The article you cite was penned before the final bill was passed. Are you sure all of those speculated provisions still apply?
Financial Relief Options For The Full-Time DJ Operators
- Thread starter Cap Capello
- Start date
At the top of the article It says published April 11th.... 2 days ago.. The bill passed way before then.
so just an update as to what I've seen floating around, and some of you who have applied may be able to verify. It seems that an email is being sent to applicants that is stating the 10k grant is no longer 10k... but rather due to demand... $1000 per employee (I assume you count as 1). I have 3 employees plus myself so I would technically qualify for 4, but I know many don't have any employees and therefore would get $1000 instead of the expected 10k. Now there's rumor that if the extra $250 billion for the SBA is approved by congress then maybe this will change... but something tells me that won't be the case.
As a result, if this is true, I'd be considering applying for the PPP. This would work to my benefit it seems like because I'd be able to apply for my full monthly income, plus what I pay my employees on AVG monthly. I'd be able to pay my employees.... of which 1 of 3 would only qualify for unemployment anyways and I'd get closer to what I normally make in a month. As long as I retain the same number of employees and pay them, then the entire amount is forgiven (I would use it to pay them and not be investing in anything else). I never realized with this that my full income counts towards what I can apply for.
The PPP also works for SIngle Ops and is something I do suggest as the only criteria is that you'd have to just keep yourself employed lol. There is a lot more intrusive paperwork involved with this, but based on the research I did from my bank, it seems pretty straightforward.
As a result, if this is true, I'd be considering applying for the PPP. This would work to my benefit it seems like because I'd be able to apply for my full monthly income, plus what I pay my employees on AVG monthly. I'd be able to pay my employees.... of which 1 of 3 would only qualify for unemployment anyways and I'd get closer to what I normally make in a month. As long as I retain the same number of employees and pay them, then the entire amount is forgiven (I would use it to pay them and not be investing in anything else). I never realized with this that my full income counts towards what I can apply for.
The PPP also works for SIngle Ops and is something I do suggest as the only criteria is that you'd have to just keep yourself employed lol. There is a lot more intrusive paperwork involved with this, but based on the research I did from my bank, it seems pretty straightforward.
"The Covid-19 pandemic has exposed aging, inflexible computer systems at the heart of the U.S. economy -- and a shortage of experts to fix the problem. This is slowing the government’s effort to get billions of dollars in stimulus checks to millions of newly unemployed citizens."
They never got the Memo about WinAmp!
They never got the Memo about WinAmp!
Below is what I received today, which quite disappointing:
It appears the 10,000 Advance (grant) will only give me up to a max of $1,000.
Also not sure what "The Advance is available as part of the full EIDL application" means.
There was only one thing to fill out. Am I suppose to go fill out a find/fill out a different version? Certainly not clear, to say the least.
Dear Applicant,
On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.
You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:
Paycheck Protection Program Full EIDL Loan
To locate a Paycheck Protection Program Lender, please visit: www.SBA.gov/PaycheckProtection.
Information on available resources may be found at www.sba.gov/coronavirus. For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the nearest SBA district office and/or SBA's resource partners.
It appears the 10,000 Advance (grant) will only give me up to a max of $1,000.
Also not sure what "The Advance is available as part of the full EIDL application" means.
There was only one thing to fill out. Am I suppose to go fill out a find/fill out a different version? Certainly not clear, to say the least.
Dear Applicant,
On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.
You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:
Paycheck Protection Program Full EIDL Loan
PURPOSE | Forgivable if used for payroll (minimum of 75% of the funds received) and the remaining for certain operating expenses (amount of any EIDL advance is not forgivable) | To meet financial obligations and operating expenses that could have been met had the disaster not occurred (amount of any EIDL advance is forgiven) |
TERMS | Up to $10 million 1% interest rate | Up to $2 million 3.75% for businesses 2.75% for non-profits |
FORGIVABLE | YES | NO – EIDL Loan YES – EIDL Advance |
MATURITY | 2 years | 30 years |
FIRST PAYMENT DUE | Deferred 6 months | Deferred 1 year |
To locate a Paycheck Protection Program Lender, please visit: www.SBA.gov/PaycheckProtection.
Information on available resources may be found at www.sba.gov/coronavirus. For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the nearest SBA district office and/or SBA's resource partners.
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there is one extra part that youll have to fill out which youll get an email for... theyre going to approve you for an additional 15k as a LOAN whic youll have to decide if u want at 3.75% for 30yrs.
Be sure you act responsibly because if your "employees" are later determined not to meet the standards for employment as defined by this act, or you use the funds improperly, you or the employee could incur a later liability. This would be especially damaging if it turns out if the employees report never having received any of these funds as continued payroll..
The program has a purpose, it is not simply a 'give-away" and in time there will be an accounting of how these funds were used.
