At Gogo BDS, we have a passion for small business and know that times are really difficult right now for many of you. With all the uncertainty, I wanted to be sure everyone had access to this vital information regarding programs that may help your small business.
However, as small business owners, there are numerous programs that you should know about beyond just stimulus relief. What is unusual about this act is that it includes contractors, sole proprietors, and the self-employed.
- Contract Laborers
- 1099 Employees
- Sole Proprietors
- Any small business with less than 500 employees
Paycheck 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 AND to ensure sole proprietors, independent contractors, and self-employed persons have a paycheck coming in during this difficult time.
How much could you expect to receive?
Example: If you earned $75,000 in 2019, that is equivalent to $6,250/month. Multiply that by 2 and you get $12,500 in covered payroll expenses from the program. In addition to that $12,500, the program allows for an extra 25% to cover other coverable expenses such as interest, mortgages and rent. This would provide you a total of $15,625 to combat this difficult time.
Enrolling in the program is relatively easy. You can find the official form here along with your closest banks offering the program.
NOTE: THIS LOAN DOES NOT HAVE TO BE PAID BACK IF YOU USE THE FUNDS FOR COVERED EXPENSES. Should it be determined that funds were not used appropriately, the loan would begin to be payable in 2 years at a 1% interest rate.
Economic Injury Disaster Loan Emergency Advance
Much like the Payroll Protection program, the Economic Injury Disaster Loan Emergency Advance does not have to be paid back. Despite being called a loan, no repayment is necessary if you qualify.
This loan advance will provide up to $10,000 of economic relief to businesses that are currently experiencing temporary difficulties. Sole proprietors, independent contractors and small businesses are eligible for this program. You can apply here.
Also be sure to check out our Facebook Group, The “G” Word for more tips and information.