milikowsky Tax Law and learn how we can help.

you have 30 days to appeal an SBA PPP Loan denial

The U.S. Small Business Administration (SBA) is currently going through loan forgiveness applications to approve or deny claims. Businesses that filed for a PPP loan during the COVID-19 pandemic and used the funds correctly can apply for loan forgiveness.

According to SBA, the loan is eligible for forgiveness if, “during the 8- to 24-week covered period following loan disbursement:

  • Employee and compensation levels are maintained,
  • The loan proceeds are spent on payroll costs and other eligible expenses, and
  • At least 60% of the proceeds are spent on payroll costs.”

Many businesses, however, who used the funds correctly, may receive a letter of denial from SBA. Continue reading to learn more about what to do if SBA denies your forgiveness claim.

WHAT TO DO IF YOU RECEIVE A LETTER OF DENIAL

If you received a letter from the SBA denying your PPP loan forgiveness request within the last 30 days, the clock is ticking. You have 30 days to respond and file your appeal. The timeline for SBA forgiveness appeals isn’t flexible. Once your initial 30-day period expires, you will lose your right to appeal SBA’s denial to forgive your PPP loan.

Steps to Appeal

Watch our full video to learn more tips about how to appeal an SBA PPP loan denial.

 

The following steps are not a complete guide; rather, a summary of action items.

  1. Review “Final SBA Loan Review Decision Letter”
  2. Confirm your deadline to appeal the SBA decision
  3. Gather your documents and facts to identify issues to raise in your appeal
  4. Review SBA’s prior legal decisions and rulings
  5. Draft your appeal (max 20 pages) and include exhibits (your evidence) and SBA’s Final Loan Review Decision Letter
  6. *You must include your legal arguments, facts, and legal authority to support your position to show SBA’s denial was “clearly erroneous” (there are additional requirements – see SBA’s website)
  7. Create an online account at appeals.sba.gov
  8. Answer all questions truthfully and completely when responding to SBA’s online questionnaire
  9. Identify a legal representative for your business to handle the SBA appeal
  10. Upload your appeal, exhibits, and SBA Final Decision Letter

We strongly recommend obtaining an attorney to represent your company, prepare, and file your formal appeal. Note that a CPA is not authorized to represent your business during the appeals process.

The ONLY individuals who can represent your company in the appeals process are: 

  • An owner
  • A company officer
  • An attorney

For more information on what to do if your PPP loan is not forgiven, read our article here.

 

act quickly to appeal an SBA PPP Loan forgiveness denail

small businesses who were denied the PPP loan forgiveness can still appeal for forgiveness.

Business owners who applied for SBA PPP loan forgiveness, but were denied have a limited time frame in which to appeal the forgiveness denial. Read on to learn about the process of appeal, what steps you must take, and the strict timeframe in which you must file to appeal a Paycheck Protection Program loan forgiveness denial from the Small Business Administration. *

*The information provided is general in nature and not intended to give legal advice or to create any type of attorney-client privilege

Watch the video below to hear John Milikowsy review how to appeal an SBA PPP forgiveness denial. 

 

 

 

If you received a notice of denial of your PPP loan forgiveness, the first step is to confirm who denied your application. The denial can come from:

  • Your lender (Bank, Credit Union or Fintech)
  • The Small Business Administration (SBA)

If your lender denied your application, you may not have appeal rights and you will have to consult with the lender themselves to find out the reasons why the forgiveness was denied and what options you have going forward. 

If the SBA denied your application, you will have received an SBA Final Decision Letter in the mail. The letter will have a date printed on it. If you wish to appeal your forgiveness denial, you must reply to SBA and submit your appeal within 30 days of the date listed on your final decision letter. Failure to reply and submit an appeal by or before the 30-day limit means you may forfeit your appeal rights, and you will have to repay the full amount of the PPP loan.

 

SBA Final Decision Denial Letter 

The first page of the Final Decision letter contains a section indented in bold that provides the reasons that SBA denied your forgiveness application. Before taking action, it’s important to understand why SBA is rejecting the forgiveness application.  

 

Find Evidence Through Resources 

Your obligation, and duty when filing an appeal is to show that SBA was clearly in error in denying your forgiveness application. In order to show that SBA made an error in denying your application, it’s crucial to research, provide legal arguments, and evidence to counter their claim. Evidence is critical to support your case.

