Are you self employed or a business owner impacted by COVID19? Here are ways you can get paid for lost income
If you are a small busines owner, an independent contractor or self employed there are numerous new ways that you can take advantage of federal programs that will benefit you and your business.
Below, we will walk you through some.
Automatic Stimulus Payments
If you have filed taxes in 2018 or 2019 and fall under the income guidelines, you should be automatically getting a stimulus check.
Under the Coronavirus Aid, Relief, and Economic Security Act, adult taxpayers earning $75,000 or less are to receive $1,200, including an additional $500 a dependent. Americans making more than $99,000 will be phased out of getting the money.
Economic Injury Disaster Loan
Economic Injury Disaster Loan Emergency Advance
This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.
The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.
You can find out full details and more at this link.
Payroll Protection Program
The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll.
SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program.
Lenders may begin processing loan applications as soon as April 3, 2020. The Paycheck Protection Program will be available through June 30, 2020.
Increased ability to file for unemployment
If your income has been impacted by COVID-19 and you’re self-employed, you can file for unemployment benefits in your state. You’ll generally be entitled to $600 per week, plus half of the average unemployment benefit in your state. To qualify for benefits, though, you’ll need to prove that you’ve lost work due to the pandemic.