Thread: Self-Employed Artists, the EIDLs, and the $10,000 grant
So the bill making its way through Congress right now seems like it is taking self employed workers into account (such as independent artists who work conventions) so let’s take a look at some of the provisions.
So the bill making its way through Congress right now seems like it is taking self employed workers into account (such as independent artists who work conventions) so let’s take a look at some of the provisions.
Hidden in the Economic Injury Disaster Loan section is a $10k Grant available to small businesses, non profits, sole proprietors, independent contractors, etc. if you opened your business before Jan 31 2020, then you may be eligible for the grant. It uses your credit score.
Up to $10k given for payroll and operating expenses. Doesn’t need to be repaid. Proceeds can be used for payroll, rent/mortgage (presumably business location), repaying obligations that cannot be met due to loss of revenue, increased costs from supply chain disruptions.
The Small Business Loan Program Account (CARES ACT) offers payroll protection and other loans to small businesses, which in the current climate it is probably best not to take on a debt if you are an independent artist... BUT there are some forgiveness provisions.
Forgivable expenses include: payroll costs, mortgage interest, rent and lease payments, utility payments, (for these, the agreement had to be signed before Feb 15, 2020.) the limit for payroll expense forgiveness is up to $100k per employee.
Interestingly, the language for defining payroll costs specifically includes self employed people and independent contractors, as long as they are not more than $100k a year. This should cover most artists affected by convention interruptions.
Now the next question is how to access these programs... first we must wait until the bill passes then you locate a bank near you that does SBA backed loans. sba.gov/lendermatch
Call them and ask for a meeting with whoever handles the SBA loans. In your meeting tell them you want to apply for the grant and ask them about your individual situation WRT payroll expenses, rent/mortgage, utilities and what you can forgive from a loan. They are your resource.
I bank with Chase so that’s who I’m going to end up talking to soon as the bill passes. If it doesn’t pass, then back to the drawing board... but it looks like for those of us self-employed, we can maybe breathe a bit easier that we haven’t been forgotten.
Source is from r/smallbusiness, you can read the whole write up here: reddit.com/r/smallbusines…
