Self Employed? Everything You Need to know about sba disaster loans for covid-19
You guys know I love sharing recipes, DIY projects & my adventures with Tony & Doug. But it’s also really important to me to share real world, authentic content. Whether it’s tips for starting a side hustle, dealing with cyber trolls, or in this case, dealing with COVID-19 from a small business perspective.
I recently had a chat with my friends at YoGov – remember, they’re the ones who helped me get my Real ID quickly and painlessly? I assumed that the loans & assistance I was reading about in the news didn’t apply to me. For reference, I own 3 small businesses under one LLC umbrella. I’m technically set up up as single-member LLC & have been in the process of setting myself up as an S-corp. But I don’t want to bore you with all that jazz.
The important thing is that I found out that if you are a small business or self-employed, you are eligible for 2 1/2 months of reimbursements
The Paycheck Protection Program (PPP) has around $400 billion allocated to it through the recent stimulus package. This money is designed to help small businesses and self-employed folks keep people on payroll, pay rent & stay up to date on operating costs. These loans are forgivable and will be issued by local banks and lenders.
Everything You Need to Know About SBA Disaster Loans for COVID-19
All of this information is coming from the fine folks at YoGov, who have honestly made my life so much easier and reduced a huge weight of stress from my day to day.
They set up a guide to help you as a small businesses or independent contractors during the COVID-19 global pandemic.
I wanted to share this information because it can be really overwhelming being self employed. It’s hard to navigate on a good day. And when things are stressful, income & wages are uncertain & you’re not sure what options you have, knowing you have options makes a huge difference.
Even if you’re not sure if you’re eligible, I recommend looking into it. Because there are so many options and programs opening up daily. If you’re stressed out because of how COVID-19 is affecting your business, there are options & you can get help.
What is the Emergency $10,000 SBA Loan?
Also referred to as the Economic Injury Disaster Loan Emergency Advance, the SBA (small business association) loan advance will provide up the $10,000 of economic relief to businesses that are currently experiencing temporary difficulties.
This loan program is supposed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid.
WHO CAN APPLY?
The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or veterans organizations affected by COVID-19. AKA, if you’re a stay at home blogger like me who thought they were SOL, you’re in luck!
What is the Paycheck Protection Program?
The Paycheck Protection Program is a $349 billion dollar fund that helps small businesses and independent contractors retain jobs and some other expenses. Th fund was created as part of the CARES Act in response to the COVID-19 national emergency.
Under this program:
- Eligible recipients can qualify for a loan up to $2 million determined by 8 weeks of prior average payroll plus an additional 25% of that amount
- Loan payments will be deferred for 6 months
- If you maintain your workforce, SBA will forgive the portion of the loan proceeds that are used to cover the first 8 weeks of payroll and certain other expenses following loan origination
Who Can Apply?
The program is specifically for any small business with less than 500 employees (including sole proprietorships, independent contractors, freelancers and self-employed), as well as private non-profit organizations.
What’s the Deal With Loan Forgiveness?
A loan can be completely forgiven if the funds are used for payroll costs, interest on mortgages, rent or utilities. Loan payments will also be deferred for 6 months. And no collateral or personal guarantees are required. No fees involved.
Forgiveness is based on maintaining or quickly rehiring employees and maintaining salary levels. This loan has a maturity of 2 years and an interest rate of .5%.
How much Am I going to get from the COVID-19 Stimulus?
First of all, confirm that you’ve filed taxes in the US in 2018 or 2019. Then, visit YoGov’s Stimulus Payment Calculator to find out how much you’ll get, when, and how.
How Do I apply for the Disaster Loan?
You can apply through any existing SBA lender or through any federal insured depository institution, federal insured credit union, and Farm Credit System institution that is participating.
If you are thinking about applying for a Disaster Loan YoGov recommends applying as soon as possible. Applications are being submitted in record numbers and are reviewed in the order they are received. You can apply by printing forms or by creating an account and navigating the SBA website (takes about 2-3 hours).
You can also apply for a loan through YoGov. They offer a service that helps you apply for an SBA Disaster Loan. in about 15 minutes. What I love is that they call you (so you’re talking to an actual human). Then, ask for the information & documents they need to submit your loan paperwork.
Not only do they submit everything for you and make sure everything is done properly, they also send loan progress reports and follow ups with the SBA.
EVERYTHING YOU NEED TO KNOW ABOUT YOGOV’S SKIP
All of the government programs are first-come, first-served, and have a funding cap. YoGov has a service called “Skip” that can help you apply effectively and work with you through the entire process.
What they provide:
- $10,000 SBA Loan and EIDL Loan Applications
- Paycheck Protection Program (PPP) Applications
- Personalized Help from a Team of Experts
- Status Updates on your Application
- Information About Every Available Loan or Grant Opportunity
- Peace-of-Mind Throughout the Loan Process
What I really appreciate about the service is that they stay on top of everything for you. If for some reason you aren’t approved for a loan, they look for other options that fit your situation. They’re on the front lines of communication and updates – so they know exactly what options are available and coming soon.
When you book theSBA Loan Concierge, you’ll get a confirmation email and a team member who will follow up with you by phone and text. Satisfaction is guaranteed.
They also offer you a free year of the Skip membership program ($108 value). Basically acting as your personal assistant for all government services. Everything from DBV appointments to quick passport renewals and TSA PreCheck appointments.
You can skip the referral cue by entering my initials as your promo code: EA
Sign Up for Loan Concierge Here
If you’re looking for more information or want daily coronavirus updates sent to your email, you can sign up here. If you’re experiencing issues with your small business due to Covid-19, don’t hesitate to use them as a resource.
Ryder from YoGov also put these videos together with more information!