Congress passed many different stimulus packages to help stem the flow of the economic fallout from the coronavirus. Among the small business loan relief programs that they devised is the historic stimulus package that was approved back in March, which gives freelancers and gig workers access to $1000 – and it doesn’t need to be paid back.
There are many small business owners that will have been gravely affected by the economic devastation of COVID-19. This is why it’s important to have multiple avenues of financial assistance that can be accessed where and when it’s needed.
From Economic Injury Disaster Loan to $1000 Grant
Small business owners can apply through the Small Business Administration for an Economic Injury Disaster loan, which can be up to $150,000. They must be able to show that they have lost money as a result of the coronavirus, and they also need to know that this loan will need to be paid back at some point.
Within the Economic Injury Disaster Loan program is another provision that is designed to help freelancers and contractors who are under the umbrella of a small business, but technically self-employed. Either they themselves or the company can apply for a $1000 grant, which can be for up to 10 employees, or $10,000. This doesn’t need to be paid back.
If you don’t fall under the umbrella of a company and you’re an independent contractor or a freelancer, you can still apply for and receive the loan. If this is the case, you won’t even need to prove that you’ve been negatively affected by the coronavirus to qualify for the money.
Another way to complement stimulus packages from the government is to apply for short-term or personal loans. Simply search ‘title loans near me’ for local options that are available.
Makes a Big Difference to Freelancers Right Now
Eli, a freelance writer who lives in Brooklyn, New York, says that it is now more difficult to get his articles published. He says that companies are taking on fewer pieces from freelancers, and editors are losing their jobs everywhere.
Eli was told by a cousin about the grant, and at first, he didn’t believe it. However, he still decided to fill out the application form, and within a few days, he had $1000 in his bank account. Blogger Harry Campbell says that he has heard about hundreds of Lyft and Uber drivers who have received the grant.
Campbell says that the application is pretty easy, and right now, with all the uncertainty, $1000 can make a big difference. Interestingly, though, because the grant requires its recipients to fill out a form, many make the wrong impression that it has to be paid back. While you do technically have to apply for a loan to get the grant, you don’t have to accept the loan on top of it.
Once you have been approved, you should see the money in your bank account within a few days.
While $1000 can’t help a freelancer pay the bills for months, it’s a lifeline right now as everyone struggles to grapple with the new economic landscape. For further assistance, consider short-term or personal loans to help you ride the wave until things are a bit more stable again.
