THE CARE ACT - What you need to know?
Q1. Can you talk a little more about the emergency $10,000 grant under the EIDL?
A: In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories who apply for an Economic Injury Disaster Loan (“EIDL”) through the Small Business Administration are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The grant does not have to be repaid. You can request the grant when you fill out your EIDL application and you should receive it in a few days.* Generally, the amount of the grant is determined by the number of employees you have at $1,000 per employee with a maximum grant of $10,000. *Currently, the SBA is not taking new applications for EIDL grants or loans.
Q2. Can you walk us through how to file claims?
A. An unemployment claim must be filed in the state where you worked. Each state has adopted its own application process and you should check with your particular state for guidance. New York, for example, has recently streamlined its application process. Previously, independent contractors, sole proprietors and freelancers were required to apply for regular Unemployment Insurance and be rejected before applying for Pandemic Unemployment Assistance. With this new application, there is one form to fill out to get the correct benefits. All applicants are encouraged to apply online. For general information on filing an unemployment claim, you can also obtain information from the U.S. Department of Labor’s website. https://www.dol.gov/general/topic/unemployment-insurance
Q3. Unemployment benefits – does this only apply to full-time employees or can part-time employees apply for payment as well?
A. Expanded unemployment benefits under the CARES Act apply to both full-time and part-time employees. Contact your state’s unemployment insurance program for more information.
Q4. A realtor/LLC partner received a K1, not a 1099. Can he apply for PPP?
A: Pursuant to interim guidance published by the SBA, if you are a partner in a partnership, you may not submit a separate PPP loan application for yourself as a self-employed individual. Instead, the self-employment income of general active partners may be reported as a payroll cost, up to $100,000 annualized, on a PPP loan application filed by or on behalf of the partnership. The SBA is currently unable to accept new applications for the PPP based on available appropriations funding.