When reached by phone, Hockridge refused to discuss the company. The ABC15 investigators called and messaged local founders of Blueacorn, including former ABC15 anchor Stephanie Hockridge Reis and her entrepreneur husband Nate Reis. Blueacorn disputes the UT report’s methodology. The UT team analyzed SBA data, flagging approximately 30 percent of PPP loans through Blueacorn lenders to be suspicious, using several indicators of fraud. While neither the subcommittee nor the company would confirm whether any documents or answers have been submitted to date, a Blueacorn spokesperson said the company is cooperating with the congressional inquiry.Ĭlybourn sent the letter to Blueacorn after University of Texas professors released a paper titled, “Did FinTech lenders facilitate PPP Fraud?” Clybourn gave Blueacorn until December 6 to submit answers and paperwork. Total compensation for the executive team.Blueacorn’s total revenue from PPP loans.How many employees were dedicated to fraud compliance and what was their budget. How many applications were escalated for human review as well as how many were rejected in this process.How the company’s automated systems detected fraud or money laundering.Subcommittee Chairman Jim Clybourn sent the November 22 letter to Blueacorn demanding documents and answers on several topics, including The figure was cited in the letter sent by the congressional subcommittee to the company last month, but Blueacorn officials would not confirm that estimate. PPP loans were designed to assist small businesses to remain open during the pandemic.īlueacorn sent the paperwork through one of two partners, Prestamos CDFI or Capital Plus Financial, which are lenders approved to work with the federal Small Business Administration.īlueacorn helped to process loans for approximately 820,000 small business owners, resulting in $12.65 billion in PPP loans, according to a company spokesperson this week.īy one estimate, Blueacorn received a billion dollars in fees for processing PPP loans. The Fin Tech company posted a YouTube video showing how people can complete an online questionnaire and how their app wizard would autofill the PPP loan application. “Most self-employed and 1099 contractors had no idea they could actually qualify for a 100 percent forgivable PPP loan,” one ad said. Now the House Select Subcommittee on the Coronavirus Crisis is asking company executives about how much they made and what they did to try to prevent the possible waste, fraud, and abuse of tax dollars.īlueacorn’s advertisements flooded social media earlier this year. After your PPP covered period, you’ll resume collecting unemployment benefits.SCOTTSDALE, AZ - A Valley company, which helped gig workers and mom-and-pops get the federal loans to stay in business during the pandemic, is now at the center of a Congressional probe into whether the loans were made to fraudulent or ineligible applicants.īlueacorn was founded in Scottsdale and helped process more than $12 billion in Paycheck Protection Program loans, according to the company. The Owner Compensation Replacement are going to be considered to be income for unemployment purposes, so it’s not very compatible with unemployment benefits or the PUA. How does PPP Loan work with PUA or unemployment benefits? Until further guidance is published, we recommend working under the idea that you simply will got to report the claimed OCR as income on your 2020 income tax return. While the CARES Act indicates that forgiven PPP amounts aren’t taxed and may be treated sort of a tax-free grant, this may change in the future. Is a PPP Loan for Self-Employed considered taxable income? With the updated guidance allowing 2.5 months’ worth of net income as OCR, meaning your entire PPP loan might be used for private purposes-essentially free money. Is a PPP Loan basically free money?Įssentially, Yes! For the purposes of the PPP Loan, you are considered the employee and your loan amount is used to pay yourself. When you complete the EZ Forgiveness application, you’ll enter the full loan amount on Line 1. There are no special conditions for self-employed people to follow. you’ll simply transfer the full loan amount to your personal checking account . How much am i able to claim?Īssuming your PPP loan didn’t include other payroll expenses, this amount covers your entire PPP loan. The maximum amount is $20,833. Usually these are Sole Proprietors, Independent Contractors and owners of Single Member LLC’s. Who gets automatic PPP Loan forgivenessĪnyone who applied for their loan using their Schedule C can file for automatic forgiveness. Here are the main points on full loan forgiveness for self-employed people up to $20,833. In light of latest PPP guidelines, self-employed people and independent contractors now get the whole loan forgiven automatically.
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