paycheck protection program "loans"

August 22, 2022, 08:20 AM

steve495

quote:
Originally posted by MikeinNC:
My big kid is self employed and couldn’t get anyhelp, for whatever reasons. ...

There was a short period of time between March 3, 2021, and March 31, 2022 (28 days) where your big kid could have applied. (That deadline may have been extended.) The formula involved taking your 2019 or 2020 tax return's gross income, dividing by 12 and then multiplying that by 2.5. (Or something like that.) Max was a "loan" of about $21k that would be forgiven and tax-free.

As I noted in the previous post, this opened the floodgates as there were few hoops to go through. But you needed to know about it. I know from experience a lot of self-employed or 1099s with micro businesses who qualified had no clue about this.

Steve

Small Business Website Design & Maintenance - https://spidercreations.net | OpSpec Training - https://opspectraining.com | Grayguns - https://grayguns.com

Evil exists. You can not negotiate with, bribe or placate evil. You're not going to be able to have it sit down with Dr. Phil for an anger management session either.

August 22, 2022, 09:31 AM

Rick Lee

quote:
Originally posted by steve495:
quote:
Originally posted by Rick Lee:
I couldn't qualify for a PPP loan because I was only in second year as an independent contractor, had not yet incorporated and didn't have any employees. But I was forced to stay home and not work for a while, during which time I got an EIDL loan. Any idea if they're going to eventually be forgiven?

Do you have an accountant? I realize it's an extra expense, but I have a good CPA who helps me and provides advice during the year. He was able to provide good information concerning PPP loan availability including forgiveness information. I'm not familiar with the EIDL loans but at first glance, they do not seem forgivable.

There were changes made to the PPP program a month or two after Biden got into office, and it really opened the flood gates concerning the availability of PPP loans including folks like yourself (I think).

The government - as usual - kept changing the rules. At first, you may have not qualified for anything, then they offered you the non-forgivable EIDL, then they may have made you eligible for PPP forgivable loans without telling you. It's a clusterfuck, but having a good accountant may still help you a bit.

Yes, I have a CPA and he said the EIDL loan was not and very likely would not become forgivable. Worse, if I were to qualify for a PPP loan, I would not be able to use those funds to repay the EIDL loan. Though I'm not sure how they'd be able to police that.