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PPP loan/grant users BEWARE my bank account is frozen

MsBIGChoc

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Hi 1099 worker here! I got the loan and had it deposited into a personal account as I am an IC.
You did it wrong. You were supposed to write yourself a check. 1600/2
Take half of 1600 and pay yourself and then 4 weeks later pay yourself again.
Ic workers can use it on work related expenses and I've been told we can use it on other things outside of work but im not sure. So I'm keeping my for work related items.
I work as a contract teacher BTW.
 

SuccessfullyMe

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If everything is legit you’ll be okay, but sis you walking in the bank to withdraw 16 racks out of a personal account set off every alarm, bell, and whistle up in Capitol One.

I’m wishing you the best and I hope you get it sorted out because we can’t let that lady who you stomped out on that L train at Broadway Jct get the last laugh.

Wait what did I miss?
 

MsBIGChoc

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They only want to see if you paid yourself at 50%.
Independent contractors do not need business accounts only if you have an ein number
 

MsBIGChoc

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Also as other mentioned, as an IC we should have multiple accounts in these situations. I have about 3 accounts where I can deposit cash
 

lanoire

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If everything is legit you’ll be okay, but sis you walking in the bank to withdraw 16 racks out of a personal account set off every alarm, bell, and whistle up in Capitol One.

I’m wishing you the best and I hope you get it sorted out because we can’t let that lady who you stomped out on that L train at Broadway Jct get the last laugh.
Now this is a throwback!
 

DELETEMENOW

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This! Exactly ... that's the reason why you look like a scammer. Why don't you have a business account and why did you try to withdraw all the money?
Independent contractors dont HAVE to have a business account...you do if you have a LLC but gig workers do not.They see all my deposits they know ive been doing gig work for several years they never called or emailed me and told me I needed a business account...this is all new to me.I wanted to withdraw my money because im moving soon and I wanted to keep my money in a safe .Im on section 8 and you cant have over a certain amount in your account before they count it towards your rent.I haven't even gotten my income tax refund yet.I dont want 30k+ in my account fµck!ng up my housing.

I was going to use it as a downpayment on a house.Im still trying to decide if im going to get a mortgage or save for two more years and buy a modest house cash or have a very very small mortgage.
 

finessse

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Not to mention the whole ordeal was embarassing made me look like a scammer in that damn bank!
fyi trying to withdraw more than 10k from a personal account will raise red flags. i think it's stupid because it's your damn money and you should be able to withdraw it whenever you please. but maybe you should set up a separate business account and get an ein number
 

So Beautiful

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If you're filing your taxes as a 1099 using Schedule C, a business account is NOT required. However, it does make it easier to track expenses to have a business account.

True but she has to inform her bank she is a sole proprietor. The bank is required to report to the IRS. 1099/ Schedule C means self-employed. 1099’ s still have to pay taxes, etc. on that income.

Communicate and be open with your banker up front when setting up accounts. Even let them know when you have a large payment being deposited. They can provide great advice to help you, and keep you out of trouble.
 

LitIntuit

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@KaleQueen2016 @Who?Me? i dont file 1099, i file regular w2 as a full time employee but contracted through a 3rd party external to my company, it doesnt sound like i qualify, unless anyone knows something i dont?
 

CheapCoffee

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You should always have a business bank account when you are moving that kind of money.

They are used to seeing businesses shuffle large amounts.

I guess you learned a valuable lesson.
 

Who?Me?

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@KaleQueen2016 @Who?Me? i dont file 1099, i file regular w2 as a full time employee but contracted through a 3rd party external to my company, it doesnt sound like i qualify, unless anyone knows something i dont?
no I think you're referring to a contract employee (like a government contractor), that's different. You need to be a 1099 independet contractor
 

Who?Me?

