Tuesday, July 7, 2020

Freelancers Are Eligible for $1,000 Federal Grant

Freelancers, gig workers (e.g. Uber drivers), sole proprietors, even professionals like doctors and lawyers can receive an extra $1,000 in 15 minutes it takes to complete a simple online application. It's part of the SBA’s Economic Injury Disaster Loan Program.

Unfortunately, many people who need this money most don’t even know there is an extra free $1,000 for them. That’s because it’s “hidden” within the aforementioned SBA's low-interest “disaster loan” application. You can still get the free $1,000 even if you don’t want the cheap federal loan.

Here is what this is all about. Small business owners with losses due to covid can apply with the Small Business Administration for an Economic Injury Disaster Loan of up to $150,000.  There is an option to collect a $1,000 grant per employee for up to 10 employees, or $10,000. This money is yours to keep and doesn't need to be repaid.

You are still eligible even if you are a freelancer, independent contractor or sole proprietor without any employees, In that case, you just get $1,000 grant for yourself. You don’t even have to prove that you’ve been personally impacted by the crisis to qualify.

Even though you technically have to apply for the loan to get the grant, you don’t have to accept the loan. Once you get approved for it, you should automatically receive the $1,000 grant in your bank account. Just don’t accept the loan if you don't want it.  Make sure to check the box under “additional information” that says, “I would like to be considered for an advance up to $10,000.”