SBA PPP and EIDL Small Business Loans (some money is forgivable)

[shiframeir]

You can't assign more than 40 hours to an employee when calculating FTE.
I'm pretty certain though that any overtime paid during those 8 weeks will be forgiven as it falls under "paid and incurred".

we're afraid of the opposite, getting dinged for comparison to high overtime during january compared to now.

[cgr]

we're afraid of the opposite, getting dinged for comparison to high overtime during january compared to now.

You can compare FTE's and wages on June 30, 2020 to Feb 15, 2020, instead of using any of the other periods mentioned.
You can compare FTE's on the last day of your Covered Period to January 1, 2020. Might not have had OT on 1/1 due to New Years.

[TBD]

https://www.sba.gov/sites/default/files/2020-05/EIDL%20COVID-19%20Loan%205.18.20.pdf

[AsherO]

https://www.sba.gov/sites/default/files/2020-05/EIDL%20COVID-19%20Loan%205.18.20.pdf

Nice. And how much in grants to the 4 million applicants? Meaning, how much money is left?

Also, can you get an EIDL loan after PPP? How do EIDL loans work, do they suddenly email you with loan docs? Or do they send out a request for documents/business records?

[cgr]

Just realized something about PPP.

Many individuals with very small 1099/Schedule C held back from going for PPP because UI is more beneficial.

In NY (and this is even more lucrative in NJ) you can file for partial UI if you earn $504 or less, and work 3 days or less.
That means that someone with a 26k Schedule C can apply for a PPP of 5.4k, get 4k forgiven (comes out to $500/weekly) as 8/52 owner compensation, and use about 1.3k for other expenses. (Looks like all sole props will need to return that remaining 1%), and then would still be eligible for partial UI. Assuming he gets the minimum benefit rate on PUA, this is what it would look like for those 8 weeks:

PPP- $500/weekly
UI- between $136.50 and $45.50 depending on how many days you work for your Schedule C business (NY min PUA is $182- his rate gets cut by 25% for each day he works)
FPUC- $600
Total Weekly- between $1,145.50 and $1,236.50

You'd have to be willing to go through the process of applying for PPP and the forgiveness after, all in order to get that extra 5.3k... but hey, this is DansDeals we're talking about.

[AsherO]

Just realized something about PPP.

Many individuals with very small 1099/Schedule C held back from going for PPP because UI is more beneficial.

In NY (and this is even more lucrative in NJ) you can file for partial UI if you earn $504 or less, and work 3 days or less.
That means that someone with a 26k Schedule C can apply for a PPP of 5.4k, get 4k forgiven (comes out to $500/weekly) as 8/52 owner compensation, and use about 1.3k for other expenses. (Looks like all sole props will need to return that remaining 1%), and then would still be eligible for partial UI. Assuming he gets the minimum benefit rate on PUA, this is what it would look like for those 8 weeks:

PPP- $500/weekly
UI- between $136.50 and $45.50 depending on how many days you work for your Schedule C business (NY min PUA is $182- his rate gets cut by 25% for each day he works)
FPUC- $600
Total Weekly- between $1,145.50 and $1,236.50

You'd have to be willing to go through the process of applying for PPP and the forgiveness after, all in order to get that extra 5.3k... but hey, this is DansDeals we're talking about.

You picked the sweet spot of max 1099 to qualify for both. As the 1099 shrinks, the PPP becomes less valuable and thus potentially not worth the hassle.

[cgr]

You picked the sweet spot of max 1099 to qualify for both. As the 1099 shrinks, the PPP becomes less valuable and thus potentially not worth the hassle.

Well of course. I'm not going to spend 5 minutes writing up that awesome idea without pushing it to the max😊

Which makes me realize I should have used NJ as an example for maximum effect...

[AsherO]

Well of course. I'm not going to spend 5 minutes writing up that awesome idea without pushing it to the max😊

Which makes me realize I should have used NJ as an example for maximum effect...

The bottom line is, that with PPP being 5/24 of the 1099, those with (really) small 1099s don’t get much from PPP in any case, nothing to do with UI.

But I do see you’re talking about people who’s reason not to apply for PPP was because UI is more lucrative, so we aren’t talking about the same people.

