How to Apply for a $ 1,000 Grant If You Are a Freelancer or Large Economy Worker
In March, Congress passed a stimulus package – the CARES Act – in response to the COVID-19 outbreak. The landmark bill contains provisions, including the Payroll Protection Program (PPP) and Disaster Injury Loans (EIDL), which have become a lifeline for small businesses struggling with loss of income in the face of compulsory shutdowns. The Small Business Administration’s EIDL program offers support to affected companies, but many fail to realize that individuals – freelancers, gig economy workers, and independent contractors – are also eligible for its loans.
Under the program, small businesses can apply for up to $ 10,000 ($ 1,000 per employee) and must not be refunded. According to the US Treasury Department , the following small businesses can apply:
This program is for any small business with fewer than 500 employees (including sole proprietors, independent contractors, and self-employed persons), private non-profit organizations, or 501 (c) (19) veteran organizations affected by COVID-19.
To apply for your share, complete this Disaster Loan Assistance Application . Small business administration relies on “self-certification” with the penalty for perjury. (Be honest in your statement.)
To get started, choose the third option – a sole proprietor or an independent contractor. You will also need to prove your eligibility by reviewing tax-exempt activities.
You will then provide information about your company, including name, address, type of organization, date of establishment, and number of employees. You must also include your business income, expenses and other disaster-related income, if any.
You must enter your personal details, verify your criminal record and enter your bank details for direct deposit. On the last page, check the box that says you want to be considered for up to $ 10,000 in advance.
According to the US Treasury Department’s website, you must receive a $ 1,000 advance “within days of submitting your application.” But as reported by CNBC , there have been some funding delays.
You will then receive an email from the Small Business Administration inviting you to create an SBA Portal Account for a Disaster Injury Loan. The portal may indicate that it is pending approval for a low interest business loan that you do not need to accept.
If you have questions, you can contact the Small Business Administration at 800-659-2955 or email [email protected].