Great financial relief opportunity is available for Independent Contractors and gig workers as well. The normal terms of SBA have been expanded to offer help to the 1099 world where some of our communities most loved services exist. Uber Drivers, Painter’s, Handymen, Yoga Instructors, Tutors, Real Estate Agents, AirBnB Operators, and virtually any self employed roll you can imagine that has had their economic spigot cut off, can now access the funds thru the SBA Program. Full Program Notes found here. We are a small property consulting business, not a CPA or Attorney. But we are working to share this information quickly for the benefit of our partnerships and communities.
Here are some key take aways for independent contractors and gig economy workers.
- businesses, nonprofit organizations, and veterans’ organizations that employ no more than the greater of either 500 employees or the size standard established by the Small Business Administration (SBA) for particular industries;
- sole proprietors, independent contractors and “eligible self-employed individuals” as defined in the Families First Coronavirus Response Act
- an “eligible self-employed individual” is an individual who regularly carries on any trade or business and would be entitled to receive paid leave if the individual were an employee of an employer; and
- certain businesses with more than one physical location that are Food and Accommodations businesses, as classified in the NAICS with a code beginning with 72, and employ no more than 500 employees per physical location.
The local banks are only facilitators in the program. The loan is 100% backed by Federal guarantee. Credit scores are not a factor. And 100% of approved amounts, can be converted to a grant and forgiven under the program.
Start by contacting you bank and letting them know you will be accessing the needed relief grant and to direct you to the person who handles SBA processing. Then get your Quarter 1 financial records together.
How much you normally make in income as self employed. What key expenses you have on books that you need to maintain. Take your best quarterly projection. Multiply that by 4. Divide that number by 52. Times that number by 8. And put a 2.5X multiple to that, and that should be your targeted request.
Honey Bee Dallas will be updating this info as it comes. They are expecting up to 30 days before all the details are ironed out to turn the spigot on thru SBA and banks.
We will also be publishing a list of Banks within the Dallas/Fort Worth Community who are doing a good job for the community in facilitating this program, as a resource to your business and well being.
God Bless America, God Bless Texas, God Bless our Community.
We will survive, and God-willing We The People will thrive.
Honey Bee Dallas