How to get CARES ACT MONEY as independent contractors/small business owners
This is a time of a lot of uncertainty, fear and sacrifice. While the CARES Act can’t solve everything it is offering a financial lifeline for small businesss and consultants/independent contractors yet a lot of black-owned businesses and independent contractors are not taking advantage of this financial lifeline. That needs to change and ASAP!
Details on the SBA programs funded by the CARES Act are here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
🌟I am including the contact info below on a black-owned accounting firm that can help you get these dollars! Salome Tinker is awesome! See below for info on the Paycheck Protection Program and the Economic Impact Disaster Loan program.
ABOUT THE PAYCHECK PROTECTION PROGRAM
Are you an independent contractor of a small business owner who can show a profit on their tax forms? If so, Did you know you can apply and get a Paycheck Protection Program loan (which is really a grant if you are an independent contractor).
For consultants and independent contractors - look at your Schedule C, go to Line 31 and if you have an amount there, divide it by 12 and then multiply it by 2.5. That is the maximum amount of the Paycheck Protection Program that you qualify for. If you claimed a loss on your business you don't qualify for the Paycheck Protection Program. Getting unemployment (or were until the Senate dropped the ball on the $600 enhancement) and now thinking about getting PPP instead before the August 8th deadline? Get on this ASAP!
For independent contractors and consultants without employees, PPP is basically a grant for 8 weeks. If the loan isn't forgiven it's at only 1% interest. If you have employees the PPP can also be forgiven but you have to follow some rules.
ABOUT THE ECONOMIC IMPACT DISASTER LOAN
Also, the Economic Impact Disaster Loan from the SBA is another great funding source based on the Gross Receipts of your 2019 taxes for independent contractors (slightly difference process for LLCs and small business owners). The loan is 3.75% for businesses, 2.75% for nonprofits with payments waived for the first year, and the payments spread out over 30 years.
For example, a $23,500 loan comes out to $115/month (after the year of waived payments). The money can be in your bank account in 36 hours. Before they ran out of grant money, each loan automatically came with a grant of $1,000 - $10,000 regardless if you took the loan or not. This recession is affecting a lot of black-owned small businesses and self-employed, yet our people aren't taking advantage of the funding opportunities in the CARES Act. If you are keeping your business afloat with your credit cards, why?! You can use the EIDL to pay rent, utilities, business expenses, and short-term debt (who's carrying some debt on their cards now?), see the link for a complete list.
💵💵💵💵 NEED HELP APPLYING FOR PPP OR THE EIDL? This black-owned accounting firm is available to help for a small fee, they have helped and advised a lot of Ward 8 small businesses including mine. Check them out:
Salome J. Tinker, CPA, CGMA
Chief Problem Solver
TSC Enterprise, LLC
5211 Auth Road, Suite 100
Suitland, MD 20746
(240) 455-7848 extension 411
Federal: WOSB, SDVOSB, and 8(a) Participant
State: MD DBE/MBE
County: Prince Georges CBE
I hope this helped! Kisses!
-The Advoc8te