SBA uses the Office of Hearing and Appeals (OHA) as a resource to hear cases from borrowers seeking appeals for unforgiven loans. Review their website to view their published prior opinions, one of them may relate to your case. 

The best recommendation is to hire a qualified attorney to make sure that you’re putting the most successful appeal together. Losing your appeal will necessitate filing with the federal district court, a costly and time-consuming process. There are myriad rules and regulations involved in federal cases.  Because SBA is a federal agency, any appeal denied in the Office of Hearings and Appeals will have to go to a higher court. 

The CARES act provided the general authority for SBA to issue PPP loans. This act also provides the limitations and the qualifications for which companies qualify for the loan, and for loan forgiveness. Your attorney will know the CARES Act and all of its intricacies.  IF you choose to represent yourself in your appeal, be sure to review the guidelines and details of loan forgiveness on their website. 

The Code of Federal Regulations (CFR) is another SBA published body of law. These regulations help clarify what companies were eligible or ineligible for the PPP loan and for loan forgiveness. For additional clarity, the CFR provides SBAs operating procedures.

By researching the laws and guidelines set forth by SBA, the CARES Act, the CFR guidelines, and gathering all of the documentation around your original application and denial, you can create a strong, coherent case for SBA to overturn their denial of forgiveness.  

 

Creating the Appeal

The criteria for an appeal filed with the SBA are strict.  The appeal must be 20 pages or less. In order to meet this limit, you must have your facts clearly stated so they can be easily understood. There is no room for excessive rambling or lengthy explanations. 

The appeal itself must provide legal authority and evidence to support your arguments, as well as include the SBA’s final decision letter. Without submitting the < 20-page appeal document and the original final decision letter, your case can be summarily dismissed, which waives your right to appeal. 

Since the SBA PPP loan is a business loan, not a personal loan, an identified legal representative of the business must represent the appeal (or a qualified attorney). Only one of three people can legally represent the business:

  • Shareholder owner 
  • An officer 
  • An attorney 

Who is not legally entitled or allowed to represent businesses in the SBA appeal process? 

  • Certified Public Accountants (CPAs)
  • Lenders 
  • General  Employees

Step one is to submit the appeal through the SBA online portal at appeals.sba.gov. The appeal form will ask you to create an account so you can log in and upload the appeal. Once your account is created, there will be other questions in the portal for you to answer to complete the process. Finally, upload the following documents into your account: 

  • SBA appeal
  • Decision letter
  • All evidence collected 

This information must be collected and submitted before the 30-day window closes. 

 

Post Appeal Submission

After your appeal is submitted, we recommend sending a copy of your appeal to your lender. They may defer your loan repayment for the loan amount until the SBA makes its final ruling. The time it takes for SBA to reach a decision varies. Best practice is to log into your portal account several times a week to check for messages or notices that indicate the status of your appeal.  At times, there may be requirements that you have to respond to. 

Throughout this process, it’s essential to respond in a timely manner. Missing deadlines is a mistake that can lead to a denied appeal– and thereby having to repay the loan amount in full. 

If your appeal was denied, you can request a reconsideration of the decision. If the reconsideration is denied, then the next step is to file a case in the federal district court. At this point, the cost and inconvenience of the process increase many times over. Because of this, be sure you take the proper time to file your initial appeal.  We recommend hiring an attorney who has experience with government agencies, is highly qualified, and understands your business.

 

Client Case study

One of our recent clients is a business owner whose PPP loan was denied forgiveness.  He came to us to see if we could help with his appeal to the SBA.  He and many other business owners in his industry applied for and were granted PPP loans at the start of the COVID-19 pandemic.  When it came time to apply for forgiveness, he had his bookkeeper submit all of the documentation to show that they had used the funds correctly to cover 75% payroll costs and 25% operating expenses.  Over the course of the next months, his fellow business owners received their forgiveness decisions and were all granted forgiveness by the PPP.  Except him.  Our client received a final decision letter of denial from the SBA. 

In this case, The bank recommended forgiveness but the SBA denied the forgiveness because his bookkeeper accidentally put the wrong NICS code. When he got the denial the business owner did not get on the phone himself with SBA but put his bookkeeper on the line with the agency to explain what his company does. The bookkeeper’s description of the business led them to believe he was in a prohibited industry… and they denied the forgiveness.

