April 16, 2020 UPDATE: Unemployment for Self-employed, SBA Loan, and PPP Calculations
Unemployment Benefits for Self-Employed
If you are self-employed and have applied through the EDD for Unemployment Benefits, you may have received a response from the EDD stating zero benefits. We now know why. The program was not implemented and will not be taking applications until April 28, 2020.
The At-a-Glance info for Pandemic Unemployment Assistance:
1. Amount will equal proof of earnings no less than $167 plus $600 for weeks March 29, 2020 through July 25, 2020
2. Payments can be retroactive starting from February 2, 2020
3. Up to 39 weeks of benefits
You can find more information on who is covered, how much coverage can be claimed, and how long you can receive coverage HERE.
SBA Economic Injury Disaster Loan
Please be aware that the EIDL loan portal is paused due to a lapse in appropriations. Businesses that have already applied and have an application number which begins with ‘3’ are in the queue, waiting for SBA to process their application. However the portal is not available to new applicants. The Fresno SBA office is encouraging people to continue to check back on the webpage, so when it opens back up, they can apply.
Information supplied by Dawn Golik, SBA Deputy Director Fresno Region
Paycheck Protection Program
I have received confirmation from local banks that funding PPP loans will pause due to Federal Funds being allocated, until Congress adds more local banks will not fund any new applications. Oak Valley Community Bank describes the process for them going forward as, “they [applications in the que] will just be ready for the next program, which should be out this week.” Essentially this gives Oak Valley Community Bank and other banks more time to approve more applications and hit the fund button when federal funds are allocated.
Reminder, a list of local banks and their participation in the PPP program is HERE
A local CPA has created a blog to assist businesses understand the calculations for the self-employed, below is an excerpt. We have included this for informational purposes only, as we have received numerous questions on calculating PPP for self-employed individuals. For more information regarding the full blog please reach out via email.
Example – Kathy is a beautician who rents a chair in a local salon. Kathy reported Schedule C profit of $40,000 on her 2019 income tax return. Kathy doesn’t have any employees or other payroll costs as defined under the PPP loan program rules.
Kathy qualifies for a PPP loan of $8,333, which is calculated:
Kathy’s 2019 Schedule C profit reported on line 31 $40,000
Other payroll costs, health insurance, pension $ 0
Kathy’s 2019 payroll costs for PPP purposes $40,000
Months per year ÷ 12
Average monthly payroll costs $ 3,333
PPP loan multiplier x 2.5
PPP loan amount assuming otherwise qualified $8,333
I will share more information as I receive it.