Like many around the country, contractors are getting impacted by the coronavirus outbreak. We’re here to help you navigate some simple steps to get you back to doing what you do best.
The vast majority of JobNimbus customers will likely qualify for the new Payroll Protection Program, passed by US Congress as part of the CARES Act last week. As long as your company meets a few basic requirements, it should be eligible for at least a low-interest loan, but in many cases, the equivalent of a grant from the US government. That’s free money you can use to get back on your feet.
Help has arrived, and it is time to be proactive. The United States Business Administration has loans for Federal Disasters due the Coronavirus (COVID-19). There are also some useful places for free business advice and explanations for common questions about the relief package.
Below is a description of the program and how it applies to you in the form of common questions to help you access the money.
Am I eligible?
Small business owners in all states are eligible to apply for an Economic Injury Disaster Loan. The SBA’s (U.S. Small Business Administration) loan program provides businesses with working capital of up to 2 million. There is also an advance of $10,000 a few days after applying.
How do I apply?
Small businesses and sole proprietorships may apply as soon as April 3rd, whereas independent contractors and self-employed individuals may apply starting April 10th. We recommend that you apply as soon as possible because the money allocated for this program ($349 billion) will be distributed on a first-come, first-serve basis.
You may start an application here and call them at 1-800-659-2955.
You may also apply through your current bank, credit union, or other SBA-approved financial institution. Check to confirm whether a bank is participating in the CARES Act program beforehand. If you don’t belong to a specific bank, check if a bank is accepting only current banking customers or anyone.
What should I do to prepare?
First, make sure you understand the program. You can view the Coronavirus Emergency Loans checklist that The U.S. Chamber of Commerce put together to learn more about CARES Act SBA 7(a) loans. Treasury also issued a set of FAQs about the Paycheck Protection Program (PPP). Second, have your documents ready. Below are some forms that you most likely will require for application:
- SBA Borrower PPP Form
- Payroll tax returns
- Calculations of payroll costs and the total number of employees (FTEs)
- Calculation showing reductions to payroll cost (anything above $100,000/yr per employee)
- Documentation for payroll costs and rent, leases, utilities, and interest on a mortgage
How long does it take to get funds?
According to the SBA’s site, three days of a successful application.
What are the terms?
All loans will have an interest rate of .5% and a maturity of 2 years. Terms will be the same for all borrowers: no collateral or personal guarantees, no payment for six months and no fees paid by the borrower.
Where can I learn more about these funds and how they help small businesses and families?
If you would like to dig even deeper, there are details on Coronavirus Aid from Congress.
Is there anywhere I can go to get business advice?
Score has mentors that offer free personalized assistance to help with the current crisis to help your business. Score is sponsored by the SBA who is offering loans.
Anything else I should be aware of?
Google has some upcoming ad credits to alleviate costs. This will help you to market to your customers. Google is giving small businesses $340 million in ad credits.