Financial Aid Available
Things have been moving quickly after the Coronavirus Stimulus Package was announced and there are more resources available every day. As of April 3, here are the financial resources available to…
Everyone
Tax Payment Date Extended
The filing date and the payment date has been extended to July 15, 2020. Some states have also extended their tax deadline so check with your state IRS department.
Coronavirus Stimulus
Payments up to $1,200 per individual and $500 per child will be directly deposited or mailed to you starting in April.
Unemployment Insurance
Unemployment is now available to part-time employees, self-employed folks, and independent contractors. Apply with your state.
Student Loans
The interest rate for all federal student loans has dropped to 0%. Payment can also be deferred for 6 months. I recommend paying your student loans, as this will allow you to pay-off your debt faster since 100% of your payment will go toward the principal, not interest. Contact your student loan provider.
Skip a payment
Many credit card companies and financial institutions will allow you to skip a payment. If you can afford the payment, I recommend making it so you’re not drawing out your debt balance. You will also want to check that your credit score will not be negatively affected if you skip a payment.
Small Businesses
SBA Disaster Loan/Economic Injury Disaster Loan
Amount: loan up to $2M. Term up to 30 years. Interest rate of 3.75%.
*This is getting confused as the “$10k emergency grant.” You have the option to receive a $10,000 advance on the loan, which will be paid within 3 days. If you do not get approved for the loan, you could still get the advance. However, if you’re approved for the loan, you could be on the hook for it.
Requirements: < 500 employees, economic impact due to COVID-19, credit history, ability to repay, collateral required for loans > $25,000.
Apply at: www.sba.gov
Due: 12/21
This fund has been depleted as of April 20.
Paycheck Protection Program
Amount: loan up to 2.5 times your average monthly payroll (up to $10M) to pay for payroll, benefits, mortgage interest, rent, and utilities. Loan will be forgiven if payroll is maintained through June 30, 2020. Otherwise, interest rate < 4% and term up to 10 years.
Requirements: < 500 employees. Sole-proprietors, self-employed folks, independent contractors, limited partnerships, and corporations are eligible. If you do have not employees, you will need to show your income and agree in good faith to stay in business through June and use the funds toward mortgage interest, rent, and utilities.
Apply at: a SBA preferred lender starting April 3
This fund was reopened on April 27.
Self-employed Tax Credit
If you are a business owner and are caring for a family member that has COVID-19 or you no longer have childcare because of the pandemic, you are eligible for a tax credit at the end of the year. The credit amounts to 67% of your average, daily self-employment income. Be sure to remind your accountant at the end of the year.
State Grants
Many states are offering additional relief funds so check with your state’s economic development department.
Other Resources
Google ads credit
Funds for targeted industries and specific states
If your business needs help getting its bookkeeping completed or financial statements in order, contact me. Let me know if you have any questions!