There’s a lot of news out there right now, and it can be overwhelming during these uncertain times. IMAGE Studios is sorting through the noise to help you understand what it means for you & your business.

More PPP funding expected: Apply to be first in line

The government is expected to pass a new stimulus package this week which includes an additional $310 billion for the Paycheck Protection Program (PPP), providing more sole proprietors, independent contractors, self-employed, and small businesses with the opportunity to receive the forgivable loan. With a high demand for PPP funds, it is likely that the additional funds will be distributed quickly. Many applications are already lined up to receive the next round of funding, so it is recommended that you apply as soon as possible to get your application in line. It’s highly recommended that you apply through your bank, as people with accounts get preferential treatment during this process.

What is the PPP?

PPP loans are part of the COVID-19 government stimulus program (CARES Act) and are made to help sole proprietors, independent contractors, self-employed, and small businesses cover payroll and other business expenses like rent and utilities. The original funds were quickly exhausted, and more are expected to be distributed soon. This includes payroll for yourself, even if you have 0 employees. When used for qualifying expenses, you may be eligible for a 100% forgiveness grant, meaning you wouldn’t need to pay it back if you meet their criteria (find more info here).

Am I eligible for the PPP if I don’t have any employees?

Yes, you can still apply for the PPP. Even if you’re a sole proprietor, independent contractor, or self-employed, and have no employees, you can apply. Your own net earnings count as qualifying payroll costs, which you can find on your 2019 Form 1040-C.

How do I prove my payroll costs?

Depending on your type of business, you can use your 2019 Form 940/941, 1040-C, K-1, tax returns or W-2 statements (if you issue them).

Step 1: Gather Your Info

Here’s our complete list of business info you’ll need when it’s time to file the PPP application. When you access the application below, you’ll be walked through how to submit it.

Payroll records: you will need payroll tax forms (i.e. Forms 940 and/or 941) from January 1, 2019, to the most current filing. Note: You will need to be able to identify any employees paid over $100K. Sole proprietor or independent contractor? Get your 2019 1040 Schedule C too.
Tax returns: for the last two years. If you haven’t been in business that long, all tax returns you have.
1099-Misc (if applicable): If you have filed form 1099-Misc and are counting contractor compensation as part of your average payroll, you will need to provide this form.
Copies of driver licenses: for business owners with ownership stakes of 20% or more
Voided check: from the account where the loan will be deposited.
6months of bank statements: from your business accounts for the most recent six months of business.
PPP Worksheet: Download and fill out the PPP worksheet here. Watch this video for a step-by-step on how to fill it out.

Step 2: File Now

Apply now directly with your bank. Don’t delay. Even though funds have run out for PPP, it’s expected more money will continue to open up so it’s important to get your application in now to secure your position in the queue. If you do not have a banking relationship that you prefer to use, we recommend Cross River Bank.

Our partner, GlossGenius, is working with SBA approved Cross River Bank and they are continuing to accept applications ahead of the anticipated funding (even if you’ve never banked with them before). While they can’t commit to providing loans until the government approves the additional funding, it’s best to apply now so you’re first in line. Watch this video if you want help walking through the application and this video that will show you how to fill out the spreadsheet that is part of the application.

Please note: As of April 20, Cross River is still reviewing and accepting PPP applications, however, the funds allocated by the government for the PPP have run out. If additional funding is authorized, it may be helpful to apply now and get in line.

APPLY NOW

Step 3: Help Others

There’s a lot going on, but thankfully there’s a lot of help. If you know other business owners struggling, please send this page to anyone you think should be applying for PPP.

Instagram offers a great social platform, particularly for hair stylists, to showcase their work to their followers. Here are a few tips on how to use Instagram

Follow, and be followed. Before you can start making an impression you’re going to need followers. Spend some time following as many people as you can (especially people who fit your demographic), and a lot of users typically “follow back” those who follow them. It’s the circle of reciprocity on Instagram. Be patient though, it takes a few months to build a solid network of followers, but once you do you will be glad you did.

Take it slow. Nothing is worse than following a stylist that decides to post 25 photos in 5 minutes. You may be excited and want the world to know, but keep it limited and share only your best photos. It enriches your followers experience and benefits you. If you’d like to combine photos, apps like Diptic and Fuzel can create a collage. You can export them straight to Instagram to make photos even more attractive by telling people a story.

Pump the stock brakes. No one wants to see that stock photo you took a screen shot of on your iPhone, pretending it’s your own. They’ll quickly unfollow you if you ever post photos that are stock images. Just don’t do it. Ever.

Choose your hashtags wisely. Please, please, PLEASE! Understand that hashtags are not bullet points to your photo or post, but are ways to search what’s trending online. Use hashtags as keywords to what your photo is about, and have 2-3 hashtags that you use as your own, and use them every time you post a photo. For more info on how hashtags works, see our blog post on it.

Involve your followers. Brands such as Red Bull and Audi have mastered creating communities on Instagram using hashtags and Instagram contests that get users to interact with their products and brand by connecting to their lifestyle and emotions. You could give away a gift card to clients who post photos of their new cut or color. Make sure your clients use one of your hashtags so you can track it, too.

Comment back. It’s important to interact with people in Instagram. It’s a network largely based on the emotions that a photo provides, and that emotions includes conversation (in the form of comments) made regarding your photos. Try to make communication a two way street and people will be excited not just to follow you, but to interact with you. Most importantly, look for comments that may show interest in booking an appointment with you. There is gold hidden in Instagram comments!

A lot of salon professionals who are new to Instagram (or social media in general) are a sometimes gun-shy when it comes to posting photos of their work. All I will say on that is this:

Take pride in how far you’ve come, have faith in how far you can go.

Don’t underestimate your abilities. Your clients love you for a reason.

Category: Technology

Beauty Industry Update Regarding PPP Loans