This is for small business owners and independent contractors

[matt819]

The business and entrepreneur forum doesn't seem to get much activity, so I'm posting here.

You all probably know this, but there's no harm in mentioning it for those who may not have.

There are two programs that are at the moment dispensing money under the CARES Act. (I'm tempted to say reportedly or supposedly or allegedly, but I'm going to be optimistic and just say dispensing).

EIDL - Economic Impact Disaster Loan. This is $10,000. It's a loan, I think, but there's a checkbox on the application asking if you would like to be considered for a grant. (Of course. Duh.) Here's that link: https://covid19relief.sba.gov/#/

PPP - Paycheck Protection Program. This is for small businesses (under 500 employees - and don't get me started on the definition of small). So if it's you and one more person, you're a small business and can apply for this PPP. Take your total payroll from 2/15/19 to 2/15/20, divide it by 12, and multiply by 2.5. This is what you're applying for. It is primarily intended for payroll, but can also be used for a limited few other things. As long as 75% of the money goes to payroll, the loan becomes a grant (though I'm not sure if the entire amount is forgiven as a loan or just the amount going to payroll). You'll need W2 or other payroll documentation - I submitted a printout of my draws for the year. This just opened today, and i've submitted mine to my bank, which has my SBA loan. I don't know how to apply if you don't have an SBA loan. Here's a link from inc.com: https://www.inc.com/kimberly-weisul/sba-payroll-protection-loan-application.html.

PPP - Payroll Protection for independent contractors. This is for independent contractors. I assume it's basically the same as the one for businesses, but for individual business people. Maybe sole consultants, people who get paid via 1099s, maybe also gig workers? This opens on April 10, so there's time to do some homework if this applies to you. BTW, be sure to tell your kids about this one if you think it applies to them, as it does to one of my kids.

SBA Loans - If you have an SBA loan, your bank will automatically submit the paperwork to SBA, which will pay principal and interest from April - September. This is fantastic, and you don't have to do anything (though don't forget to cancel any automatic loan payments for this period).

Bridge Loan - There's also an SBA Emergency Bridge Loan, but I don't think the details have been worked out on this one. It's a $25,000 loan. I'm going to look for more info about this over the weekend.

Finally, I have no idea when any of the money being applied for will be available or the likelihood of any one of us getting this money. I'm going to remain hopeful, but I can't help but wonder whether the huge "small" businesses will get priority.

Good luck all. All I can say is that this sucks and (notwithstanding my hope that the money requested will come through) I genuinely fear what the aftermath of this may look like in the US.

[MontanaMama]

1. Bookmarked.

I applied for the PPP two days ago. Our back is being very helpful but I was also cautioned that the huge small businesses who are politically connected will get the first cracks at this money. I am hopeful that the system will be fair. I only have 8 employees but I committed to them that they’d be paid if we have to close.

[crickets]

2. K&R for visibility.

[matt819]

3. Update on experience with the various government programs

Here's my update on "progress" with the various government funding programs. It would be interesting to hear from others.

1. EIDL: As noted in the OP, I applied for the EIDL on 31 March. No acknowledgment, no funding.

2. PPP - Paycheck Protection Program: Also applied for the Paycheck Protection Program on 3 April. Dropped it off at the bank that has my SBA loan. Got a call from the bank about an hour after asking for supporting documentation for my payroll figure. I didn't see that requirement, but it makes sense. I don't do W2s, so I printed out my Owner's Draw account for the required period, and that became my payroll for the two of us. Got another call on Monday, 6 April asking me to revise the application. The application asks you to calculate your funding request by multiplying your payroll times 2.5 and then adding 10,000 for the EIDL. Which I did. The bank called and asked me to take out the EIDL. I told them that this is what the form asked for. But they said to take it out. That makes sense, of course, since I'd applied separately for that amount, but that's what the form asked for, so I provided it. In any case, I submitted the revised form. When I asked what happens next, here's what I got: "It goes to our internal people for review and then we submit to SBA. Once approved our people prepare loan docs and we have you sign and give you the funds." They won't provide a timeline. So no money there either.

3. PPP - Payroll Protection for independent contractors: I can't find any information online about this program. Many websites telling us it's out there, but no details on where to apply, etc.

4. Bridge Loan: Haven't pursued this yet.

5. $1,200 payments: Nothing yet.

6. Deferred payments: Arranged with another of my banks (I have two) to defer payments on credit card and car loans, and home/car insurance.

[Wounded Bear]

4. K & R...for visibility...nt