Asset Enhancement Solutions Debunks the Top 12 PPP Loan Misconceptions

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Many Businesses Are Eligible for a PPP Loan But Don’t Know It.

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Business owners, CEOs, not-for-profit leaders, freelancers and individuals who are 1099 workers need to ignore misinformation and immediately apply for PPP loans

Over the past few months, Asset Enhancement Solutions, LLC (“AES”), led by Neil Seiden, helped more than 500 clients obtain $75 million of Paycheck Protection Program (“PPP”) funds. Yet a wide range of companies and individuals from across the United States still do not realize they are eligible, often due to bad advice or misinformation.

“Business owners, CEOs and not-for-profit leaders, in addition to freelancers and individuals who are 1099 workers need to ignore misinformation and immediately apply for PPP loans before the program ends on August 8th. Almost all could receive these critical funds, but shockingly many don’t even know that they qualify,” said Neil Seiden, President of Asset Enhancement Solutions.

The AES team of lending professionals and CPAs has identified the 12 most significant misconceptions about eligibility for PPP loans:

1. The Paycheck Protection Program (“PPP”) ended. False. The Program has been extended through August 8th. Some say it could go longer, but to be safe, apply now.

2. There is no money available left in the Program. Not accurate. As of July 24, there is approximately $130 billion still available.

3. It costs too much to apply. Not true. It should cost individuals, businesses and not-for-profits nothing to apply. Lenders get their fees paid by the SBA.

4. A business or individual needs payroll to qualify. False. Businesses do not need payroll to qualify. In addition, many independent contractors with 1099 income or single-member LLCs also qualify.

5. A company or business needs to have filed its 2019 tax return. Not true. Even though the July 15th tax deadline has passed, people and businesses on extension can still apply. All that is needed is a 2019 Schedule C, and even a stand-alone, unfiled form is acceptable.

6. A company that lost money does not qualify. Incorrect. A sole proprietor (Schedule C) needs to have at least $2,400 profit in 2019 to qualify for the PPP. Corporations that had employees and payroll yet lost money can still be eligible for a PPP loan.

7. A company must have fewer than 500 employees to qualify. Not accurate. The SBA has focused on the 500-employee number as the maximum allowable for a company to likely qualify for a PPP loan. However, under the SBA’s alternative size standard test, some larger-staffed organizations may still qualify. A company with less than $15 million in net worth and average net income less than $5 million over the last two years may qualify.

8. A business needs to be on the verge of bankruptcy to qualify. False. Companies need to certify that the PPP loan is needed for ongoing operations, which is different from facing imminent disaster.

9. Owning two distinct businesses means only one loan. Not accurate. Business owners can get more than one PPP loan when they operate businesses as separate entities. If these entities are independent, each could potentially qualify and receive a separate PPP loan.

10. Businesses bought after February 15, 2020 cannot get a PPP loan. Not accurate. if a business was operating on February 15, 2020 and meets the other eligibility criteria, it can apply for a PPP loan regardless of the change in ownership.

11. Seasonal businesses use the same time period as non-seasonal businesses to determine payroll costs and employee numbers. Not true. Borrowers can calculate their aggregate payroll costs in different ways.

12. Rejected applicants can never qualify for a PPP loan. Incorrect. Many PPP applicants were turned down by lenders for several reasons. AES and others have helped businesses obtain loans after they were turned down. It is important to work with a team that will take the time to understand the situation and find ways to prove eligibility.

Asset Enhancement Solutions has a team of experts who work directly with clients to ensure that PPP applications are completed properly from start to finish. Led by Neil Seiden, Asset Enhancement Solutions is a financial advisory firm based in Uniondale, N.Y. that specializes in non-traditional financing for businesses on a nationwide basis. For additional information about PPP application support services visit, call (516) 767-0100 or email

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Bill Corbett
Corbett Public Relations
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Neil Seiden
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