As you've most likely heard, Congress and President Trump have passed into law the coronavirus relief bill. We're reading the bill, calling bankers, calling the SBA, following the steps ourselves and watching all reputable information sources in order to bring you the complete information.
This is a huge opportunity. The bill provides robustly for small businesses and gives plenty of opportunities for freelancers, gig workers, independent contractors and mom and pop shops.
Here's what we know so far:
Economic Injury Disaster Loan (EIDL): This application is already available and it provides some pretty mouthwatering opportunities for small businesses. It must be paid back unless it is used for payroll, rent, mortgages. This is a working capital loan at a rate of 3.75%. If you use this for rent, payroll, mortgage, you do not have to pay it back, otherwise.
EIDL provides up to $2 million to small businesses based on credit score. This has a $10K advance payment that never has to be repaid, regardless of how it is used. You will get this advancement in three days from the date of your application. You need to have an account readily available.
If you have multiple businesses,ie LLC's, S Corps, C Corps, partnerships, nonprofit each business qualifies. You must submit an separate application for each business to qualify for the 10k for each business. Also be sure to have different accounts for each business.
Payroll Protection Plan loan that is specifically for ensuring you keep your payroll employees. It must be used in 8 weeks and used for payroll, rent, mortgage and increased supply chain costs. The application for this is not out yet. We're working to get more details. It gives 2.5x the payroll amount of your past 12 months (Feb 2019 to Jan 2020).
Who qualifies for the small business relief:
Any business having 500 employees or less. You can be an independent contractor, and independent distributor a sole proprietor, a non-profit, or have a loss or millions in gross receipts from prior years.
You can be real estate developer, a landlord, a day trader, a Lyft driver, or have your business on the side.
The only requirement is that you are self-employed as of March 1st, 2020 with less than 500 employees. If you started your business after March 2nd or have 500 or more employees, you don't qualify.
What you'll need to apply:
Tax ID # for all your business(es); can use SSN if freelancer
Business address(es)
Bank accounts to send your 10k (routing, acct#, bank name)
List of owners for each business and percentage ownership
2019 Tax returns
Your industry NAICS code
Click the button below to apply.
Apply quickly! The 10k advancement is first come first served! Don't mess this up. Ask for help if you need it.
What you don't need right now (but will later):
Personal financial statements
Accounting/bookkeeping done
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