At the SBA the overwhelming number of cases has caused an influx of new hires, many of whom are learning the codes and structures of SBA loan forgiveness on the job.  This means there is less nuance in a rejection than a business owner might think.  Often, the SBA employees are simply matching NICS codes with industries, checking them against prohibited business lists, and issuing rejections. 

Our team researched the causes for the loan forgiveness denial, wrote the under 20 page appeal letter, gathered all supporting evidence, and argued on his behalf successfully to the SBA OHA.  

While each case is unique and this is not an indication of success in other cases nor a promise of results, our team has extensive experience in government audits and cases involving government entities from IRS to SBA and CSLB.  

For more information on SBA PPP loans, read our article here. 

 

PPP loans that are not forgiven have a 30 day window where you can appeal for forgiveness

 

PPP Loan Applications are Closed as Fraudulent Cases Emerge

 

Over the past year businesses flocked to the Small Business Administration (SBA) to submit applications to receive their share of the federally allocated Paycheck Protection Program funding. 

 

PPP loans were distributed to businesses struck hard by the ongoing coronavirus pandemic. Their intended use was to help keep workers employed by providing funding to support their ongoing paychecks following mass layoffs at the forefront of the pandemic. 

 

Since their initial rollout, it has been discovered that many businesses wrongly claimed PPP loans, resulting in millions of dollars of fraudulent claims. 

 

As of May 31, SBA has since closed the application for PPP loans. Despite being renewed by the federal government numerous times in both 2020 and 2021, businesses are no longer able to submit new requests for funding. 

 

As of May 23, SBA had approved over 11.6 million loans, totaling approximately $796 billion.

 

Even since the program application portal has been shut down, SBA will take approximately one month to process all existing applications submitted prior to the closure. 

 

While the initial rollout of the PPP loan distribution process brought with it thousands of fraudulent claims, it’s now expected that the program overall served as a starting point for SBA to continue serving small businesses into the future. 

 

While the general PPP loan applications have been closed at this time, SBA has been granted an additional $100 million to fund a pilot program providing support to underserved small businesses. This comes after speculation that despite the hundreds of billions of dollars in loans distributed over the past year, some of the neediest businesses were not able to receive the support they desperately needed. 

 

Additionally, Congress has recently granted SBA the responsibility to take charge of new relief programs for businesses in the restaurant and live-events industries, two industries that are returning to their former glory. 

 

The discovery of such a large number of fraudulent PPP claims has left all recipients at risk of an audit. While all loans disbursed of $2 million or more are guaranteed to be audited by SBA, all recipients, regardless of loan size are at risk of a potential audit. 

 

While SBA is auditing a large number of loans that were dispersed as part of the Paycheck Protection Program, those that are found to have been spent as they were intended have the opportunity to be forgiven entirely. 

 

If your business received a PPP loan and is confident that you utilized your funding for its intended purposes, there may not be a significant reason to be concerned in the event of an audit. However, in the event that you are the subject of an SBA audit, it’s imperative that you maintain ample records and documentation of all expenditures related to your receipt of a PPP loan. 

 

Another aspect of SBA audits to be concerned about is SBA’s relationship with other government agencies including EDD and IRS. In the event that your business is audited as a recipient of a PPP loan, there is the potential that SBA may uncover information in their audit that may lead them to involve additional government agencies to conduct further audits of your business. 

 

EDD and IRS audits hold significantly more complex potential outcomes and should not be considered lightly. While your business may not have otherwise triggered an IRS or EDD audit, SBA has the simple ability to pinpoint businesses for them to investigate further. 

 

If your business is the subject of an SBA, EDD, or IRS audit, the best practice is to reach out to an experienced tax attorney immediately. Making the wrong choices in the event of an audit has the potential to further incriminate you without your intention of doing so. An experienced tax attorney such as those on our team at Milikowsky Tax Law can support you through the complicated process of an audit and do our best to support the best possible outcome for you and your business. 

 

To get started working with our team, call or contact us today. At Milikowsky Tax Law, we keep businesses in business.

 

SBA loan underlined words and marker.

On March 27th, 2020, Congress passed the CARES ACT, which included provisions that allowed banks to lend up to $349 billion in the Paycheck Protection Program set up by the Small Business Administration.  The rules have changed several times and are likely to change again.  For the time being, businesses can apply for the SBA PPP program to cover two months of payroll and office expenses.

