Can I receive government aid for my business and if so, how do I apply?
As the coronavirus continues to halt business, navigating this new reality is proving to be difficult, especially for entrepreneurs.
To help, I’ve created a list of COVID-19 stimulus packages designed for entrepreneurs, solopreneurs and freelancers who have been negatively impacted by the pandemic.
If figuring out these new policies already feels overwhelming, I understand. Let’s talk about it during your free 30-minute consultation.
Government-Provided COVID-19 Resources:
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) expands the amount of relief to be provided to small businesses, solopreneurs and individuals.
This bill extends unemployment benefits to self-employed people – providing assistance that was previously withheld from entrepreneurs.
The Freelancer’s Union is busy advocating for government support on your behalf.
In the meantime, they just started the Freelancers Relief Fund offering up to $1,000. Applications for funding available beginning on April 2, 2020.
3. SBA Economic Injury Disaster Loan Program
The U.S. Small Business Administration announced the Economic Injury Disaster Loan program which will begin providing up to $2MM in loan assistance to each business that can be used “to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact.”
NOTE: The interest rate on these loans is 3.75% for small businesses and 2.75% for nonprofits. Term will not exceed 30 years. The repayment terms will be determined by ability to repay the loan.
Have all personal and business financial information nearby when completing this application as it is very intensive. Solopreneurs ARE eligible.
4. NYC Employee Retention Grant Funding
A grant for small businesses with fewer than 5 employees to cover 40% of payroll costs for 2 months to help retain employees. Must provide proof of:
§ 25% or more decrease in revenue over Jan/Feb/March 2020 and how that compares with the same period in 2019.
§ Payroll records for Jan/Feb/March 2020 that reflect the 1-4 employees.
Solopreneurs/freelancers are NOT currently eligible.
5. NYC Continuity Loan Funding
Businesses with fewer than 100 employees who have seen sales decrease 25% or more will be eligible for zero interest loans of up to $75,000 to help mitigate losses in profit. Complete this survey to indicate interest to be notified when the application is available. Must provide proof of:
§ 25% or more decrease in revenue over Jan/Feb/March 2020 and how that compares with the same period in 2019.
Solopreneurs/freelancers are NOT currently eligible.
If you have any questions about government-provided COVID-19 resources, please click here to contact me.
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Application Tips for COVID-19 Resources
§ Continuously save your work online – the sites are prone to crash as traffic volume increases.
§ Provide accurate and reliable contact info – they will contact you through email and phone- you don’t want their follow up messages.
§ Answer honestly and give them exactly what they ask for in the application (there’s no room for confusion right now).
§ Avoid delays for missing information. See above.
§ Keep your books up to date!!
§ Have your 2019 tax return done ASAP as it may be a condition for receiving assistance.
