Blessings............ Wynn
$10,000 Grant to Freelancers and Independent Contractors
Under the CARES Act, independent contractors and freelancers are eligible to receive a government grant of up to $10,000. You are not required to repay this money to the government. The application process involves filling out an SBA form, requesting an Economic Injury Disaster Recovery Loan, which provides for a quick advance of up to $10,000 even if the loan is not granted.
Here are the particular steps to take, with advice on how to fill out the application:
Go to covid19relief.sba.gov/#/.
On the first question, check the second box as you are applying as an independent contractor or sole proprietorship.
You must add your social security number if you are applying as an individual independent contractor.
The form will ask you for the gross revenues for the last 12 months for your independent contractor business and the “cost of goods sold.” You can estimate this based on what happened in 2019. Cost of goods sold means the expenses of operating as a freelancer or independent contractor.
Where it asks for “Owner” put your name and “100” percent owner.
It will ask for the date the business was established. This is the date you started doing freelance or independent contractor work. Just estimate if you don’t have the exact date.
The form will ask for the bank account you want the grant money wired to. You need the name of your bank, the account number (the middle number at the bottom of your checks), and the routing number (the number at the bottom left of your checks).
For your business phone number, it’s ok to give your cell number.
On the question “Is your business owned by a business entity”—the answer is no since you are an individual owner.
When the form asks for your business name, just enter your individual name if you don’t have a business name.
You can ignore the question “If anyone assisted you in completing this application …” unless you have actually gotten help.
The form should take about 15 minutes to fill out. The SBA supposedly will act quickly in making the grants. It’s not clear how the SBA will determine the exact amount to be granted.
Good luck!
