As all of us continue to cope with the realities of social distancing and the closure of major institutions due to the COVID-19 crisis, there is hope through the recently passed CARES Act.
Through this act, the federal government has included financial assistance to small businesses, sole proprietors, self-employed individuals and independent contractors, specifically in a provision called the “Paycheck Protection Program” which is essentially a small business loan and loan forgiveness program.
Many Society members and the clients we serve may qualify under the guidelines, however, financial institutions are still learning more about how this program will be implemented. For instance, the guidance is not clear on how people who don’t receive a traditional paycheck would provide salary and wage verification in the loan application or proof of payments to oneself during the loan repayment period. The rules are clearer for “gig” workers who receive a 1099 from one entity (from Uber or Lyft, for instance) and could apply for unemployment the same as a W-2 worker would.
Important dates to consider:
April 3 – applications open for small businesses (including non-profit organizations) and sole proprietors
April 10 – applications open for independent contractors and self-employed individuals.
We wanted to share this basic information below with direct links. While the Society cannot offer financial or legal advice, we can share these resources with you.
Information about who qualifies for what:
Information on loan terms and a sample application.
We wish everyone good health and best wishes for continued success.