The program has a purpose, it is not simply a 'give-away" and in time there will be an accounting of how these funds were used.
You won’t get approved for the PPP if you can’t provide quarterly payroll filings as well as other documents that shows you have actual employees on payroll. However, you, the owner, depending on how the business is structured counts as an employee under these guidelines as well... hence why single op, independent contractors, single member Llc’s, etc can apply.
Ya, but I don't want a loan that I will have to pay back. The $10,000 grant (EIDL) was denied, b/c it has to go to employees. That was not disclosed and quite misleading from everything that was published, of course it changes every day.
They probably realized how much that would have been if they granted $10,000 to everyone that applied. I possibly could get $1,000, but I guess, I will wait to hear...
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In the employee section you should have put 1 as you are an employee based on the design of the loan for sole proprietors.
The PPP you don't have to pay it back if you follow the rules of the loan... at least 75% towards payroll (in this case you) and 25% to other business needs. You can fund yourself 100% and be totally fine in a sense and be forgiven. It gets trickier for those that have employees like myself as I have certain payroll rules that I have to follow.
Pfft...What is a thousand dollars when you charge $3,000+ for a single event? Why is anyone considering a loan with interest to payback???
I thought you all were fiscally responsible high money earning DJs? What happened to your 6 month emergency funds? Surely, you knew to save up enough money to pay your own income for a full 6 months without any problems, especially with all the money you all have been earning as DJs.
I thought you all were fiscally responsible high money earning DJs? What happened to your 6 month emergency funds? Surely, you knew to save up enough money to pay your own income for a full 6 months without any problems, especially with all the money you all have been earning as DJs.
Dude you're realllyyyy missing the big picture. Do I have 6 months saved... yes... and more. The PPP is also a loan with only 1% interest... IF you can't get it forgiven, which I aim to have 100% of forgiven, so it's not really a loan at that point, but virtually a full salary replacement for the next 8 weeks. The EIDL is a grant... not a loan, but is limited to $1k per employee.Pfft...What is a thousand dollars when you charge $3,000+ for a single event? Why is anyone considering a loan with interest to payback???
I thought you all were fiscally responsible high money earning DJs? What happened to your 6 month emergency funds? Surely, you knew to save up enough money to pay your own income for a full 6 months without any problems, especially with all the money you all have been earning as DJs.
So why do I say you're missing the big picture. The PPP program allows full income for me to come in for the next 8 weeks (as well as my employees). Instead of living conservatively on only what I have saved over the next two weeks and dipping into emergency funds, it allows me to continue to live more comfortably... which includes taking advantage of possible investment opportunities, paying debts down faster, etc. My business expenses are very low monthly, which I'm fortunate for, so this will allow me to focus on personal obligations.
While I do have certain questions on the loan still before accepting the terms, should I get approved before money runs out, I can't understand why one would not take advantage of these incredible opportunities that are presented to them to utilize.
I did put one, so hopefully I get $1000 (not $10,000 though).
I cannot do PPP and Unemployment so there is that, and there is no way I won't owe a lot of that back as I am not even on payroll. I don't need a loan. I have money saved. I need money to make up for loss business.
For the PPP your pass through income counts as payroll. You take your net profit from your 2019 tax return, divide it by 12, and multiply it by 2.5. That will be the total of your loan amount. As long as this net profit is something that you pay payroll tax on (some people are able to defer this, which makes them not qualified for the ppp)
"The nature of the income that applies to the PPP must be subject to either the payroll tax or self-employment tax. Sole proprietors report their business income and expenses on Schedule C of their individual income tax return, Form 1040. The net earnings from Schedule C, which is found on line 31 of Schedule C, is subject to self-employment tax. Independent contractors can either report their income on Schedule C or as Other Income on Schedule 1, line 8. As long as the Other Income is subject to self-employment tax, it applies to the PPP calculation".
"In order to have your loan forgiven, you must spend 75% of the loan funds on payroll costs. The remaining 25% must be spent on mortgage, rent, and utilities. Additionally, these expenditures must take place within the 8 weeks following receipt of the loan proceeds."
The only part that I'm not certain of is that I've read on some documents that AT LEAST 75% of the loan must be payroll... meaning you can make it 100%... but other areas like the above document says that it has to be 75/25.
Anyways, don't take my word for it... ask your accountant. If you follow the guidelines, which for a sole proprietor is very easy... the entire loan is forgiven. You wouldn't need unemployment then as you're essentially replacing your entire salary for this period (which I prefer vs $600/week). Some may prefer $600/week as that's pretty close or better than what they make on avg through their dj business.
That's not quite what I heard regarding payroll, but freaking no one knows and it keeps changing. I was told that I cannot use my income as payroll and it still leaves the other 25% I will almost certainly owe back.