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Hi 1099 worker here! I got the loan and had it deposited into a personal account as I am an IC.
You did it wrong. You were supposed to write yourself a check. 1600/2
Take half of 1600 and pay yourself and then 4 weeks later pay yourself again.
Ic workers can use it on work related expenses and I've been told we can use it on other things outside of work but im not sure. So I'm keeping my for work related items.
I work as a contract teacher BTW.
you are correct. there are other things it can be used on, the SBA has a list of examples
 

KingwoodHeaux

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How are you applying for a PPP loan/grant without a business and without a business account? Maybe someone else can explain this to me because I am confused. I thought folks had to have proof of an established business before even applying.



Pretty sure anything over $10,000 is automatically investigated due to potential money laundering - it's standard. They are investigating because you tried to withdraw $16,000 in cash. While it's routine, I am still confused about how you received a PPP loan when you don't have a business.
You said pretty much everything I was about too. Op and her story sounds sketch to us and the bank and they're investigating. Any person with a basic level of banking knows that anything over 10,000 will be investigated.
 

Crown Royal

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I'm trying to do this loan for my dad and his business - he's been in business 25 years, can someone help me out or point me to where I can get help?

He's in another state so I'm trying to do all this over the phone.

If you don't want to discuss here please feel free to dm me.

TIA
 

Boss Leroux

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i never knew that, do you know if there is anything in there for full time contractors?
Please go ask all of your questions on Reddit. They will give you every answer and every link that you can’t find on your own. Also more than likely someone has already asked so you don’t have to do anything but read it.
ppl there will tell you from 1st hand experience. As you can tell by the replies that the OP is getting, LSA is not the place to ask this type of stuff as ppl insist on replying to threads about sh!t they know nothing about
 

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They only want to see if you paid yourself at 50%.
Independent contractors do not need business accounts only if you have an ein number
Independent contractors can use the PPP to pay themselves with the entire PPP not just half.Depending on your lender you may not even have to provide proof of anything just fill out a survey like application and its forgiven.

I was going to order and write myself out checks as a just in case to cover all bases though. Hopefully I can get everything sorted out tommorow...they cant just hijack my account.I do understand why they were alarmed though.I just dont understand why they didnt freeze my account weeks ago when I got the money...it only became an issue when I tried to withdraw it.I just spent 4k on Louis Vuitton luggage yesterday and they didnt try to freeze my account than.
 

Who?Me?

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I'm trying to do this loan for my dad and his business - he's been in business 25 years, can someone help me out or point me to where I can get help?

He's in another state so I'm trying to do all this over the phone.

If you don't want to discuss here please feel free to dm me.

TIA
go to Womply
Have his tax filing information. it's really a very simple process
 

clandestino

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Every font has a good point: Since the Patriot Act was passed, the banks report any cash deposits/withdrawals over 10k so that may have been what set off their alarms.

Also note: physical banks don't actually have your entire savings & checking amounts, most of the money they get in physical banks gets sent away in armored trucks at the end of each working day. How else would you be able to get money out from the same bank at other locations if you could only use the one bank you go to most often? Most physical branches don't have 16k lying around for people to take out at a time, the money in physical locations are for all people with accounts to be able to take out smaller amounts at a time.

Let us know how that phonecall goes, OP
 

ORNELLA

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When this whole PPP grant and loan business started I heard that Uber drivers were applying and collecting up to $50K.
 

Makeupmuva

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PPP loan issuers are not playing. A lot of people are accepting the loan and grant without fully understand the conditions. Yea you have to have a business bank account, you have to prove that it is going to your business and provide them with a bunch of tax, employment info, you have to show the payouts. A bunch of stuff.
 

Who?Me?

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One more bit of information: If you are in doubt, you can always call the SBA.

Surprisingly, the SBA officers have been extremely helpful with any questions you may have. I've had to call twice and each time didn't feel rushed or like I was bothering someone with my questions.
 

Who?Me?

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PPP loan issuers are not playing. A lot of people are accepting the loan and grant without fully understand the conditions. Yea you have to have a business bank account, you have to prove that it is going to your business and provide them with a bunch of tax, employment info, you have to show the payouts. A bunch of stuff.
the business account requirement is only for those with employees. If you are an independent contractor with no employees, it's not a requirement to have a business bank account.
 

