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PPP loan Issue

I just got a call from someone (sole proprietor) who asked for and got both unemployment insurance AND a PPP loan, without realizing that was a no-no. Now he wants to figure out the best way to deal with this.

I haven't analyzed the law. But it makes sense to me that getting the PPP loan wouldn't be inconsistent with getting unemployment if he doesn't ask for forgiveness of the loan, and pays it back when it's due.

Am I way off base here? Is there a better way to deal with this? Should he just pay the whole loan back now and not apply for another one?

Thanks for any insight.

Reply to
Stuart O. Bronstein
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It is possible to get both without violating the rules. The key is that you can't use the PPP loan for the same pay periods that you collect unemployment. For instance, my daughter received her PPP loan with the first disbursements, but didn't apply for PUA until her 8-week PPP forgiveness period expired. She will probably apply for the second draw this week. If she gets it, she will again refrain from applying for any unemployment benefits until she meets the requirements for loan forgiveness.

Ira Smilovitz, EA Leonia, NJ

Reply to
ira smilovitz

Thanks Ira. If that's not available in this case, do you think my idea to just not apply for loan forgiveness will be sufficient to avoid trouble?

Reply to
Stuart O. Bronstein

I don't know.

Ira Smilovitz, EA Leonia, NJ

Reply to
ira smilovitz

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