July 3, 2020
In case you missed it. (ICYMI). Self-employed individuals and small businesses are eligible for Economic Injury Disaster Loans.
Economic Injury Disaster Loans This a loan program with a 30-year payback period at 3.75%. There’re two parts to this: (i) A grant of $1,000 per employee up to $10,000. If you’re a one-person operation, you’ll get $1,000 by applying. (ii) In addition, you might be eligible to get a loan up to $150,000, without a “personal guarantee.” You submit the loan application to the Small Business Administration. You don’t have to go through a bank. SBA checks your identity and credit history.
I’m making you aware of opportunities. I’m in no way offering financial for legal advice. I recommend you consult with someone who is knowledgeable to understand the nuances, for example, what you can spend the money on.
Also, there’re lots of resources on the Internet and on YouTube to get additional information.
One thing, in particular, I suggest you discuss with your financial adviser or other professional is how to identify a clear source of future revenue to repay the loan, otherwise, you might end up with an unnecessary debt burden.
Paycheck Protection Program: Legislation is moving through Congress to re-open the Paycheck Protection Program. Keep abreast of the happenings.
Basically, someone who is self-employed can receive approximately the equivalent of 2.5 months of their 2019 net income. For example, if you had “self-employed net income” of $40,000, you can get a loan of $8,333. The loan is comprised of two parts: (i) $6,258 which is a grant; (ii) $2,083 which will have to be paid back unless you use to cover eligible business expenses. If you use the $2,083 to cover those expenses, you do not have to pay it back.
Again, I’m in no way offering financial for legal advice. I’m just making you aware of potential opportunities.