I Appreciate all the feedback from everyone. Because of it, I would like to provide some additional information/clarification.
The email yesterday discussed federal programs under the CARES Act. There may be state & local grants in your area. Check with your local chamber of commerce.
Unemployment - please have any employees that are temporarily furloughed to please put they were furloughed due to COVID-19. It should be on unemployment applications. You are not required to pay out vacation/sick before doing this. The intent is we are all back to work at some point.
I would like to provide additional clarification on the EIDL "grant". EIDL is still a loan, the $10,000 loan advance doesn't have to be repaid if used for operating costs.
BUT if you have any intentions of applying for PPP loan, this $10,000 you received reduces the amount forgiven under PPP. It gets reconciled out if you do both. You gain no benefit if you plan to do both loan programs. Sorry, SBA does a good job of regulating.
Update - the SBA EIDL applications have already been streamlined. I did one this morning and it took me 10 minutes. I am not going discourage clients to apply, since it is such any easy process. Only financial information provided are income and expenses (COGS on application), in total from 2/1/19-1/31/2020. If easier to provide 2019 income and expenses, I would do so, for most this should be close. They may later request additional information if you plan to borrow money, but the customer service rep I spoke with didn't know. Seems this is to get the $10K out there ASAP to hold folks over until the PPP is ready to go. If you want to file, please feel free if it makes you feel better. Who am I to tell you not to, when I just did, ��. This same application 48 hours ago would have taken me 2-3 hours.
Again, PPP applications with banks are not ready. When we know, you will. We are also awaiting guidance on what defines "payroll cost" which is what loan is based on. We will not be doing an estimated calculations given we don't know yet. We are also hoping that many of you who have us as your payroll preparer, we will be able to forward directly to your lending institutions.
As I read the bill over and over and over, it kept referring to this Administrator "person" who pays for all this. Can someone let them know, I can be adopted!!
