Under the CARES Act passed on March 27, 2020, independent contractors, gig workers, and freelancers affected by the coronavirus crisis are eligible to receive a government grant of $1,000. The SBA sometimes refers to these grants as “advances,” but you are not required to repay this money to the government.
The application process involves filling out a simple SBA form requesting an Economic Injury Disaster Recovery Loan (EIDL), which provides for the advance even if the loan is not granted. This is different than the PPP loan that small businesses are utilizing.
Initially, $10 billion was allocated by the government for these grants, but due to the overwhelming amount of applications, the SBA suspended accepting new applications in mid-April 2020 due to lapse in appropriations for the grants. But now the SBA is lifting the suspension because legislation passed on April 23, 2020, allocated another $60 billion for EIDL and grants thereunder.
In addition to the entities that are already eligible for SBA disaster loans and grants, eligibility was expanded to include:
You must have been in business as of January 31, 2020. Expanded eligibility criteria and the grants are only available until December 31, 2020.
Apply at sba.gov/funding-programs/disaster-assistance. The application can seem daunting, but we can help clear it up and help you to know if this is the right program for you to use.
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*This information is provided for information purposes only, and should not be construed as legal advice on any subject matter. You should not act or refrain from acting on the basis of any content included herein without seeking legal or other professional advice from Marvel Law.
Source Used:
Harroch, Richard. “How To Get $1,000 If You Are A Freelancer, Gig Worker, Or Independent Contractor.” Forbes, Forbes Magazine, 24 Apr. 2020, www.forbes.com/sites/allbusiness/2020/04/24/how-to-get-1000-if-you-are-a-freelancer-gig-worker-or-independent-contractor/?fbclid=IwAR3-pRzF7ySF9FIOTEryQCLzBoH8SmxjQ2RMcQdhqd-yBanDACGQCyi0sDA.