I hope you are right in that I can use 100% of it towards paying myself even though I don't technically have a payroll.
Anyhow, it's $450/39 weeks from the state (each state varies) and $600 from the federal gov (but only until the end of July).
I hope you are right in that I can use 100% of it towards paying myself even though I don't technically have a payroll.
Anyhow, it's $450/39 weeks from the state (each state varies) and $600 from the federal gov (but only until the end of July).
And just like that the money is just about gone! ...Fed SBA loan Stimulis to run out this Friday!
bangordailynews.com
...I think as time marches on more people will realize that this whole stimulus package from the already broke government that we have was pushed through with a bunch of BS. ....All this money is going to have to be paid back in one fashion or another. ...The borrower is ALWAYS a slave to the lender. In this case, the lender is the Federal government.
Unless you are in dire straights, and seriously need cash, I would not get involved in large loan from the government.
For all we know they are taking names of the people who will be screwed over a whole lot more when austerity measures are forced upon the people years down the road when they decide we have no choice but to start paying the debts down as a country.
Small-business loan fund dwindles as virus aid package sputters in Congress
One of the most celebrated pieces of the massive $2.3 trillion coronavirus relief package that’s just over 2 weeks old is on life support with no deal in sight to resuscitate it.
bangordailynews.com
...I think as time marches on more people will realize that this whole stimulus package from the already broke government that we have was pushed through with a bunch of BS. ....All this money is going to have to be paid back in one fashion or another. ...The borrower is ALWAYS a slave to the lender. In this case, the lender is the Federal government.
Unless you are in dire straights, and seriously need cash, I would not get involved in large loan from the government.
For all we know they are taking names of the people who will be screwed over a whole lot more when austerity measures are forced upon the people years down the road when they decide we have no choice but to start paying the debts down as a country.
For the record...The FED's balance sheet for this year is at 6.1 TRILLION dollars...and we are only in April. HOLY $HIT Bat Man!
Also, the STATES are telling the FED they NEED BAIL OUTS. Fed needs to bail out state governments in the near future. ...What do you think is going to come in the near future. Maybe hyper inflation? Nobody will have money for things like they did before this.
Property Taxes and Federal taxes WILL be going up because of this in the coming years. Tax increases in counties and states...We are going to be broke with all the taxes that will be coming down the pipeline. Not to mention the auto, cruise, and air lines industries is going to implode. It's gonna be bad. If you don't believe me, and I'm a doom and gloomer, then fine, but remember I told you all so!
Also, the STATES are telling the FED they NEED BAIL OUTS. Fed needs to bail out state governments in the near future. ...What do you think is going to come in the near future. Maybe hyper inflation? Nobody will have money for things like they did before this.
Property Taxes and Federal taxes WILL be going up because of this in the coming years. Tax increases in counties and states...We are going to be broke with all the taxes that will be coming down the pipeline. Not to mention the auto, cruise, and air lines industries is going to implode. It's gonna be bad. If you don't believe me, and I'm a doom and gloomer, then fine, but remember I told you all so!
Here is the language from the ppp application:
"With respect to “purpose of the loan,” payroll costs consist of compensation to employees (whose principal place of residence is the United States) in the form of salary, wages, commissions, or similar compensation; cash tips or the equivalent (based on employer records of past tips or, in the absence of such records, a reasonable, good-faith employer estimate of such tips); payment for vacation, parental, family, medical, or sick leave; allowance for separation or dismissal; payment for the provision of employee benefits consisting of group health care coverage, including insurance premiums, and retirement; payment of state and local taxes assessed on compensation of employees; and for an independent contractor or sole proprietor, wage, commissions, income, or net earnings from self-employment or similar compensation."
I'm not certain if you can use 100% towards payroll or if it has to be 75% payroll and 25% miscellaneous. However, I am certain that your income qualifies (in this case the businesses net profit that passes onto you).
Again, I do suggest speaking with your accountant to make sure that you'd be able to also provide the supporting documents for this. In NJ we don't have unemployment for non W-2 earners... so I wouldn't qualify for anything other than the $600/week. I'd rather get my full income with the PPP if I can meet the conditions.
Ricky, this isn't a bash but I find it interesting how You get excited about $30 back from your insurance lol but not excited about $1000 from an EIDL or 8 weeks full salary from the PPP (which if used right is forgiven). If your djs are employees you could get them full pay too! If their 1099 they can apply for the same things too as an independent contractor. That's looking out for family! At this point the money is virtually dry, but in case another 250Billion is approved, I don't see why one wouldn't apply for at least the EIDL.
I applied for that Grant. I see that as free money that I might as well take if they are handing it out. The others are not employees. All 1099, and the 1099s were the lowest ever for 2019. They made more money on their own, or getting booked by an Agent.
My Sister applied for the Unemployment the other day. She has no work until July as well at this point.