Enhanced Unemployment Benefits

• Eligible if unable to work due to COVID-19 or business is shut down
• Self-employed individuals are eligible
• Benefit based on income plus $600 per week provided by Federal government
• Benefits for 39 weeks
• Extra $600 from Federal government, will last up to 4 months
• Use https://neworks.nebraska.gov to apply
  •     Appears applications are available for employees
  •     Does not appear to be set up for self-employed persons yet – will need to call

Payroll Protection Program

• Eligible if less than 500 employees, including sole proprietorships, independent contractors and nonprofit organizations
• Loan to cover payroll and other operating expenses
• Immediate cash loans and a portion may be forgivable
• Maximum loan is 250% of average monthly payroll
  •     Example:  Monthly payroll $10,000 x 250% = $25,000 maximum loan
• Monthly payroll includes:
  •     Group health benefits
  •     Retirement benefits
  •     State and local payroll taxes
  •     Sole proprietor and independent contractor compensation (up to $100,000 per year)
• Loan may be used for:
  •     Payroll costs
  •     Rent
  •     Interest on mortgages and other debt incurred before 3-1-2020
  •     Utilities
• Loan is forgiven to the extent loan proceeds are used for payroll costs, rent, interest on specified loans and utilities
• Interest rate is 0.5% (one-half percent) and maximum term is 10 years
• Payments can be deferred from 6 months to 1 year
• Application is required for forgiveness providing documentation of costs paid
• Loan forgiveness is reduced in proportion to reduction in number of employees or employee salaries are reduced by more than 25%
• Reduction in forgiveness can be avoided if employees are rehired or compensation is increased in allotted time period
• Apply for Payroll Protection Program loan through any SBA lender (referred to as a 7(a) lender)

Economic Injury Disaster Loan (EIDL) and Grants

• Eligible if under 500 employees, including sole proprietorships, independent contractors and nonprofit organizations
• Emergency $10,000 GRANT is available
  •     Apply at https://www.sba.gov/page/disaster-loan-applications
  •     Use the link at the top of the page in the yellow area
  •     Should be direct deposited within 3 days of accepted application
  •     Grant does not need to be repaid
• EIDL Loan
  •     Working capital loan up to $2 million
    •         Can be used for any costs that could have been paid if the disaster had not occurred
  •     Interest rate is 3.75% for businesses and 2.75% for private nonprofits
  •     Maximum loan term is 30 years
  •     Apply for loan online, by mail, in person or by phone
  •     Online application site is https://www.sba.gov/page/disaster-loan-applications
  •     Businesses can apply for both a Paycheck Protection Plan loan and an EIDL loan
    •         EIDL loan must be used for purposes other than those for the Paycheck Protection Plan loan

Labenz & Associates LLC Disclosure:  The information provided is general in nature based on provisions as of March 31, 2020.  Additional provisions may apply.  Please discuss the provisions with your tax advisor and SBA lender.