Covid-19 resources for small business owners and sole proprietors
There are two Covid-19 related resources for sole proprietors and small businesses that can be applied for now. This comes after the CARE Act which was past a couple weeks ago, the Treasury has issued new guidance and banks are only now implementing some of these programs, although a bit overwhelmed at the moment, it’s prudent to keep trying. Here is what you can take advantage of now:
The Economic Injury Disaster Loan is an advance of $10,000 that can be applied for now. You will need profit and loss info for the last 12 months ending January 31, 2020. You can apply via the SBA website.
The Paycheck Protection Program is a low-cost loan for up to 2.5x a month of payroll costs. This loan is forgiven if certain conditions are met. This must be applied through a SBA participating bank, ie. Union, BofA, Wells, and others. Business owners with employees can apply now while sole-proprietors can apply on April 10th, according to the latest timeline. You can access the application here, although I suggest waiting until online forms become available. For more information click here.
Unemployment Insurance Benefits are now available for sole proprietors, according to new guidance set out by the DOL, but it’s up to the state to adopt the rule. Beyond the normal state cap of $450 a week, the federal government will pay out an additional $600 a week. California is a participating state although they haven’t updated their website that explains this eligibility. To read more on this, click here.
Mortgages and student loans may be eligible for 60-90 day forbearance, where student loans wouldn’t be accumulating interest charges during that that time. Contact your loan server and ask about Covid-19 forbearance eligibility.
Airbnb property owners may be eligible for funds from Airbnb if impacted by Covid-19. (Link)
At Eureka Wealth Management, I’m available to help you research your options through this unprecedented time. I also do financial planning and investment management. Call for a free initial consultation at 760-537-0791 or book an online meeting at eurekawealthmanagement.com.
Consult your tax advisor regarding any tax questions.