As our national response continues to shift, there are new resources for small businesses introduced almost every day. The unprecedented number of applicants quickly drained the initial funds set aside for qualifying companies. On April 23rd, 2020, a new bill passed to add additional funding to the SBA PPP. The legislation allocated $310 billion into the PPP to help small businesses during this time of uncertainty.

Holly Wade, the director of research and policy analysis for the National Federation of Independent Business (NFIB), the country’s largest small business association, tells sources she’s heard from countless small business owners with concerns about the application and payout process for the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).

“The list of frustrations is long,” Wade says, noting that many businesses had trouble finding bank lenders to accept their applications, especially if their bank wasn’t participating in the SBA’s program after the application process kicked off at the beginning of April.

Many small businesses across the U.S. that have already been approved for loans, but are still waiting for money to hit their bank accounts. Others are worried that strict guidelines over how they can disburse that money could ultimately do more harm than good to their business.

Ultimately, the decision to apply for one of these loans is up to you. Still, we strongly suggest that you consider evaluating your options and taking advantage of the right opportunity for your business. Need help making that decision? Reach out to one of our representatives today.

For more information on SBA loans and the PPP program, visit our resource page here.

Man and woman doing calculations

With the recent refunding of the SBA Paycheck Protection Program, there are a few details that you should know before you decide to apply.

If you take out an SBA PPP Loan, you are required to spend 75% of that loan on the payroll. Any additional unused funds will be deemed as a loan at a 1% rate for 2 years with a 6 month deferral period. The 25% remainder must be spent on operating expenses (rent, utilities, etc.). Any remaining funds will then be turned into a non-forgivable loan at a rate of 1% for the following two years.

For example, if you receive your loan and your employees make over 100k, and your accounts are considered to be “co-mingled”, so you won’t be able to determine where the loan funds were allocated. Therefore, your loan will become non-forgivable.

The best way to avoid this is to ensure that any funds from your SBA PPP loan should be well-documented and easily traced. Create a new account for your SBA PPP loans and track all funds used within that account. 

For more information on the SBA PPP loan, visit our COVID-19 resource page.

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A man working

As the world has been put on an indefinite hold, so too has the IRS.

During prior government closures, the IRS still was able to have essential workers be in federal buildings to process tax returns, sort mail, and process payments. The recent coronavirus pandemic blew that scenario out of the water due to health concerns, spread rate, and social distancing. 90% of US taxpayers e-file their tax returns online, but amended returns, IRS correspondence, and checks all still get postmarked and sent to Ogden, UT on a daily basis.

What was already an extremely outdated and behind the curve federal agency has now become akin to a snail in the race to process, post, and respond to the US taxpayer. Throughout a normal workday, the IRS receives hundreds of thousands of faxes, physical mail, checks, and online submissions, which would usually go through its normal route and receive a realistic response from the IRS. However, these days nobody is in to perform that work. The halls of the federal buildings are empty, so much so, that mail is piling up with no place to go. The IRS has recently started storing taxpayer mail in trailers on federal property due to the constraints of the US post office not being able to hold such large volumes for an indefinite amount of time .

The taxpayer community of 2020 balks at the idea that their IRS correspondence is being stored in a trailer and that someone will have to hand sort thousands of documents, but in reality what other choice was there? The IRS system is 30+ years old, tax representatives still have to fax documents, and IRS employees usually cannot respond to emails, a break in the chain was inevitable. Maybe this pandemic will spark the discussion of where our taxpayer monies should actually be going in the future.

Despite the fact that IRS is looking at a years-long backlog and the imminent need to update internal systems, the volume of tax filing anomalies that will surely occur in the 2020 tax filing season will likely trigger a wave of audits. If you will have vastly different income and debt statements on your 2020 returns, reach out to the team at MTL and have our IRS audit experts review your financials and 2020 tax filings.  A letter of explanation can change the way IRS sees your returns. Our team has defended hundreds of business owners facing IRS audit and helped avoid audit for dozens of other business owners. We are here to help.

With the current coronavirus (COVID-19) pandemic and the California stay-at-home order in place since March 19, 2020, several small California businesses have been forced to close doors. Consequently, hundreds of thousands of workers have been fired or furloughed.

The California Employment Development Department (EDD) has been overwhelmed with claims for unemployment insurance, as the numbers of Californians applying for the benefit increases every day. The receipt of unemployment insurance benefit is a right of California employees and those workers that are classified as independent contractors do not enjoy the same rights.

