Free Money from the Paycheck Protection Program

I currently owe the IRS something in the neighborhood of $73,350. That’s $2,165 less than it was a few weeks ago because my oldest remaining tax debt fell off the statute of limitations ledge this month and became forever uncollectible. Of what remains, about $51,000 is the original tax I owed, and the rest is penalties & interest.

In spite of that, I fully expect the IRS to send me a $1,200 “stimulus” payment (and a signed letter from our Dear Leader congratulating himself for giving it to me) before too long.

And today, I got a $8,100 “Paycheck Protection Program” loan. Although it is technically a loan, it is designed in such a way that I am not expected to pay back the principal (I think I am on the hook for the 1% interest). Even better, unlike most forgiven loans, this one will apparently not count as taxable income. It’s just free money from The Man. I’m a little astonished. One bureau of the government sends me pleading letters demanding that I pay up, while others eagerly shove bundles of cash at me.

If you are a Schedule C / 1099 / sole proprietor / passthrough business whose livelihood is threatened by the whole pandemic thing, you should really look into this. It seems to be a first-come/first-served sort of program, and the word is getting out in a sort of haphazard way, so tell your friends as well.