In the meantime, we recommend that you apply for benefits through IDES, include all your sources of work-related income, including 1099 work. You should receive benefits based on your W-2 work, as well as the additional $600 in weekly benefits provided by the CARES Act. You should then file an appeal with IDES within 30 days of the benefit determination, arguing that you’re entitled to additional benefits based on your 1099 work. Two of our fellow Chicago legal services organizations, CARPLS and Legal Aid Chicago, can assist you with the appeals process.

You may want to review it and talk with your lender about returning any excess funds. There is no prepayment penalty if you repay early. For PPP if you file as self employed with employees then there is a very https://kelleysbookkeeping.com/ specific calculation for your loan amount. If so it may have been before that guidance came out. At any rate you can read it in the Treasury guidance on how to calculate PPP amounts by business type.

Malone, sole proprietor

Malone stores his ice cream in freezers dedicated to his business in his apartment. Because the space was solely dedicated to his business, the IRS allows for a portion of his personal rent and electricity bill to be deducted for business purposes. He claimed those home office expenses in 2019, so he can claim the expenses over the PPP’s eight-week period as well. If you have employees, the decision between filing for PPP or laying off your employees so they can collect unemployment benefits becomes a little more complicated.

• The following FAQs are for informational purposes only and to assist borrowers who obtained PPP loans with their loan forgiveness applications.
• The self-employed application for PPP opened up later than the one for other types of businesses.
• Your small business financing search stops here.
• States that received large shares of PPP loans as a fraction of 2018 payrolls through April 2020 received smaller loans during the second phase after April.
• On the other hand, PPP had a measurable and significant positive impact on pandemic job losses, saving somewhere between 2 and 3 million job-years, albeit at a substantial cost.
• This unique situation motivated policymakers to institute a large-scale employment subsidy program, the Paycheck Protection Program , in the effort to save small businesses from going under.

Find out about new programs, upcoming events, and other ways to connect with us. Understand the various requirements for Fed-chartered financial institutions and discover the range of services available to them—from cash services and reserve balance data to the discount window. Explore the latest educational resources from the Cleveland Fed—from interactive articles and video explainers to games and virtual exhibits. The Cleveland Fed offers numerous resources to promote economic opportunity for residents across our region.

PPP Loans vs Unemployment Benefits: How to Choose

Unemployment payments are not considered earned income. Donald – were you in business as of February 15, 2020? If you were https://kelleysbookkeeping.com/ you can fill out your tax return and apply without it being filed, though you’ll want to complete it as soon as possible.