Blue Acorn PPP List: What You Need to Know

The Paycheck Protection Program (PPP) has been a vital lifeline for many businesses during the COVID-19 pandemic. However, with the program's expanded scope and new guidelines, it can be challenging to understand how to navigate the process. In this article, we'll delve into the details of Blue Acorn PPP, LLC and Womply, Inc., two online startups that processed a significant number of PPP loans.

Expanded Investigation

The Select Subcommittee on the Coronavirus Crisis, chaired by James Clyburn (D-S.C.), has expanded its investigation into fraud in the Paycheck Protection Program to include Blue Acorn PPP, LLC and Womply, Inc. These companies are among the leading processors of COVID-19-related financial assistance. The investigation aims to uncover any potential financial fraud or mismanagement within these organizations.

PPP Loan Forgiveness

One of the primary benefits of the PPP loan is forgiveness, which allows borrowers to use the funds for eligible expenses and have them forgiven. For self-employed individuals, this process can be particularly straightforward. According to the latest guidelines, self-employed people who applied for their loan using their Schedule C can file for automatic forgiveness.

Automatic Forgiveness

In light of recent PPP guidelines, self-employed individuals and independent contractors now get full loan forgiveness automatically. This means that anyone who meets these criteria can receive full forgiveness up to $20,833 without having to apply or submit additional documentation.

What's Covered by the Loan?

The Owner Compensation Replacement (OCR) are considered income for unemployment purposes, making it incompatible with unemployment benefits or Pandemic Unemployment Assistance (PUA). However, borrowers can use their PPP loan to cover various expenses, including owner compensation replacement.

Reporting Income

Until further guidance is published, borrowers are recommended to report the claimed OCR as income on their 2020 tax return. While the CARES Act indicates that forgiven PPP amounts are not taxed and can be treated as a tax-free grant, this may change in the future.

Is the PPP Loan Free Money?

Essentially, yes! With the updated guidance allowing 2.5 months' worth of net income as OCR, borrowers can use their entire PPP loan for personal purposes - essentially free money. This means that self-employed individuals can transfer their full loan amount to their personal checking account without any special conditions or restrictions.

Who is Eligible?

Usually, these are Sole Proprietors, Independent Contractors, and owners of Single Member LLC's who applied for their loan using their Schedule C. They are eligible for automatic PPP Loan forgiveness up to $20,833.

In conclusion, the Paycheck Protection Program has undergone significant changes since its inception. With expanded investigation into fraud and new guidelines for self-employed individuals, it's essential to stay informed about the latest developments. By understanding how to navigate the process and what expenses are covered by the loan, borrowers can make the most of this vital financial assistance during these challenging times.

Blue acorn ppp list