Private investigators are entitled to a $10,000 grant (or maybe it’s just $1,000), which doesn’t have to be repaid, under the government response to the coronavirus pandemic, writes Simon Crittle.
Like everyone else, private investigators are feeling the pinch since the global shutdown caused by the coronavirus began a few weeks ago.
And as you might have heard, the federal government recently passed the CARES Stimulus bill and is now stepping in with loans and grants to try to slow layoffs and keep the economy afloat.
Millions of Americans will begin receiving checks in mid-April of up to $1,200. The IRS has also delayed the tax filing deadline for this year to July 15. And there’s money for businesses, big and small. Lots of it.
But private investigators and others who don’t fit the mold of a regular employee or business owner are also entitled to some of the cash through a number of new and existing programs.
Under two Small Business Administration (SBA) programs currently receiving applications, independent contractors, sole proprietors and self-employed individuals are eligible.
The two programs are the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL).
Here’s what you need to know:
The PPP provides loans of up to $10 million and is designed to help small businesses with fewer than 500 employees keep their workers on the payroll.
The SBA will forgive loans if all employees are kept on for at least eight weeks and the money is used for payroll, rent, mortgage interest or utilities.
A good place to apply is with your regular bank. Try calling or going online. (The drive-throughs are jammed in case you hadn’t noticed.) You can also apply through any existing SBA 7(a) lender and a number of other places.
Lenders started taking applications April 3 although paperwork was reportedly moving slowly after the SBA system crashed.
However, private eyes who work for themselves, including contractors and self-employed individuals, and others who don’t have a regular job, can apply beginning April 10. Hopefully!
For more information on the PPP check out the Treasury factsheet here.
Just don’t wait too long as the program is capped at, ah, $349 billion. Whoa!
In the meantime, the EIDL program is about to shovel money out the door of Congress to try to keep small businesses and the self-employed off the bread line.
The EIDL is an expansion of the SBA’s existing disaster loan program that is offering $10,000 “advances” to provide relief to businesses that are currently experiencing a loss of revenue.
By simply going online right here, you can access the advance. On the screen you’ll see a box marked “Advance.” Tick that! The money is meant to be deposited directly into your bank account within three days and is due to start flowing this week.
However, since the CARES Act was passed the SBA has issued “guidance” and is now saying you only get $1,000 per employee under the advance. Sole proprietors, says the SBA, will therefore get just $1,000. Hmmm.
That said, under the EIDL, eligible businesses can also borrow up to $2 million with an interest rate of up to 3.75 percent.
If you want a loan for less than $200,000, you aren’t required to submit personal guarantees. The SBA will request collateral if the loan exceeds $25,000, but if you can’t provide collateral you aren’t automatically disqualified.
Super important point here: Unlike the PPP loans the EIDL loans aren’t forgivable. Only the $10,000 advance is free money under the EIDL.
Yes, you can apply for both the PPP and the EIDL but the funds can’t be used for the same purpose.
It’s also worth checking out the SBA Express Business Loan for small businesses which currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly.
And under the SBA Debt Relief program the SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. Microloans granted before September 20, 2020 will also be eligible for the program.
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