Crucial Mention: As of April 27, the Small Business Administration has resumed accepting new applications for the Paycheck Protection Program. For the Economic Injury Disaster Loan Advance, the SBA is currently processing existing applications, and may reopen to new applications. We will keep you updated as we have new information.
During this difficult go out, Lyft drivers enjoy a life threatening part, connecting people to crucial characteristics and you may items-such as for example healthcare, as well as treatments. We significantly take pleasure in the benefits on the groups, and also understand that making money is tough right now.
According to the CARES Act, the small Team Management (SBA) authored the fresh software to help with smaller businesses, as well as those who are mind-working, just people or separate contractors. Of many drivers with the Lyft system are mind-employed otherwise own their particular organization and may even meet the requirements.
These SBA apps is actually the brand new but still into the innovation, generally there is a lot we don’t discover the way the applications will work and you may details ents, and certainly will continue to share reputation according to our very own understanding of the fresh applications. Financing are limited, so we was guaranteeing individuals who would like to connect with do so as quickly as possible.
There have been two apps offered which will render dollars features and forgivable loans to help you eligible people. Read on to get more information, and you can in addition to discover advice through the You Chamber out of Trade and Home business Administration.
Economic Injury Crisis Loan Disaster Advance: opportunity for small businesses, including independent contractors and self-employed individuals, to receive a cash loan advance that does not have to be repaid. You can apply online through the SBA here.
Observe that never assume all banking companies / borrowing from the bank unions are participating
What is this method? Small business owners, including independent contractors and self-employed individuals, are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
Simply how much will i discover? According to the SBA, the grants could be up to $10,000, but the actual amount awarded will be determined by the Small Business Administration and could be significantly lower.
How do i incorporate? You can access the grant by applying for a COVID-19 Economic Injury Disaster Loan. The application form is on the SBA’s website here, and should only take 5-10 minutes to complete. There is a check-box on the application where you can indicate that you would like to be considered for the cash advance. You can also find detailed directions from the US Chamber of Commerce here.
When will i located payment? According to the SBA, advance funds will be made available within 3 days of a successful application. However, processing times have been delayed due to the large volume of applications.
Salary Shelter System: in addition to the Economic Injury Disaster Loan Emergency Advance, some drivers may also want to apply for loans through the SBA’s Paycheck Protection Program. This is a new government program so we encourage you to review the conditions of the program in detail. Loan processing times may be very delayed as banks and the government work to meet the overwhelming demand for the program. Note that if you intend to apply to the Paycheck Protection Program, you may contact your local unemployment office to determine whether participation will impact your eligibility for unemployment benefits.
What exactly is this choice? This is a new program from the SBA that payday loans Virginia can provide loans to cover lost earnings for small businesses (including independent contractors) for an 8-week period, and can be forgiven with proof that the loan has been used for payroll costs.
How do i apply? You can apply for the loan through your bank or credit union. The SBA has a tool for finding participating lenders here. You will need to complete the loan application form (your bank may have an online version), and provide documents as proof of your income (the government has not yet finalized the requirements, but it will likely include tax forms such as the 1099-MISC).
Whenever can i pertain? Independent contractors and self-employed individuals can apply beginning April 10 through June 30. There is a cap on the funds available for the loan, so if you choose to apply, you should do so ASAP.
How to get the loan forgiven? Submit a written request to your lender. At least seventy five percent of the loan proceeds must have been spent on qualified payroll expenses in order for the loan to be eligible for forgiveness. Note: The SBA has not yet shared the process for how the loan forgiveness will work for self-employed independent contractors. If the loan is not forgiven, you will have to pay it back over two years at an interest rate of 1%. In addition, if you have received an Economic Injury Disaster Loan Emergency Advance, this amount will be subtracted from the amount forgiven.
You do not have to get or even be approved to possess a loan for the bucks advance
In which should i look for details? You can find more information about the Paycheck Protection Program at the following links: