The stimulus package provided a number of measures to grant relief for small businesses. In addition, it also held options for independent contractors in its text, including the possibility of forgivable loans.
Economic Disaster Impact Loans (EIDLs): This program promises an advance of up to $10,000 on unsecured working capital loans. Businesses may apply for up to $2 million. The loans are intended to provide economic relief to businesses that have a temporary loss of revenue. Applications opened to small businesses (fewer than 500 employees for most industries) on April 3 and to independent contractors on April 10.
The SBA’s site says “funds will be made available following a successful application. This loan advance will not have to be repaid.” However, the loans must be used for fixed debts, such as rent; payroll; accounts payable; some bills the business cannot pay as a result of COVID-19’s impact. The simple application to get the process started can be found here. Supporting documentation, such as tax returns and a current year profit and loss statement, may be required.
Paycheck Protection Program Loans (PPP): Small businesses may apply for relief through the Paycheck Protection Program 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. Available through June 30, the PPP is designed to help small businesses meet payroll and benefit costs for up to eight weeks. The loans can also be used for mortgages, rent, and utilities. If the loans are used for such approved purposes, all or part of the loan may be forgiven.
Some financial institutions are focused on those customers with whom they have existing financial relationships. A statement issued by TD Bank reads, “Existing customers with a business deposit account or loan can apply for the PPP through TD. Those business customers without a business deposit account will be required to open one as part of TD’s PPP loan process. We will evaluate expanding this program to other eligible businesses in our Maine to Florida footprint as soon as possible.” Reports based on information from the SBA’s Massachusetts office indicated that EIDL advances would be adjusted to $1,000 per employee. (Attempts to reach the SBA for comment about these programs have been unsuccessful.)
Relief for existing SBA loans: If you already have an SBA loan, you may be eligible for relief. The CARES Act also earmarked $17 billion to cover up to six months of payments on existing 7(a), Community Advantage, 504, and microloan programs.
Expanded unemployment insurance options: The CARES Act also gave states the option to extend unemployment compensation—including the $600 weekly increase—to independent contractors, who are ordinarily ineligible for benefits. Contact your state unemployment office for details.
Unfortunately, while the direction to apply for relief seems straightforward, actually getting answers is more challenging. While EIDL advances were supposed to be forthcoming within days of application, it is unclear whether funds have begun to be disbursed. A release issued on April 9 by the National Federation of Independent Business (NFIB) said that 70% of small businesses had applied for PPP loans and nearly half applied for EIDLs, but none had yet received emergency grants.
OTHER GRANTS AND RELIEF FUNDS
In addition to resources provided by the CARES Act, a number of state, local, nonprofit, and corporate initiatives are available for independent contractors to seek relief. Finding them requires a mix of research skills and resourcefulness, says grant writer and expert Meredith Noble. She advises looking at industry groups and media roundups of grant-making groups. And she says that spending a little time creating the resources you’ll need to apply, including a thoughtful essay about why you need the funds, can pay off in the long run.
“They’re such short applications, a lot of these are really small form. So, it’s very tempting just do it really quickly, just bang it out,” she says. Instead, try a more organized approach that allows you to track your efforts and avoid rewriting the same pitch over and over. “Keep track of all of your responses in a separate [document], so you can repurpose that text quickly,” she says. Noble also produced a webinar on applying for grants.
A good place to start looking for such opportunities is with your state and local departments of economic development, with professional groups, and industry associations and industry-focused nonprofits. For creative freelancers, funds like Comedy Gives Back, the American Society of Journalists and Authors’ Writers Emergency Assistance Fund, PEN America Writers Emergency Fund, National Academy of Recording Arts and Sciences’ MusiCares Coronavirus Relief Fund, and others can meet short-term expenses. Freelancer’s Union, an advocacy group for independent workers, provides emergency grants. And corporations like Verizon, Hello Alice, and Facebook are also taking action. (Small businesses must have at least two employees to be eligible for the Facebook program.)
A number of websites, such as COVID-19 and Freelance Artists, Grantspace, Grantstation, and others have begun aggregating opportunities for small businesses, freelancers, and individuals.
Even with these initiatives, freelancers and independent contractors may run into delays, lack of funding, or other obstacles. “We have a lot of different relief efforts happening within different industries, trying to get money that is fundraised into the hands of workers who need it most,” says Rafael Espinal, executive director of New York City-based Freelancers Union. But aside from their ability to draw on their own credit and incur debt, relief is scattershot and insufficient. “I would say they’re in a really difficult situation right now.”
Additional access to Small Business Loans: This global pandemic and economic recession has hit small businesses and freelancers from all industries. Many of them don’t have access to funds needed to cover the expenses of COVID-19. The SBA imperfections on the PPP applying process has left out many freelancers and small businesses from getting access to this new loan. However, many online lenders with high-quality loans are now allowed to be direct lenders from the SBA and provide funding through PPP.”
47 thoughts on “What Freelancers Need to Know About COVID-19 Economic Relief”
It is not my first time to go to see this website, i am browsing this site dailly and
obtain good information from here every day.
Hi there very cool website!! Guy .. Beautiful .. Superb ..
I’ll bookmark your site and take the feeds also? I’m satisfied to search out a lot of helpful
info here within the put up, we need work out more strategies in this regard, thank you for sharing.
. . . . .
Wow, that’s what I was searching for, what a stuff!
existing here at this blog, thanks admin of this site.
Hi there! I could have sworn I’ve been to this web site before but after going through a few of the articles I
realized it’s new to me. Anyways, I’m certainly delighted I stumbled upon it and I’ll
be bookmarking it and checking back often!
Poѕt writing is also a excitement, if you ƅe familiar with thben you can write or else it is
complіcated to write.
Tһis is myy first time payy a vіsit at here and i am in fact pleassant to read evｅrthig at one placе.
Fine way of telling, and pleasant post to take information concerning my presentation subject, which i am going to present in college.
Ꮋey there I am so excited I found your weblog, I really foսnd
yoou by еrror, while I wass browsing on Diɡg for somеthing else, Anywayѕ I amm here
now and would just like to say kudo fⲟr a fantastic post andd a all round
entertaining bloց (I also love tthe theme/design), I don’t have
time to go through it аⅼl at thhe minute but I have book-marked it and also included уuｒ RSS feeds, so whеn I have time I will
bｅ back to read much more, Please do keep up the fantaѕtic work.
When someone writes an article he/she retains the thought of a user in his/her brain that how a user
can understand it. Therefore that’s why this post is great.
Thank you for sharing your thoughts. I truly appreciate your
efforts and I will be waiting for your next write ups thank you once again.
My partner and I stumbled over here coming from a different web address
and thought I might check things out. I like
what I see so now i am following you. Look forward to going over your web page for a second time.
Your style is very unique compared to other people I have read stuff from.
Many thanks for posting when you have the opportunity, Guess I’ll
just bookmark this site.
Great delivery. Sound arguments. Keep up the amazing
Hey! This is kind of off topic but I need some advice from an established
blog. Is it very difficult to set up your own blog?
I’m not very techincal but I can figure things out pretty quick.
I’m thinking about making my own but I’m not sure where to begin. Do
you have any points or suggestions? Thanks
Fantastic blog you have here but I was wanting to know if you
knew of any user discussion forums that cover the same topics discussed here?
I’d really like to be a part of online community where I can get responses from other experienced individuals that
share the same interest. If you have any recommendations, please let me
know. Thank you!
I’m truly enjoying the design and layout of your blog. It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a designer to create your theme? Excellent work!
I’m not sure why but this web site is loading extremely slow for me.
Is anyone else having this issue or is it a issue on my end?
I’ll check back later and see if the problem still
Hi there would you mind letting me know which web host
you’re working with? I’ve loaded your blog in 3 different web browsers and I must say this
blog loads a lot faster then most. Can you suggest a good hosting provider at a honest price?
Thanks a lot, I appreciate it!
Thank you for any other informative blog. The place else could I am getting that type of information written in such an ideal manner?
I have a venture that I’m simply now running on, and I have been at the glance out for such information.
Wonderful post but I was wondering if you could write a litte more on this topic? I’d be very thankful if you could elaborate a little bit more. Appreciate it!
Howdy! I know this is somewhat off topic but I was wondering
which blog platform are you using for this site?
I’m getting sick and tired of WordPress because I’ve had issues with hackers and
I’m looking at alternatives for another platform.
I would be awesome if you could point me in the direction of a good platform.
Hi, i think that i saw you visited my web site so i return the prefer?I am attempting to find things to improve my site!I suppose its adequate to use some of your ideas!!
It is really a great and helpful piece of information. I am glad that you shared this helpful info with us. Please keep us up to date like this. Thanks for sharing.
This is really interesting, You are a very skilled blogger.
I have joined your feed and look forward to seeking more of your excellent post.
Also, I have shared your website in my social networks!
Outstanding story there. What happened after? Thanks!
This is really interesting, You’re a very skilled blogger. I’ve joined your rss feed and look forward to seeking more of your excellent post. Also, I have shared your web site in my social networks!
Can I just say what a relief to find somebody that genuinely knows what they’re
discussing over the internet. You definitely understand how to bring a problem to
light and make it important. More and more people have to
check this out and understand this side of your story. I can’t believe
you aren’t more popular given that you surely have the gift.
If you are going for most excellent contents like myself, just visit this web page everyday for the reason that it presents feature contents,
One thing I’d like to discuss is that fat reduction plan fast can be performed by the appropriate diet and exercise. People’s size not simply affects appearance, but also the overall quality of life. Self-esteem, depression, health risks, plus physical abilities are afflicted in weight gain. It is possible to do everything right but still gain. In such a circumstance, a condition may be the culprit. While an excessive amount of food rather than enough exercise are usually to blame, common medical conditions and popular prescriptions can easily greatly enhance size. Thx for your post here.
This is very interesting, You’re a very skilled blogger.
I’ve joined your rss feed and look forward to seeking more of your great post.
Also, I have shared your site in my social networks!
I think this is among the most significant info for me. And i am glad reading your article. But wanna remark on few general things, The site style is great, the articles is really nice : D. Good job, cheers
Greetings! This is my first comment here so I just wanted to give a quick shout out and tell you I truly enjoy reading through your posts. Can you recommend any other blogs/websites/forums that cover the same subjects? Thanks for your time!
26926 337349 There are some interesting points in time in this article but I dont know if I see all of them center to heart. There is some validity but I will take hold opinion until I look into it further. Great write-up , thanks and we want a lot more! Added to FeedBurner as well 727063
When I initially commented I clicked the “Notify me when new comments are added” checkbox and now each time a comment is added I get several e-mails with the same comment. Is there any way you can remove people from that service? Appreciate it!
Nice post. I learn something totally new and challenging on sites I stumbleupon everyday. It’s always helpful to read articles from other authors and practice something from other sites.
Admiring the commitment you put into your site and detailed information you
provide. It’s nice to come across a blog every once in a while that isn’t the same old rehashed information. Wonderful read!
I’ve bookmarked your site and I’m adding your RSS feeds to my Google account.
I’m not sure exactly why but this blog is loading extremely slow for me.
Is anyone else having this issue or is it a issue on my end?
I’ll check back later on and see if the problem
I’m amazed, I must say. Rarely do I encounter a blog
that’s both educative and amusing, and without
a doubt, you’ve hit the nail on the head. The problem is something
which too few folks are speaking intelligently about.
I am very happy I came across this in my search for something regarding this.
I read this post completely about the resemblance of hottest and earlier technologies, it’s awesome article.
That is really attention-grabbing, You’re an excessively professional blogger.
I have joined your feed and stay up for in quest of more of your magnificent post.
Additionally, I have shared your site in my social networks
I loved as much as you’ll receive carried out right here.
The sketch is attractive, your authored material stylish.
nonetheless, you command get bought an edginess over that you wish be delivering the
following. unwell unquestionably come further formerly again as exactly the same nearly a lot often inside case you
shield this hike.
Your mode of telling all in this post is in fact pleasant, every one can easily
understand it, Thanks a lot.
Hi there, You’ve done a great job. I’ll certainly digg it and personally suggest to my friends.
I’m confident they’ll be benefited from this website.
This post is priceless. Where can I find out more?
Hey this is somewhat of off topic but I was wanting to know if blogs use
WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding expertise so I
wanted to get advice from someone with experience. Any help would be
Hi there, just wanted to say, I loved this blog post.
It was funny. Keep on posting!
I constantly emailed this website post page to all my friends,
for the reason that if like to read it afterward my links will too.
Comments are closed.