Covid-19 has reeked havoc on us personally and professionally and we have tried to do everything we can to help those in need. We wanted to send out some information that we have and will continue to update this as we get more information!
On Friday, 3/27/2020, the CARES Act (Coronavirus Aid, Relief and Economic Security) was signed into law. It contains several provisions for small business owners. Your life is likely touched by small business owners, particularly “personal service providers” like your hairstylist/barber, personal trainer, manicurist, nanny, and/or pet sitter.
I wanted to these new small business programs, which could be a lifeline for the small business owners that you know. The first program is a no-brainer: $10,000 emergency grant, no strings attached. The first two programs have upcoming deadlines, so they should apply now.
These resources are available to the “self-employed” and “sole proprietors”. They don’t need to have employees to qualify, so a self-employed person like a hairstylist will be eligible. I hope this helps the people you care about:
Economic Injury Disaster Loan (EIDL) – APPLY NOW
There might be a limited amount of money in this EIDL program, so apply right away!
For any small business that has fewer than 500 employees in all 50 states. Self-employed individuals and non-profits are also eligible for this program.
Normally SBA (federal Small Business Administration) loans are very difficult to get, but their EIDL program has fewer rules and documentation requirements. The EIDL allows for a $10,000 emergency grant to be issued for anyone who applies for an EIDL. The $10,000 emergency grant is given to business owners within three days of their application, and they’re allowed to keep that money even if they don’t qualify for an EIDL!
The application is simple and should only take 15 minutes tops: https://covid19relief.sba.gov/#/
Verizon Small Business Recovery Fund – APPLY NOW (deadline is Saturday, 4/4/2020)
Grants up to $10,000; especially for entrepreneurs of different ethnicity.
Paycheck Protection Program (PPP): apply starting April 3, 2020 banks that offers SBA loans
A federal loan from the SBA (Small Business Administration) that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
The loan will be at least partly forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
For any small business with fewer than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by coronavirus/COVID-19.
Even sole proprietors that don’t have employee are still allowed to apply.
Apply as soon as April 3, 2020. You have to go to a bank that is an SBA-approved lender, so start searching now: https://www.sba.gov/LenderMatch.
More information from the SBA: https://www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp
Please note: Even if you’ve had to lay off employees to this point, this PPP program would still be helpful for you for things like utilities & rent, etc.
Pandemic Unemployment Assistance
Brand new unemployment program for the self-employed.
States are still figuring out the details; continue to monitor.
Here’s information for California: https://www.edd.ca.gov/about_edd/coronavirus-2019.htm.
One-time “recovery rebate”: arriving in May at the earliest
Single people with up to $75,000 in adjusted gross income in 2019 will receive a one-time payment of $1,200.
Married couples with adjusted gross income up to $150,000 in 2019 will get a one-time payment of $2,400.
If you have kids under age 17, you’ll get an extra $500 per qualified child.
Payments phase out (are reduced) starting at $100,000 for singles, and $200,000 for couples without children.
If your 2019 income is too high, but your 2018 income meets the cutoff, then delay filing your 2019 return until the new deadline: July 15, 2020.
If your 2019 income meets the cutoff, but your 2018 income was too high, then file your 2019 return ASAP.