Nonetheless, on April 20, 2020, the EDD posted a clear invitation for independent contractors to claim they have been misclassified and should have been, in fact, treated as employees, which makes them entitled to several benefits, including, unemployment insurance. But, what does that mean for the businesses that hired those workers as independent contractors? An 100% chance of receiving a payroll tax audit notice from the EDD.

The filing of an unemployment claim by an independent contractor claiming to be, in fact, an employee is the number 1 reason why businesses get audited by the EDD in California. With the EDD encouraging independent contractors to file for unemployment insurance, the number of payroll tax audits will sky-rocket, harming hundreds if not, thousands, of small businesses that are already suffering from the coronavirus (COVID-19) pandemic.

If you own or operate a small business in California that uses/used the services of independent contractors and you have been impacted by the coronavirus (COVID-19) pandemic, you should be aware of the potential risks and consequences of being audited by the EDD for employee misclassification.

At Milikowsky Tax Law, we have the tools, the knowledge and the expertise to first identify the potential risks of an EDD payroll tax audit and guide you through the entire process. Don’t fight the EDD alone, Contact us at 858-450-1040 to discuss your options.

A calculator

From Fox Business to the Wall Street Journal to the Washington Post, all signs point to widespread audits of SBA PPP Loan recipients. 

Despite pressure, publicly held companies in business sectors from hotels to cruise ships are refusing to give back SBA PPP funds.  The SBA has  said that public companies with “substantial market value” and the ability to raise money through capital markets were not the intended recipients of the Small Business Payroll Protection funds.  Those funds, which were depleted by large loans taken by these companies and re-funded last week,  were meant to help small businesses, as the name of the administering agency would suggest. 

Treasury Secretary Steven Mnuchin announced on  Tuesday, April 28th  that the federal government plans to audit all loans over $2 million. The SBA PPP Loans are built to be forgivable if the recipient of the funds uses 75% of those funds to pay payroll costs and the remaining 25% for operating expenses.  The goal, in the midst of the massive unemployment wave is to keep employees on the payroll.

“Anybody that took the money that shouldn’t have taken the money, one, it won’t be forgiven and two, they may be subject to criminal liability, which is a big deal,” Mnuchin said in an interview on Fox Business. “I encourage everybody to look at this and pay back these loans now so we can recycle the money if you made a mistake.”

Shake Shack and Ruth’s Chris Steak House have already announced plans to return their SBA PPP loan funds. As of Wednesday evening, the SBA had approved nearly $90 billion in loans from more than 960,000 applications in the second round.

Businesses whose loans were under the $2m amount mentioned by Mnuchin should take heed. Impeccable financial records will be necessary to ensure loan forgiveness.  Business owners should put SBA PPP funds into a separate account, pay ONLY payroll costs with 75% of the funds and use a spreadsheet or other tool to track where the money goes.  There is almost certain to be a wave of audits as banks, the SBA and the IRS examine the veracity of claims that funds obtained through the SBA PPP were used for payroll and helped companies stay in business during the novel coronavirus pandemic, stay at home order and global economic slowdown.

Woman smiling while using a laptop

It’s safe to say that everyone has been impacted by the COVID-19 pandemic, but small businesses have been hit especially hard by consequential long-term closures and plummeting sales. While it’s important to be creative when cutting costs in times like these, it’s equally pertinent to keep your business aligned with rules set by the IRS and SBA — particularly if you are planning to apply for a PPP or EIDL loan.

As many business owners have laid off or furloughed employees, they’ve turned to independent contractors to finish the work that was left behind. “Gig workers,” as they’re often called, can be an effective way for businesses to stay flexible while on a tightened budget, but contracting them may also disqualify you for certain loans offered by the PPP and EIDL.

Keep in mind that 75% of your EIDL and PPP loans must be used for payroll expenses, which exclude the cost of hiring independent contractors — or anyone filing under a 1099. Understanding 1099 lax loan will serve you well when applying for an SBA loan, but it can also help you avoid paying a fine for AB-5 violations down the road. There are certain exemptions to the law, but you will need to fully understand the definition of an independent contractor and the tax requirements before making the decision to outsource your projects. 

In general, the fine print matters a lot when applying for SBA loans and we recommend that you review your application with a legal professional. Reach out today to schedule a consultation with Milikowsky Tax Attorneys.