I saw the thread talking about this. It started off with the EIDC in the first post. Than people started talking PPP. I did not see clarification between the two.
PPP is best if your payroll lost including paying yourself is greater than $10,000 when calculating 2 and a half months. So if you are self employed and averaged at least $4000 a month in 2019, the PPP is for you.You needed to claim it as a wage not a dividend. So almost everyone doing this will go PPP. If you had 4 employees and also pay yourself some with payroll, then it will be a big number. But the number is exact. You will add up what you paid everyone last year and divided it into a monthly average. That includes your 1099 contractors you paid as a individual. If you paid them as a company they don't count. This is an exact number and that is the exact amount you can ask for with this loan. Nothing else goes into the number. 2.5x average monthly payroll from 2019 counting each individual with a max amount of 100k for any one person is your number. When you get that amount you can then spend a small portion (Maybe 20%) on other things besides payroll. But the calculation is exact for what you get.
The EID is for many other things and may help you. If you have no payroll and take everything out as a dividend then this is it. You can do both. HOWEVER, the key here is that the 10k will not be forgiven if you got at least 10k from the PPP. Any amount forgiven in the PPP will not be forgiven with this loan. So you can get both. But you can not double dip on the forgiven part. If you do PPP the forgiven amount is capped at millions, but is an exact calculation. You can still go after this loan, but do not then expect it to be forgiven. It is a low interest rate, so it may have some value. Good 10 year terms.The PPP is applied for with banks. Your bank ideally. This EID loan is directly done on the SBA website. Not with any bank.
Others can maybe tweek this guideline, but you need to know they are different and what the key difference is. The PPP for almost everyone in business is the way to go. Make sure you have to ask for forgiveness in 3 months or it won't happen. And only what you pay out will be forgiven.
Feel free to add anything I missed and hope it helps some. If you are in business you should have all the documents ready for a bank. I am curious if they will run out of funds. It was a l lot of documents I put together.
PPP is best if your payroll lost including paying yourself is greater than $10,000 when calculating 2 and a half months. So if you are self employed and averaged at least $4000 a month in 2019, the PPP is for you.You needed to claim it as a wage not a dividend. So almost everyone doing this will go PPP. If you had 4 employees and also pay yourself some with payroll, then it will be a big number. But the number is exact. You will add up what you paid everyone last year and divided it into a monthly average. That includes your 1099 contractors you paid as a individual. If you paid them as a company they don't count. This is an exact number and that is the exact amount you can ask for with this loan. Nothing else goes into the number. 2.5x average monthly payroll from 2019 counting each individual with a max amount of 100k for any one person is your number. When you get that amount you can then spend a small portion (Maybe 20%) on other things besides payroll. But the calculation is exact for what you get.
The EID is for many other things and may help you. If you have no payroll and take everything out as a dividend then this is it. You can do both. HOWEVER, the key here is that the 10k will not be forgiven if you got at least 10k from the PPP. Any amount forgiven in the PPP will not be forgiven with this loan. So you can get both. But you can not double dip on the forgiven part. If you do PPP the forgiven amount is capped at millions, but is an exact calculation. You can still go after this loan, but do not then expect it to be forgiven. It is a low interest rate, so it may have some value. Good 10 year terms.The PPP is applied for with banks. Your bank ideally. This EID loan is directly done on the SBA website. Not with any bank.
Others can maybe tweek this guideline, but you need to know they are different and what the key difference is. The PPP for almost everyone in business is the way to go. Make sure you have to ask for forgiveness in 3 months or it won't happen. And only what you pay out will be forgiven.
Feel free to add anything I missed and hope it helps some. If you are in business you should have all the documents ready for a bank. I am curious if they will run out of funds. It was a l lot of documents I put together.
