Ask Terry Questions PPP loan for person on PUA unemployment

PPP loan for person on PUA unemployment

By Terry Savage on July 12, 2020 | Wild Card

Hi terry, here’s a complex one…i’m an independent contractor (consultant) who was furloughed from my client. finally started receiving PUA unemployment benefits. i also applied for PPP loan and received approval (via Bluevine) but haven’t activated (small amount –$6000). but have read that you can’t receive both PUA and PPP simultaneously, tho there seems to be varying opinions on this. Some think you can take both if you intend to take the PPP as low-interest loan to be repaid rather than forgivable loan. is that correct? and if so, at what point do you declare your intention for how loan will be used (forgivable vs non-forgivable)? thanks much for any guidance you can provide!

Terry Says

I definitely think from my research that this issue is open to interpretation — and may depend on the situation. For example, if you use PPP funds only to retain employees on the payroll (or pay rent), the money would not be considered income to you – -and not have to be reported when you certify for unemployment benefits.

Here’s a link to a definitive comment on, and the relevant point:

13. Is it possible to have overlap, e.g. UEI until PPP loan funds are received, or after PPP is supposedly used up through the end of June?

Yes, but individuals using more than one program are urged to be careful with the timing. You may qualify for PUA benefits until the PPP funds are received, and again after the PPP funds are depleted—but individuals should not apply for benefits for the period when they are relying upon PPP funds.

This is a question I would ask the bank that is disbursing the PPP loan. They are required to know the rules. And get their answer in writing so if you are challenged later you can rely on their written advice.



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