PPP loan fund clarification information and interpretations are changing rapidly. We are waiting for the *final* rules of the PPP loan. The following is from 4/9/20 communication from: Anne Lancaster, Business Advisor, Maine Small Business Development Centers (Maine SBDC)
I am self-employed, can I get unemployment? Per the CARES Act passed on 3/27/20, self-employed individuals are eligible for unemployment. As of today, you still cannot apply for unemployment if you are self-employed. We do not know anything further at this time about how funds will be calculated, when you will receive funds, etc. We expect more information to come very soon.
I’m trying to manage my cash flow carefully. Should I make payments on my credit card?Please see attached summary of what leeway credit card companies are able to offer their customers right now.Don’t forget about the long-term impact on your credit! Try to make at least the minimum payment if you have not worked out other arrangements. I can connect you with a (no-cost) credit counselor if you have concerns.
I still have not heard back about my EIDL loan application or received an advance, should I be concerned? The SBA admits to being behind on processing the loans and advances due to extremely high volume. Don’t worry–if you applied on the application that mentioned the advance and received a confirmation number after you submitted, you are all set–just be patient. I know it is frustrating waiting and not knowing, but we do not have answers on quantities or timing right now. Please let me know when you receive funds or correspondence as it’s helpful to hear progress.
Please note, if you were one of the early SBA EIDL applicants, please go back to the site and if you haven’t reapplied with the newest process, you will want to as this will speed up your process. Any questions, email me and I’ll explain in more details. https://covid19relief.sba.gov/#/
Will my PPP be taxed as income? No, it will not–But, one thing to be aware of – expenses covered and forgiven under the PPP cannot count as expenses that may be written off on income taxes. So if your circumstances do not allow you to get 100% of your PPP forgiven, expenses paid by portions of the loan that are not forgiven may be written off.
Until next time…..