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
- 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.