Makeupmuva

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Please go to the Reddit thread for SBA/EDIL here: r/EIDL. There's been posters who have had the same thing happen to them. It's a legit forum where applicants/self-employed/business owners discuss their experiences and try to help each other out in non-scammy ways. There's been a lot of gig/Uber posters sharing info too. Just type "uber" or "self-employed" in the search bar to get those posts.


Most of LSA won't & can't help you out for this but talk out their ass on something that know little about and judge. It will be a waste of time going back and forth. Go to the Reddit forum ASAP!
why do you assume the people of reddit are more qualified than the people of LSA ?
 

SeventeenDayze

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Independent contractors dont HAVE to have a business account...you do if you have a LLC but gig workers do not.They see all my deposits they know ive been doing gig work for several years they never called or emailed me and told me I needed a business account...this is all new to me.I wanted to withdraw my money because im moving soon and I wanted to keep my money in a safe .Im on section 8 and you cant have over a certain amount in your account before they count it towards your rent.I haven't even gotten my income tax refund yet.I dont want 30k+ in my account fµck!ng up my housing.

I was going to use it as a downpayment on a house.Im still trying to decide if im going to get a mortgage or save for two more years and buy a modest house cash or have a very very small mortgage.
Do drivers make enough where they can afford to buy a house in cash? Are you driving all day? Or maybe you live somewhere where houses are cheaper?
 

April Diamond

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I also suggest to others are self-employed/gig workers/small business owners who already received the EIDL/PPP or those who think they qualify, check out the youtube videos from reputable CPAs/Accountants like the guy below. He shares great information on how to use the funds, how to apply, etc.

The way SBA is cracking down on fraud and being so inconsistent it's best that you get information & guidance from a licensed tax accountant and/or a lawyer like him. I would watch a few of his videos or search for other reputable professionals by typing "sba ppp help" or whatever. Make sure whoever else you find are legitimate accountants or tax lawyers with a legit practice. There's a few of them on Youtube now helping people navigate & you don't have to go through the trouble to find one locally and spend unnecessary money when you can get it for free. LSA can be a great resource for a lot of things, but with something like this, you need guidance from the right professionals.

 

Makeupmuva

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the business account requirement is only for those with employees. If you are an independent contractor with no employees, it's not a requirement to have a business bank account.
Some banks require you to have a business account. People have spoken out about banks like BoA, Citizens Bank and Chase requiring a business account, even if you are an independent contractor.
 

medcruise

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I'm trying to do this loan for my dad and his business - he's been in business 25 years, can someone help me out or point me to where I can get help?

He's in another state so I'm trying to do all this over the phone.

If you don't want to discuss here please feel free to dm me.

TIA
Like someone else has already said, go to Womply that will really help you complete the steps for your dad's business.
 

Tammyblue

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OP doesnt qualify for the EIDL that she got $9000 for.

This country is so fµcked up, you have someone like OP with bank account over $20k, scamming the system and collecting section 8, most likely food stamps too. And you have people, with real need that can’t qualify especially because they are honest and won’t scam.
 

veronicaluv

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no 1099 worker should be getting this loan

edit: if you don't have an incorporated business and business account.

Driving uber doesn't count.


Gig Workers and Independent Contractors (1099) is exactly whom the money was set aside for. And you don't need an incorporated business. You can be a sole proprietor or an LLC.

OP, don't co-mingle PPP funds. They don't belong in your personal account because you are supposed to be using it for business purposes. Capital One is known as Crap One for a reason. Also what PPP grant? Are you speaking of a EIDL grant? If so, PPP money and EIDL Advance/Loans don't really belong in the same account either. Also, if you collected unemployment and then tried for a PPP, you're double-dipping and they'll freeze you for that.

PPP is for payroll
EIDL (Loan) is for business expenses
EIDL Advance (Grant) is for business expenses.

You can't use any of those funds to reimburse yourself either. And PPP and unemployment is a BIG no go. If you did this, return the PPP.
 

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