5 things self-employed should know about CARES act

UPDATE: New CARES Stimulus Signed into Law

Aaron Meyer

24 Apr
S-Corp Self-Employed

As many are reporting both the US Senate and House of Representatives have agreed and signed into law additional funding ($484 billion) to combat the economic downturn due to the Covid-19 public health crisis. 

This new stimulus package is directed to address the shortfall in funds from the original CARES Act with regard specifically to PPP (Paycheck Protection Program) and EIDL (Economic Injury Disaster Loans) advances. What does this mean for you as a self-employed or small business owner? 

The bill pumps an additional $310 billion into the PPP for lenders to issue to small businesses; the same conditions apply as with the previous legislation so for more details see our recent webinar and our CARES Act program FAQ.

There will also be $60 billion for the EIDL advances available from the Small Business Administration to issue direct loans/grants to businesses with less than 500 employees; the application process is currently closed but some in Congress are stating a re-open date of Monday, April 27th.  

It is highly likely that these funds will be allocated very quickly once made available. The amounts are about half of what was originally issued earlier this month and with awareness and demand for the PPP and EIDL only getting higher the money may be gone within days.  

You should contact a lender TODAY to get your name and application in the queue. We also recommend bookmarking the SBA.gov website and checking it regularly for the EIDL application to return. 

 

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