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I am still open and paying employees who are working. Only 1 has elected to not work. I also pay myself as an employee of a S corp PC. Am I better off applying to PPP since there is more money or if so, will I not be able to use the funding for operating expenses other than rent and utilities? Thanks.

Where am I?

In Multifunding SBA CoronaVirus Support you can ask and answer questions and share your experience with others!

My understanding is 

QUESTION: What are allowable uses of loan proceeds?
Answer: • Payroll costs (as noted below)
• Costs related to the continuation of group health care benefits during periods of
paid sick, medical, or family leave, and insurance premiums
• Employee salaries, commissions, or similar compensations (see exclusions above)
• Payments of interest on any mortgage obligation (which shall not include any
prepayment of or payment of principal on a mortgage obligation)
• Rent (including rent under a lease agreement)
• Utilities
• Interest on any other debt obligations that were incurred before the covered period
QUESTION: What costs are eligible for payroll?
Answer: • Compensation (salary, wage, commission, or similar compensation, payment of cash tip or equivalent)
• Payment for vacation, parental, family, medical, or sick leave
• Allowance for dismissal or separation
• Payment required for the provisions of group health care benefits, including
insurance premiums
• Payment of any retirement benefit
• Payment of State or local tax assessed on the compensation of employees
QUESTION: What costs are not eligible for payroll?
Answer: • Employee/owner compensation over $100,000
• Taxes imposed or withheld under chapters 21, 22, and 24 of the IRS code
• Compensation of employees whose principal place of residence is outside of the U.S
• Qualified sick and family leave for which a credit is allowed under sections 7001 and
7003 of the Families First Coronavirus Response Act

 I think it comes down to how much you need to cover these costs vs other creditors etc as to whether PPP or EDIL is better for you

 

 

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