In today's video, I'm going to talk about government benefits for drivers, right? Sure drivers, delivery drivers. So we're going to talk about EIDL and PPP. There've been some new developments. Some of you have asked a question like what's the difference? What can you spend that money on? Unemployment insurance. Where are we at with that? And stick around at the end of the video, I'm going to share with you my prediction about the FPUC. That's the federal pandemic unemployment compensation. That's the extra $600, which is due to expire on July 31st. I'll tell you whether I think that's going to continue or not. Hey everybody, it is Jay Creator with the ride share guy drinking my Nespresso on a very warm Wednesday in Roosevelt, California. It's going to hit triple digits today. I'm a little sweaty here in my ride share guy shirt. The colors, flying the colors of the ride share guy. I get some of the swag. Pretty great. All right, let's jump into a little background here. So this pandemic thing started with late February, March. That's when most of us kind of realized things were completely different. And we went up like this, right? And then supposedly we're supposed to go down like that. But let's look at what's really going on here. So what you see here is Forbes pointing out that boy, a lot of states are struggling. Texas and Florida, both on the upswing. California just hit a record daily high. Arkansas, Alabama, North Carolina, South Carolina, Utah, and Alaska have been seeing surging numbers. Okay. Other states. Arizona's going through the roof. Arkansas, Hawaii, North Carolina, Utah, and Vermont. Okay. It's some states and cities have walked back reopening measures in response to surging cases. Oregon's governor put the reopening process on pause on Friday after they saw a rise. So it's interesting. This is important to us because when there's more cases, that means our chance of getting sick ourselves in the car is higher. So whereas it seemed like the economy was really starting to heat up, you know, are you going to go back to work or not? So that means these benefits that we're getting and whether they're going to continue are even more important. Okay. Number one is the EIDL, Economic Injury Disaster Loan. Now this was exciting at the beginning because they promised, well, they didn't promise. They said there was going to be $10,000 in grant money. That means like free money. All you had to do was apply, no credit check, just put in your information and boom, we'd see money in our bank. Well, then it became you're only going to get $1,000 per employee, which for most of us was one. And we, we, many of us got that money. Then they shut that plan down for drivers. They only made it available for agriculture businesses. Well, on June 15th, they opened it up again. So if you didn't get your $1,000, you can go to the website now and apply. Just Google EIDL application and it'll take you right to the SBA site and you can apply. And more than likely, you'll get $1,000 put into your bank account. Now, the question has come up is, what can you use this money for? Well, for the grant money, you can use it for whatever you want. If you then get a loan on top of that, you're going to have to pay that money back. That is not forgivable. And I made this little chart here so you can see that the EIDL grant can be used for essentially any business purpose, primarily paying employees, paying yourself and buying materials. So it would be things like water for your, you know, for, they would get you cut for your car, cleaning supplies, things like that. It can't be used for physical repairs, expansions, bonuses, refinancing, long term debt. So as long as you use the money to pay yourself and just run your business, that's what you can use the money for. But again, beyond that initial grant that you're going to get, you're going to have to pay that money back. Okay, number two is the PPP Paycheck Protection Program. This started off really exciting because initially they didn't ask for any tax documents in order to get the loan. It changed and now the loan amount that you can get is based on your 2019 tax return line 31 on your schedule C, which for many drivers is a pretty small amount. Let's say for example, you made $40,000, but after all the deductions, like the mileage deduction, you only, you cleared a net of 12,000. That's what's on line 31 schedule C. Well, that's $1,000 a month. The maximum you can get your loan is two and a half times that. That would be $2,500. But the loan is 100% forgivable as long as you use it for certain categories such as payroll. Okay, so according to cabbage, you can see that it's forgivable if you use it for payroll costs, salaries, costs related to the continuation of group health care benefits, insurance premiums, mortgage interest payments, rent and utilities. So as long as you use the money for those purposes, it's forgivable. Number three, what's the difference between the EIDL and the PPP? Well the big difference is that the EIDL for the first 1,000 to 10,000 that you get, that's considered a grant which you don't have to pay back. But anything above that, you're going to have to pay it back 100%. With the PPP loan, the whole loan can be forgiven as long as you use it to cover the categories that are already presented. Now this nice chart here shows you a comparison of the two. And as I scroll down, you can see you can get quite a bit more money with the PPP up to $10 million, whereas the EIDL is just 150,000. And then forgivable. The EIDL, the 10K advance grant, that's totally, you don't have to pay that back. And the PPP is 100% forgivable. All right. And then there's different terms, yeah. But basically those are the big differences. And according to money, you can get both the EIDL and the PPP, but you can't use the money from both for the same purposes. So number four, unemployment insurance, UI. So UI unemployment insurance has been typically just for employees. And the CARES AgPACs passed on March 27th. They created the PUA, pandemic unemployment assistance, which made sole proprietors independent contractors. They could qualify. And included in that was the FPUC. And that is what gives us an extra $600 for the months of April, May, June, and July. Nothing's really changed here. Approximately two thirds of people who qualify have gotten their money and one third have not. They're still working through the kinks. I gotta say I feel for people who are frustrated because they're trying so hard. I keep seeing on the news these lines of people lining up to go talk to somebody, trying to call on the phone. It's like pulling a needle out of a haystack. So you just gotta keep going, keep trying, and eventually you'll make that connection and get those funds flowing. Number five, what are some updates? As you can see here, the big update is the PPP loan forgiveness new easy application tips. All right. And basically if you can see here, this is the easy loan forgiveness application. And as I scroll down to the red circle, you can see it's super simple. They're not asking for any tax forms. They're just asking you to fill in the amounts. So if you got a $4,000 loan, you're gonna put payroll cost $4,000. Boom, 100% forgivable, sign it and submit it. So they made it really simple for us where the majority of our money is payroll to submit the document and get the loan forgiven. Key takeaways. This thing is not over by a long shot. It seems like we are the country that can't manage to go like that, okay? We're the country that kinda goes like that and now we're just sorta like that and now we're kinda going back up again. So that means the danger of driving people around in our car is higher and that comes back to the question, are you gonna go back and drive or are you gonna stay home and collect benefits as long as you've got them. So the benefits of the big one, the $600 per week is coming to an end on July 31st. Here's my prediction. It's gonna continue at least until the election. I really think that the news over the last week has not been good. There's still 20 million people who are unemployed and there's this multiplier effect that when they put money into people's hands, it increases the GDP by a certain amount which is good, which supports the economy. I really think the Republicans even though they've really pushed against it, they wanna win the election and therefore they're gonna come to a meeting of the mines and well, the Democrats want that to extend until January. I think we're gonna at least get to the election because a happy citizenry wants to vote for the incumbent president. So that's my prediction. We will see. Let's hope so. Yeah, it's pretty sweet deal right now and I don't like having to make the choice to risk my health or make money. So while we're getting benefits, it's nice that we can make money and not risk our health at the same time. Alright, thanks for watching the video. Thank you so much. My name is Jay Crater. If you have not subscribed yet to our YouTube channel, subscribe. Join us. We put out five videos every single week. Sign up for notifications. You'll be notified when we do another YouTube live. Okay? And you go out and have a great day. Enjoy the summer weather. Bye for now.