EIDL confusion
Applied in April and received $3,000 in early May (3 “employees”). No word since.
Today
Got an email link to setup my portal profile. I confirm it’s legit and follow the link. Apparently I’m being offered up to $81,000 at 3.75% for 30 years.
My accountant is not exactly sure how these are setup. I’m going to call during the week next week to understand more. My wife has some student loans at 6% that might be nice to backdoor refi.
Any guidance?
Filed amended return on 3/18 and it’s not even showing has having been “received”*
*could take up to 3 weeks
It’s a loan. Take it if you need it. That’s why it’s there.
From reading. Anything over 25k needs collateral and there are some other strings.
I have no freaking clue what happens end of July. If my clients in the Bay Area don’t start back up and using me by then it’s going to be a pretty shitty.
Wife working plus me on UE= holding steady.
Wife working plus me working regular- building the cushion back up.
Pretty much any other combo sucks. Wife loses her main client (unlikely) really sucks.
Jackass Mitch is going to take any UE extension down to the wire for leverage. Asshole.
After months of silence, I just got an email from the SBA for my next steps on the EIDL. I’m eligible for $5,200 at 30 years for 3.75%. $26 monthly payments. Uh… guess I just snap take this?
ETA. I filled it out and submitted it. Wish I had more income on that LLC last year. Trump economy sure hasn’t been kind to my industry over the last few years. Pre covid.
So I’ve decided to take a $24,900 EIDL loan at 3.75% for 30 years. It’s pretty cheap money to get and I don’t know how long my downturn is going to last.
$24,900 avoids the $25,000 point where you need collateral.
It says I’m improved and I docu-signed and now it say processing. Ez process. I just have to able to document $24,900 in business expenses in the first 3 years. No problem.
My next issue is it looks like I’m getting a small consulting gig that will earn a $600-$2,000 and I need to understand how it works with PA and Cares act unemployment. The PA equation seems understandable. But I can’t figure out how it impacts the Cares $600 payment.
The way I understand my PA, my benefit is 567/wk so therefore the first 30% or 170 is ok. After that the next 737 I earn (567+170) is dollar per dollar reduced from what I earn. Once I go above that I’m essentially getting no UI. Problem is I’m a consultant that charges on the order of 160/h. So it only takes a small project to wipe out UI for a week. Will have to spreadsheet it to optimize when I do the work
Can you structure the payments to be weekly for a few months? If not, at this point you should at least wait to invoice it until after July when CARES runs out if you aren’t sure how that’s impacted.
So let’s talk unemployment.
Based on what we are seeing numbers wise, things are about to get a lot worse in a lot of states. May even get to the point of reshutting down.
So, any chance the powers that be extend unemployment benefits further? Come end of August, the majority who applied for unemployment when this hit are going to be flattened. We havent seen mass numbers of people refusing to pay rent and bills yet, but once unemployment is cut off, what other choice will people have?
The rules say pretty clearly they must be posted for the dates earned not paid.
I would say not a high chance the government does the right thing. People are still having trouble getting their benefits now.
Like my wife! Her first payment was $500 from the feds (which we assume was the $600 less taxes - there’s no pay stub) and only about $100 from the state, when she should get something like $375 less taxes. She had to call and call and call and finally someone told her that her benefits had run out from when she was unemployed LAST year (yes, she’s had some bad luck the last 12 months). But that doesn’t make sense, since this is a new claim and thus the employer who just laid her off is on the hook for the UI benefits.
That payment hit our account on 5/28. Though she has filed each week, she has not received any more payments, not even the $600 one from the stimulus. She can’t get through to the labor department.
I assume people will contact their ins0 and work out a long term survival payment plan so they don’t end up homeless.
haha just kidding FIIK
Not 100 on this but I always thought there was a window and once you exhausted claims, you were out until it ended, be it 1 year, 2 years or whatever.
I don’t think it resets with change of employer, because even though the employer is paying the tax, the state is paying the benefit.
Still no stimulus $$ or EIDL anything. Good times.
My guess is that if it’s really bad they will try to extend the CARES Act, but it will only pass the Senate with a provision capping payouts at < ~75% of what each person was making pre-COVID, and with tons of corporate handouts too. To get to that point the Dems will probably pass it clean first, then go through a high stakes back and forth process.
The result can be the Keep Indolence Never Defining America CARES Act. KINDA CARES Act for short.
The right is sooooo triggered about paying people to stay home that honestly the GOP might act against their own economic interest just to avoid giving handouts. Wouldn’t be the first time we let people end up living in shanty towns in America.
I should have taken a video clip of this billionaire on CNBC yesterday just ranting and raving about paying people more money to stay home than they were making to work. The clown is a billionaire who still thinks it’s the flu, and he’s from NYC no less. He was gleefully tsk tsking them for day trading Hertz on Robinhood and laughing that they’d all go broke and the host was like “Of course nobody wants to see that happen!” And he was like “Uh, right, no, of course not, I just wanted to say this ends in tears for them.”
This guy, who still thinks it’s the flu and the economy is good to go from here, is one of the billionaire genius investors who are allegedly unbeatable and driving the free market toward perfect efficiency! The only bad outcome he sees is some moron on Robinhood blowing his $1,200 speculating on Hertz.
Right but what if you don’t technically earn it til then. As a contractor you can structure the payout schedule, so couldn’t specify that it’s earned in exchange for some deliverable that’s due on like 8/3? Or like in stages of $150 each week for each deliverable?
I’m not a lawyer or an accountant, nor am I suggesting you do anything illegal. But if you can create a loophole, go for it. You’re legitimately out of work, you legitimately are using the unemployment money to pay expenses, and you legitimately paid taxes helping to fund corporate bailouts while your extra assistance runs out 7/31. You may not get work in August and this extra money may be what keeps you afloat for an extra month.
Sounds reasonable to me.
Got my stuff signed and finalized for the EIDL. I’ll update when it hits my account.
I feel awful for people like my sister. She is stuck working at the least essential business possible (wedding venue) while I am making more on UE. This whole system is such a joke.
What kind of business do you have?
Self employed consultant. Me and the wife in different fields. We have one guy that bills through us. We take a cut and 1099 him.
My client base in biotech is in the Bay Area. They all shut down at the same time. Slowly starting to wake up. Wife has been busy.
EIDL in my account this morning.