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.
Everyone is likely aware that the CARES Act was passed and many people are focusing on the stimulus and unemployment portions of that act.
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.
I want your small business to stay as strong as possible during this time! If you fall into any of these categories, you may qualify for programs you were previously unable to apply for due to your business status.
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.
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.If you are a sole proprietor, independent contractor, or self-employed person, the program will take your income (as reported on your 2019 tax return) up to $100,000 and provide income protection for 2 months plus an additional 25% allowable for rent and other expenses.
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.
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.
I strongly urge each of you to take a look at these programs to see if you may qualify. I look forward to a strong return for each of you and if you need anything from us, don’t hesitate to reach out.