COVID-19 RELIEF OPTIONS
FEDERAL PROGRAMS (US Small Business Administration)
SBA Economic Injury Disaster Loan a/k/a EIDL
- 10-year Federal loan with interest rate of 3.75% (2.75% for not-for-profits).
- Borrowers can receive a $10,000 emergency cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue losses.
- Handled directly and exclusively by the SBA
- Help line 800-659-2955 8 AM-8 PM
Apply here: https://www.sba.gov/page/disaster-loan-applications#section-header-0
SBA Paycheck Protection Program (PPP)
- This loan has a maturity of 2 years and an interest rate of 1%.
- No personal guarantee or collateral is required for the loan.
- The loan amount you can expect to be granted is 2.5 times your average monthly payroll, calculated on a 12-month period (year 2019 or the 12 months preceding COVID impact).
- Application via your bank. You need a business bank account and online access to it. And the bank's underwriter will determine final loan amount. Important to know: program rules are paid out by the SBA, and the banks add their own conditions (which may or may not be legal, at this point it's still a shitshow)
Click on bank name for Chase, Citibank or Bank of America applications or Find a PPP lender on the SBA website.
- The lenders are expected to defer fees, principal and interest for no less than six months and no more than one year.
- Loan forgiveness: The amount spent on payroll costs (excluding costs for any compensation above $100,000 annually), mortgage interest, rent payments and utility payments can be combined and that portion of the loan will be forgiven. At least 75% of the forgiven amount must have been used for payroll. As of now the spending considered for forgiveness will be in 2-month period preceding 6/30/20 (expect that to change, if businesses closed by mandate are not allowed to reopen by May 1st).
Full details SBA website HERE.
This CPA has a video with great instructions and insight.
NYC PROGRAMS
Employee Retention Program (closed as of 4/3/20)
Small Business Continuity Loan (Suspended as of 4/7/20)
- Interest-free loan up to $75K.
- Must be in business 2 years
- 1 to 99 employees
- Requires to show revenue for 2 months of 2020 affected by COVID and same 2 months in 2019 + official proof of yearly revenue for 2019.
As of now the NYC Small Business Services office is directed people to the SBA's relief options. Keep checking their page for updates and resources.
MUSICARES / GRAMMY FOUNDATION
For performing artists who can show cancelled gigs and loss of income.
Application here
UNEMPLOYMENT
Now accepting claims from self-employed individuals. Also PUA from the Federal Govt (see below) $600/week for up to 13 weeks is added to the weekly benefits you are eligible for (paid separately).
Below is some visual guidance I found helpful.
Steps for self-employed individuals: https://www.labor.ny.gov/ui/pdfs/self-employed-ui-guide.pdf
Relief for workers affected by COVID-19: https://www.labor.ny.gov/ui/pdfs/cares-act-need-to-know-flowchart.pdf
PUA: Pandemic Unemployement Insurance FAQs click HERE.
STIMULUS CHECK
$1200 per adult +$500 per child under 17 years old. If you have filed your personal tax return for 2018 or 2019 no action needed.
Friday, April 10, 2020 at 05:38PM | Share Article 
