COVID-19 / CARES Act FAQs

Questions and Answers Posted Daily - Last Updated 04/29/20

Paycheck Protection Program (3)

On April 24, 2020 a new bill was signed into law that sent more money to the PPP, EIDL, and other causes. Here is the breakdown.

There were $484 billion total issued in this bill:

$321 billion for Paycheck Protection Program

$60 billion for Economic Injury Disaster Relief Advance program

$75 billion for hospitals

$25 billion for testing

Unemployment benefits are almost always personally taxable.

PPP and EIDL amounts are not generally subject to income tax.

As part of the CARES Act passed on March 27, 2020, a large amount of money is allocated towards a program known as the Paycheck Protection Program (PPP). In a nutshell, this program allows for a loan of 2.5x average monthly payroll which, if you use it for a few specified purposes (payroll, business rent, business utilities, etc.) will be FORGIVEN! Meaning you don’t have to pay the money back. Read that again.

Ok, so what’s such a big deal? Well, this program is open to all small businesses, 501(c)(3)’s, sole proprietors, and independent contractors — that’s right, sole-proprietors, freelancers, and IC’s? You are included in this too.

Work In Progress

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