Did signing up for an SBA loan mess up my chance for unemployment?
I'm a self-employed jeweler. I applied for unemployment in March & April but got $0.00 in benefits. Then April 28, the EDD opened up PUA for self-employed. I applied.
An ID verification request letter came. I sent all the documents requested. Is EDD stuck on pre PUA claims? 5 more weeks no word. I apply again on 6/1.
All my other fellow exhibitors are getting unemployment. I compared their application answers - mine are the same. I did get a $1000 loan advance I could return but I did not take the SBA EIDL loan. I'm racking my brain to figure out why my unemployment is not going thru!??
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Answers (1-10)
There have been many issues with unemployment insurance claims, specifically with regard to the self-employed. If you applied before the claims were opened to the self-employed, your claim is likely stuck in a pending mode, because you are in two places on their system. I have seen this with other clients. In your case, you should contact DES on their service line and explain you applied in both instances (on the regular unemployment portal and on the self-employed portal, so your claim may be in both portals, showing as denied in one, and so they may ask you to take steps of releasing your claim from one portal, or they may need to update your status. All the best with that and much patience will be needed during these times.
As for the SBA Loan, SBA Loans are not deemed income, and they are designed to assist the business with paying business expenses. So, if part of your business expenses include paying yourself, then you are receiving income, as you are continuing to pay yourself as a result of the loan as a business expense (i.e. payroll). But, the loan itself is not income.
Notwithstanding, this should not adversely impact your application for unemployment. Any income received, you would just report to DES, as part of your unemployment process, but receiving the loan in and of itself, should not automatically make you ineligible. It could impact the amount received for that particular period, based on your eligibility and it is reported and received as income. Hope this helps.
Be well!
We received the PPP loan and have put our employees on Shared Work. I cannot be open full time yet, so my employees are working 20 hours a week for me and are getting unemployment for the other 20 hours.
I don't think so, however, if you succeed that might be a different story.
By "self-employed jeweler," I assume you are an independent contractor or sole proprietor. As such you would not qualify for EDD unemployment insurance as you are not an employee. But, it sounds like you applied through the EDD website. It probably forwarded you to the Pandemic Emergency Unemployment Insurance federal program. But, that only becomes available if you have exhausted hour EDD unemployment benefits, which you did not do because you were not eligible for those CA benefits.
But, since you received the $1,000 from the SBA EIDL program (the first step), you should have continued through that process to find how much you would have qualified to be paid under that program. While it is a loan, the interest is no higher than 3.75% with no payments for the first year.
Chris Schaefer
dt a direct answer. You may have to wait on hold for awhilte.on't know. However, the dept. of labor is answering it's phone again. Give them a call and you will get and answer.Ou may have to wai on hold for awhile
A loan is not usually considered income due to the obligation to repay. I recommend that you review the SBA loan documents regarding treatment of the loan amounts which are not to be repaid as a result of being forgiven. As to the unemployment benefits claim, your responses to EDD's inquiry regarding income very important especially in light of your characterization of of the SBA loan funds.
Probably not because the SBA loan would only have been to pay rent and/or pay employee salaries, i.e., I believe it is something like 80% of it or so is supposed to be for that. However, I cannot be certain as this is not my area of practice. My recommendation is that you contact Unemployment and inquire of them why you were denied benefits.
Your SBA loan is for business purposes, such as payroll, rent, expenses. It is not related to your eligibility for Federal pandemic unemployment benefits. Did you apply for state benefits or Federal pandemic benefits? There are 2 different online systems. Call your unemployment office to find out why you're not getting benefits.
Since the SBA loan was to enable the company to continue to pay regular wages - one would think it's an either/or. Otherwise an employee is in essence "double dipping" by getting their regular pay and unemployment benefits.
sorry, but I am not sure. I am a partner in a company and we chose to apply for the PPP grant and therefore did not apply for unemplyment