SBA & Paycheck Protection Program - ECN Electrical Forums

Businesses affected by COVID-19 should check out the Help that's available at SBA.gov

Paycheck Protection Program is a SBA backed loan which can be used to offset up to 8 weeks of payroll, rent, & utilities, that in some cases may not have to be paid back.

Also, larger financing may be available through COVID-19 Economic Injury Loan at a long term & low rate.

I understand they will start accepting applications this Friday. (04/03/2020)

https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

Good Luck,

more info from SBA.gov regarding Economic Injury Disaster Loans and Loan Advance, which can be applied for now:

Quote

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.

The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

Apply online through your Business Bank for the Paycheck Protection Program with Applications starting 04/03/2020

Hey Bill,
Although this doesn't apply to me (or could it?

),
Thanks for posting this, a lot of people need some sort of help, considering they can't go to work due to a lock-down situation.

Everyone, should just stay at home and minimise the chances of this pandemic getting worse, keep within your "bubble".

This seems to only be available, or at least forgivable, if you have employees. My niece runs an sole proprietorship with her, her hubby and one of the kids. Nobody gets a W2 so there is no salary to protect and then it just becomes a loan. If you can demonstrate you kept paying employees they might forgive all or part of the loan, making it a handout. We had a banker on the news tonight saying the rules at this point are so nebulous that he has no intent on loaning out anything until they actually put rules in place he can count on.

Greg,

As long as they're reporting the Income I think they should be eligible for something.

I might be wrong, by my understanding is if they can't work at all they may be able to get something under the new Unemployment rules. And if they can work, but have diminished income they may be able to get a Grant under the Economic Injury Loan program.

Originally Posted by Trumpy

Hey Bill,
Although this doesn't apply to me (or could it?

),

Mike, maybe you can tell them you work here...

These things are all just loans and they are only forgivable if you can show 75% of the money went to an employee.

Originally Posted by gfretwell

These things are all just loans and they are only forgivable if you can show 75% of the money went to an employee.

Are you assuming they wouldn't consider the Sole Proprietor an Employee? If so, I guess we'll have to see how that works...

But, according to the Fact Sheet below the Govt. considers income from Self-employment as payroll costs.

https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf

Not "official", but a quick Google found this:

Quote

The biggest perk of this program is that it can be almost entirely forgiven. You do not have to pay tax on any portion of the loan being forgiven (meaning the loan becomes tax-free grant). If you keep your payroll expenses consistent to what they were before the COVID-19 pandemic for a further eight weeks, including the salary paid and the number of employees paid, you could be eligible to have those expenses forgiven from your loan amount, as well as certain other expenses such as rent and utilities.

The good news is that if you are self-employed (and you are your only employee), this should be easy to achieve!

(from: https://bench.co/blog/operations/paycheck-protection-program-self-employed/)

P.S. - Does anyone have any experience, further or definitive info on these programs?

Well I do have a staff member, he is more "rodent control" rather than actual on-site tech.

The problem is she never paid herself or anyone else a salary.

Originally Posted by gfretwell

The problem is she never paid herself or anyone else a salary.

Seems that if she filed a Schedule C it counts as Salary.

Originally Posted by Trumpy

Well I do have a staff member, he is more "rodent control" rather than actual on-site tech.

Yeah, I've got one of those too. It barks at everything including Bugs it seems.

I think the IRS looks at W2s.

Here in NJ the State Unemployment Dept is overwhelmed with claims, as we went from very low counts to WOW.

There is something that now indicates if you are a "Gig" worker, you can be eligible for a UI check. Seems like that includes the self employed (Uber/Lyft) and those that work like 1099 jobs.

So far, I'm not one of those that have to apply for UI yet. We are still working & I say that is luck.

With the 'extra' $600 a week, on top of the regular UI amounts, some folks are making out quite well.

Now the 'loan/grant' thing is another story. I have heard a lot of conflicting stories, for the guys with small businesses.

Hopefully, it gets better real quick.

Originally Posted by HotLine1

Now the 'loan/grant' thing is another story. I have heard a lot of conflicting stories, for the guys with small businesses.

Hopefully, it gets better real quick.

Ditto to that!!

If you can get one worst case is you have to pay back a loan at 1%

The UI thging may backfire if they clear people to go back to work because they will try to milk the UI as long as they can. Here in Florida the $600 a week plus the regular $275 comes to an annualized wage of $45,500 a year and that is way above what a lot of people make here a year. You probably keep your journeymen but you have a hard time finding labor.

I agree the extra $600 on top of UI might've been a mistake.

It irks me that I've been paying Unemployment Insurance for 35 years or so but could never personally collect.

Originally Posted by Bill Addiss

I agree the extra $600 on top of UI might've been a mistake.

It irks me that I've been paying Unemployment Insurance for 35 years or so but could never personally collect.

Bill,
Is that insurance for your employees?
Insurance companies are really "funny" about paying out anything, they are solely there to make money not friends, although they will tell you otherwise in thier adverts.
Would you believe, that there are still people in Christchurch here, that are STILL waiting and arguing with insurance companies about their homes that were damaged in the 2012 earthquake?

Crazy.......

Mike,

Unemployment benefits are a form of insurance: Employers pay into the program, and employees who lose their jobs through no fault of their own can collect benefits temporarily, until they find new work.

That said, if an Employee quits, or is fired for cause (which is defined by the State) they are not eligible to collect.

Yes, the UI issue with the 'Bonus' may be deter some from going back to a job with a paycheck. Max here I thing is $650 range a week, and add the $600 so $1250+/- would not be bad for not working.

Bill, I'm in the same boat. Only collected once way back in 1980, but have been kicking into the pot for a long time.

Originally Posted by HotLine1

Bill, I'm in the same boat. Only collected once way back in 1980, but have been kicking into the pot for a long time.

Wouldn't it be nice if they gave you that money back if you close up the Business with no one having filed?

Bill:

24 years of my contracting business with NO employee ever collecting UI, that would be a bonus IRA/401 whatever for me, but alas it's long gone down the black hole.

Nobody here ever filed either nor did any of my wife's employees when we had the business but I suppose it is good for those who need it.

I had an interesting question. If you were laid off and the PPP allows them to hire you back. If you say no, can you still get UI? Do they check with the employer?