COVID-19
The SBA announced that it was again opening up its Economic Injury Disaster Loan (EIDL) grant and loan program on June 15th, 2020. This is great news for freelancers, contractors and gig workers, because they are eligible to receive a $1,000 grant that does not have to be repaid.
Small businesses and agricultural businesses also may apply for the grant, equal to $1,000 per employee of the business up to a maximum of $10,000.
There is some uncertainty as to the amount available, but a loan for favorable terms from the SBA up to $150,000 or $2 million may also be available.
Under the CARES Act passed on March 27, 2020, independent contractors, gig workers, and freelancers affected by the coronavirus crisis are eligible to receive the grant. 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, which provides for the advance even if the loan is not granted.
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 a lapse in appropriations for the grants. But now the SBA has lifted the suspension because of legislation passed on April 24, 2020, that allocated another $60 billion for EIDL and grants thereunder.