This is the best time to live in a low income community and get paid for it. The government passed an EIDL Economic Injury Disaster Loan Program for business owners, sole proprietors and independent contractors. The COVID-19 bill gives business owners a loan that they don’t have to pay back. So it’s basically free money for your business. The SBA will pay you a $1,000 per employee, up to $10,000. So to get the whole $10,000 you need 10 employees. Moreover, you can receive another loan of $5,000 that you also don’t have to pay back.
To apply for either non-repayable loans, small businesses, sole proprietors and independent contractors must first apply for the EIDL or Economic Injury Disaster Loan program, which allows loans up to $150,000 with a 3.75% interest rate. After submitting your application, you’ll receive an email asking if you’d like to apply for the Targeted EIDL Advance or Supplemental Targeted EIDL program. You don’t need to accept the EIDL loan or even be approved for it to get one or both of the low-income targeted loans.
The $10,000 EIDL Targeted Advance Loan:
- Low income community
2. Lost a 30% reduction in revenue during an eight-week period starting on March 2, 2020, or later.
3. Has 300 or fewer employees
The $5,000 EIDL supplemental Targeted Loan:
- Lost 50% or more loss in revenue, during an eight-week period starting on March 2, 2020, or later.
- Have less than 10 employees