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Asked a question 10 months ago

I am a small business owner with less than 500 employees. We sadly had to layoff off all of our employees at the close of the day on March 18. have currently applied for EIDL grant/loan and will be applying for PPP. A portion of my compenation was paid as a wage to me through payroll. Since i have been technically terminated as well, i was going to apply for unemployment. Should i proceed with that unemployemnt application or wait until the loan applications process and loan option I chose is completed? in other words, I dont want my unemployment app for me to compromise my other loan applications in any way. Thx!

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Good question. I have been thinking about this too. My working conclusion until corrected is this: General rule for defining payroll costs is calendar 2019. Application requires disclosure of number of jobs, which appears to be average FTEs for Jan and Feb 2020. Based on this data, 2.5 times payroll costs funded as part of loan. From date of funding plus eight weeks, measure payroll costs, rent, mortgage interest and utilities against loan amount. Difference determines if loan forgiven to to be repaid. If result indicates balance due, secondary relief available if jobs added back by June 30. (simplifying a little). Welcome comments from others.