Updates: Stimulus for businesses and individuals

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Updates: Stimulus for businesses and individuals

There has been a lot of changes and updates to all of the different stimulus opportunities in the past few days. Many of the past assumptions in these previous newsletters have finally been confirmed by further SBA and US Treasury guidance. Also, there are some additions and updated guidance.

This newsletter is to build on the past updates that have been coming out from our team at Unbehagen Advisors on the available COVID-19 government stimulus opportunities over the past few weeks. Past updates can all be found on our special COVID-19 updates site at:


We have been receiving a lot of positive feedback from our valued clients that these updates have really helped them and provided the confidence needed to take advantage of the stimulus options that are available for them. This has been our goal. We have dedicated many hours to help our clients with all of this. It is our goal to benefit our clients and improve their cash flow — in both good and bad economic times — since 1992.

As we have stated in our past newsletters pertaining to COVID-19 government stimulus, we feel confident that if you read this entire document, and review ALL links, you will have a good understanding of your options — as of today.



Filing for the PPP as an independent contractor/self employed:

TODAY (April 14) – The SBA came out with guidance on filing for the PPP loan if your are a sole proprietor (independent contractor), now defined by them as receiving a 1099-Misc Form and filing a Schedule C Form on your 2019 1040. To fully understand the SBA guidance one must read the full guidance by clicking the following link:


If you are a 1099-Misc recipient and/or file a Schedule C with your 2019 1040, then I recommend that you read the above link.


  • Must have a 2019 1040 Schedule C to file. Other proof including Form 1099-Misc may be additionally required as well to apply.
  • Loan is based on net-income as summarized on your 2019 Form 1040 Schedule C on line 31 of that Schedule C. Loan calculation is based on this amount divided by 12 times 2.5.
  • Forgiveness of the loan is based on what the SBA is calling “owner compensation replacement.” Basically, it is the amount of the 2019 Schedule C net income from line 31 of the Schedule C calculated on an eight week period.
  • There is further guidance in the above link if you are a Schedule C filer with employees, and for partnerships and LLC partners with distributions subject to SE tax.
  • As with all PPP Loans, you must contact your SBA approved business bank to apply.

Other IMPORTANT PPP Updates and Information:

  • You may still file for the PPP if you own a business with employees (see our previous posts on this). The application period for those loans started on 4/3/2020. More info by clicking HERE.
  • Not taking the PPP loan, but still paying employees? You may then qualify for the Employer Retention Credit and to defer payroll tax payments until the end of 2020. Form 7200 was created to calculate this.
  • Not taking the PPP loan, buy laying off employees instead? You and your past employees may qualify for Unemployment and the extra $600 per week payments from that, until employees are able to work.
  • The PPP loan, if not forgiven, is a 2 year loan at 1%. This has been adjusted from previous SBA guidance.
  • You can’t take the PPP loan AND unemployment compensation – same guidance as before.
  • The US Treasury recently explained what we have been stating, that they put the PPP loan in place so employers would be able to pay their employees similar wages as their 2019 averages, so that their employees would remain in place with their current employer until June 30, 2020 –INSTEAD of collecting unemployment during this period. This way the workers of the US would be able to keep the relationship with their employer, and those workers can go quickly back to work with their current employer since they have still been on their payroll ‘working’ for them. The US Treasury stated last night that for every dollar spent on the PPP Loans, that this would be the same dollar spent if they had to pay it to workers through unemployment compensation. They would rather pay it through the PPP if possible
  • There has been recent announcements from the US Treasury that additional funds will be added to this PPP loan SBA program soon, so that more funds are available to those that have yet to apply.
  • We are recommending that when you receive your PPP funds in your business bank account that you immediately open an additional, new business bank account and transfer those funds into it. In that new “PPP” bank account you will pay only your payroll, rent, mortgage interest and utilities as these are the only expenses that those PPP funds are to be used for. This way, after the June 30 (8 week) forgiveness of loan period, the funds can be easily identified as to their proper use for loan forgiveness.
  • The guidance is still that 75% or more of the PPP loan proceeds must be used within an 8 week period ending June 30, 2020, and STARTING as soon as the PPP proceeds are received, for payroll costs for the PPP loan to be forgiven.


