On June 15, the SBA announced that it was again opening its Economic Injury Disaster Loan (EIDL) grant and loan programs. This means that independent subcontractors, freelancers, and gig workers are eligible to receive a $1,000 grant that does not have to be repaid.
Small business owners also may apply for the grant, equal to $1,000 per employee and up to a maximum of $10,000.
The application process involves filling out a simple SBA form requesting an Economic Injury Disaster Recovery Loan, which provides for the advance even if the Loan is not granted.
The government initially allocated this program $10 billion. However, due to the overwhelming amount of applications, the SBA suspended accepting new applications in mid-April 2020 due to the lapse in appropriations for the grants. But now the SBA lifted the suspension because of legislation passed on April 24, 2020, that allocated another $60 billion for EIDL and grants.
Where do I apply Online for this Loan?
The application should be found at covid19relief.sba.gov/#/. Background information from the SBA can be found at www.sba.gov/disaster-assistance/coronavirus-covid-19.
Here are some tips for completing this SBA Application:
1. On the first question, check the type of entity. If you are applying as a business, independent contractor, or sole proprietorship. If you are applying as Independent Subcontractor, you must add your Social Security Number.
2. The form will ask you for the gross revenue for the last 12 months. You can use the gross revenue or collections for the year 2019. Cost of goods sold means the expenses incurred in the process of providing your product or service. You will have to use the same period you use for the gross revenue.
3. The form will ask for the bank account to which you want the grant money direct deposited. You will need the name of your bank, the routing and account numbers.
4. The form will ask for the date of the business was established. That is the date you started business operations. Just make sure it was before January 31, 2020.
5. Make sure to check the box that says you want to apply for the $10,000 grant (although it will only be $1,000 for each employee or Independent Subcontractor).
The form should take about 15 minutes to fill out. After it is completed and submitted, the SBA will give you a confirmation number; you will need that number for any follow-up on this application.
If you need any assistance with the preparation or filing of this application, please call me at my office at (305) 443-1068.
We keep our Promise.
The Julio & Staff Members.
Written by: Julio Jiron, CPA
