Questions about Stimulus/Cares/SBA

[Daycarefamily]

Some rumors i've read online that hope others can chime in on.
1. SBA eidl grant is $1k for each business + $1k per employee.
2. SBA eidl grant will take weeks to process even though congress stated 3 business days from application.
3. Banks aren't processing the PPP loans effectively because the 1% rate is too low, they don't make money they don't care.
4. Stimulus checks aren't going to be clawed back because they are a refundable credit for tax year 2020. No effect on refunds. (GOV always retains the right to change it's mind)
5. IRS reinstituted loss carrybacks for 2020 and 2021!!
6. If you are ineligible for state unemployment then the FED pays 1/2 the state max + $600 under the FED pandemic unemployment program, but that is processed at the state level anyway, very slowly for self-employed.
7. PPP money to pay for your children's wages that work at your business that are under 18 are eligible even though they are your dependents, but only if you do all the w/2 w/3 940 etc.
8. As a result of all this stimulus and lower tax receipts the Gov deficit will be astronomical. Expect to pay higher taxes in future years? Maybe clawbacks?

If anyone has had a different experience or heard something different please chime in. I applied for the eidl on 3/30 and have heard nothing. I applied for the PPP today but am not very hopeful. Who knows when state unemployment will catch up?

[TomCopeland]

Originally Posted by Daycarefamily

Some rumors i've read online that hope others can chime in on.
1. SBA eidl grant is $1k for each business + $1k per employee.
2. SBA eidl grant will take weeks to process even though congress stated 3 business days from application.
3. Banks aren't processing the PPP loans effectively because the 1% rate is too low, they don't make money they don't care.
4. Stimulus checks aren't going to be clawed back because they are a refundable credit for tax year 2020. No effect on refunds. (GOV always retains the right to change it's mind)
5. IRS reinstituted loss carrybacks for 2020 and 2021!!
6. If you are ineligible for state unemployment then the FED pays 1/2 the state max + $600 under the FED pandemic unemployment program, but that is processed at the state level anyway, very slowly for self-employed.
7. PPP money to pay for your children's wages that work at your business that are under 18 are eligible even though they are your dependents, but only if you do all the w/2 w/3 940 etc.
8. As a result of all this stimulus and lower tax receipts the Gov deficit will be astronomical. Expect to pay higher taxes in future years? Maybe clawbacks?

If anyone has had a different experience or heard something different please chime in. I applied for the eidl on 3/30 and have heard nothing. I applied for the PPP today but am not very hopeful. Who knows when state unemployment will catch up?

1) No. It's $10,000 total. The $1,000 per employee hasn't yet been officially announced.
2) True. They are overwhelmed.
3) True. See my article on this: http://tomcopelandblog.com/what-if-y...#comment-66340
4) There will be no impact on your 2020 tax return because of the stimulus checks.
5) Don't know. Doesn't apply to the vast majority of providers
6) Most states have yet to incorporate unemployment applications for the self employed. Everything is slowed down because of the massive number of applications
7)True
8) Maybe, we don't know

[Daycarefamily]

Thanks for the reply. We would never have made it in this business without your books and advice, online and especially with the tax review you offer! We do appreciate your hard work.

[Daycarefamily]

I just noticed you replied today, EASTER! Happy Easter to you and your family and thanks for going above and beyond!