[TBD]

If FPUC is going to expire on July 31 as currently scheduled than you can apply for PPP and dont sign the loan docs middle/end of July (Or apply by Dime where it will takes you a month to receive the loan docs), continue claiming UI till July 31, from Aug you can write yourself checks for PPP

[TBD]

Another opinion but dont know if it holds water we can debate it over here.
If you are a self employed RE agent but now you are fully unemployed. you apply for PPP but you are still unemployed, you are receiving money from the government but you are unemployed, Why can't you file for UI? PPP is maybe not considered employment income

[TBD]

Received today final loan funding docs from Dime PPP loan. Got SBA approval on April 28

[cgr]

Another opinion but dont know if it holds water we can debate it over here.
If you are a self employed RE agent but now you are fully unemployed. you apply for PPP but you are still unemployed, you are receiving money from the government but you are unemployed, Why can't you file for UI? PPP is maybe not considered employment income

PPP is to cover payroll or owner compensation which means you're employed.
There are two definitions to employed: working or earning. Either one (depending on the source but good enough as a general rule) means you are no longer unemployed.
In fact, the PPP allows you to rehire employees for pay with no work to make use of your funds even if there's a shutdown order in place and your employees cannot work. There's also a clear stipulation that you cannot be (fully) unemployed and on PPP at the same time.

[TBD]

There's also a clear stipulation that you cannot be (fully) unemployed and on PPP at the same time.

SOURCE?

[cgr]

If FPUC is going to expire on July 31 as currently scheduled than you can apply for PPP and dont sign the loan docs middle/end of July (Or apply by Dime where it will takes you a month to receive the loan docs), continue claiming UI till July 31, from Aug you can write yourself checks for PPP

The program is only available til June 30.
Still an idea though (unless a new stimulus gets passed which adds $600 for another few months...)

[TBD]

PPP is to cover payroll or owner compensation which means you're employed.
There are two definitions to employed: working or earning. Either one (depending on the source but good enough as a general rule) means you are no longer unemployed.
In fact, the PPP allows you to rehire employees for pay with no work to make use of your funds even if there's a shutdown order in place and your employees cannot work. There's also a clear stipulation that you cannot be (fully) unemployed and on PPP at the same time.

Maybe yes maybe no. Earning from other sources (investment etc) isnt considered employment , who says PPP is?
And who says PPP for SE is cutting 8 weekly checks, maybe I can write myself 1 big check,  only 1 week will be considered employed

[TBD]

The program is only available til June 30.
Still an idea though (unless a new stimulus gets passed which adds $600 for another few months...)

Till June 30 you need to apply but the funding could occur end of July

[TBD]

PPP is to cover payroll or owner compensation which means you're employed.
There are two definitions to employed: working or earning. Either one (depending on the source but good enough as a general rule) means you are no longer unemployed.
In fact, the PPP allows you to rehire employees for pay with no work to make use of your funds even if there's a shutdown order in place and your employees cannot work. There's also a clear stipulation that you cannot be (fully) unemployed and on PPP at the same time.

If I'm a W-2 employee, my employer received PPP, the first week he writes me a check for $15,325, Can I go next week file for UI?

[cgr]

SOURCE?

Receiving wages disqualifies you from full UI.
If you're on PPP you're receiving wages.

Good enough?

[cgr]

Maybe yes maybe no. Earning from other sources (investment etc) isnt considered employment , who says PPP is?
And who says PPP for SE is cutting 8 weekly checks, maybe I can write myself 1 big check,  only 1 week will be considered employed

PPP is based on your 2019 wages/self employment income, excluding investment income (you can't get PPP for that). The PPP will be recorded against those payroll/expenses in your Covered Period. This is your company paying you, same as always, but the gov is giving you a boost.

In most states it's how much you earned per week, not how much you were paid per week. If PPP covers 8 weeks, you're earning it over 8 weeks.

[cgr]

If I'm a W-2 employee, my employer received PPP, the first week he writes me a check for $15,325, Can I go next week file for UI?

In most states it's how much you earned per week, not how much you were paid per week. If PPP covers 8 weeks, you're earning it over 8 weeks.

If he writes that check for one weeks earnings he might get into trouble for unethically raising your wage with government funds. I'm sure they'll let a few dollar increase pass, but unless you always earn that much in a week, I advise him not to try it🙃