Unfortunately, we have had quite a few of our clients reaching out to us stating that their bank has not been working well with them for their PPP loan, even though they are existing clients of the bank. Below is the SBA link that may help you find a bank that is willing to work with you on your PPP loan – even if you are not their existing client.





“Dear Applicant,

On March 29, 2020, following the passage of the CARES Act, the SBA provided small business owners and non-profits impacted by COVID-19 with the opportunity to obtain up to a $10,000 Advance on their Economic Injury Disaster Loan (EIDL). The Advance is available as part of the full EIDL application and will be transferred into the account you provide shortly after your application is submitted. To ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of your Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000.

You may be eligible for another loan program, the Paycheck Protection Program, which is available through participating lenders. Below is a comparison of the two loan programs:”


Should I apply for both the PPP and EIDL – How do they work together?

Yes, you should – if both loans make sense in your particular case. Applying for both loans ensures that you take full advantage of these programs to support your business. There are a few conditions to keep in mind when using both loans:

  • You cannot use funds from both loans for the same purposes.
  • For example, you can’t use both EIDL and PPP towards payroll. As long as you do not use the EIDL for payroll costs (rent, utilities and mortage interest as well), then your PPP loan forgiveness eligibility will not be affected. If the EIDL is used for payroll costs (rent, utilities and mortgage interest as well), your PPP amount will have to be used to refinance the EIDL.
  • Your EIDL advance grant cannot be combined with the PPP.
  • The EIDL can come with an advanced grant of up to $10,000 (see the above guidance on that). As a grant, it won’t have to be paid back. However, it will be subtracted from the PPP loan forgiveness amount and has to be declared when you apply for and receive the PPP.



Florida Unemployment has now updated their online application process. Employees, the self employed, independent contractors and those with reduced hours, that have been impacted by the COVID-19 crisis, may apply online. Here is the new site to apply for Florida Unemployment (called Reemployment in Florida):

Florida’s new Reemployment Application site (mobile friendly)



Individual stimulus payments to qualifying taxpayers have started being direct deposited by the IRS.

If you need to update your bank information for the direct deposit because the IRS does not have it from your recent tax return filing, then you can update it at:


If you qualify for the stimulus payment, and your bank information is not on file with the IRS, and you do not update your bank information above, they will mail you a check. However, this could take a while to receive.

TRACK YOUR STIMULUS PAYMENTS HERE: https://www.irs.gov/coronavirus/economic-impact-payments?fbclid=IwAR26O0-adv-P9Y4lYWKCAwRZKMOK5HJqBd4pFWCBMcyrBsz8voCBPv_Bpzg

Here’s how much individuals will get from the Economic Impact Payments

Employed full or part time? Unemployed? A temporary or gig worker? Retired or disabled? Receive public benefits? Have no income? Most U.S. residents – under certain income levels – will receive the Economic Impact Payment if they are not claimed as a dependent of another taxpayer and have a Social Security number.

Here’s how much the payments will be:

  • Eligible individuals will receive up to $1,200.
  • Eligible married couples will receive up to $2,400.
  • Eligible individuals will receive up to $500 for each qualifying child.

Taxpayers will receive a reduced payment if their adjusted gross income is between:

  • $75,000 and $99,000 if their filing status was single or married filing separately
  • $112,500 and $136,500 for head of household
  • $150,000 and $198,000 if their filing status was married filing jointly

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an Economic Impact Payment.

Payments will also be automatic for people who receive Social Security retirement, disability (SSDI), or survivor benefits or Railroad Retirement benefits who don’t normally file a tax return. Those receiving these benefits who aren’t claimed as a dependent on someone else’s return or required to file a tax return are eligible for a $1,200 payment. However, people in this group who have qualifying children under age 17 will need to provide information using the Non-Filers: Enter Payment Info tool to claim the $500 payment per child.

The IRS encourages people to share this information with family and friends.

Some people who normally don’t file a tax return may not realize they’re eligible for an Economic Impact Payment.

For additional and updated information, visit the Coronavirus Tax Relief page on IRS.gov.

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