Yes, but proceed with caution. There is no restriction on receiving both benefits, but as a general rule you should not use your PPP loan to cover your own compensation while at the same time receiving unemployment benefits.
What does the PPP loan mean for employees?
workers on payroll
The purpose of PPP is to keep workers on payroll. Still, PPP doesn’t require employers to pay all employees but failing to do so may affect how much of the loan is forgiven.
How can I get my PPP forgiven?
To apply for PPP loan forgiveness, use the SBA’s Loan Forgiveness Application form, Form 3508, or your lender’s equivalent form. You might be able to use Form 3508EZ or Form 3508S if you meet the eligibility guidelines. After completing the form and attaching any necessary documents, submit it to your lender.
Can I back pay employees with PPP loan?
Can I use the PPP on back pay? Yes, back pay fits within the definition of payroll that is incurred and paid within the 24-week forgiveness period.
How long do I have to apply for PPP forgiveness?
Borrowers can apply for forgiveness any time up to the maturity date of the loan. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
Can a PPP loan be forgiven for unemployment?
I also received a PPP loan in the summer, and while I thought I could pay myself from the PPP loan over 8 weeks I had to do it over 24 weeks (June – December). I used 100% of the loan to pay myself, and it should be forgiven. I was recently notified by email that unemployment reviewed my claim and I qualified for about $8000.
What happens if you get a PPP loan?
If you receive a PPP loan, you will need to report the money you receive from the PPP as income to your state’s unemployment agency. That will likely render you ineligible for unemployment. Once you spend your PPP, you could go back on unemployment if your business still isn’t open.
Do you have to report your PPP income to unemployment?
As the PPP’s name implies, the program was designed to keep workers employed. If you receive a PPP loan, you will need to report the money you receive from the PPP as income to your state’s unemployment agency. That will likely render you ineligible for unemployment.
When do you stop collecting PPP for unemployment?
Start your PPP weekly salary with just enough time to finish your monoey before the 24 weeks are finished. This will leave you the first x weeks without a PPP salary. So if you want to collect unemployment for the first number of weeks, then stop, this option can work for you. Doing so lowers your PPP weekly salary.
