TLDR; If you have business income, go apply now. You will get up to $10,000 that will not have to be repaid.
COVID-19 has quickly brought on unprecedented changes in our way of life. To help small businesses like ours survive the coming tough times, the US Federal Government has made a stimulus package available which offers solopreneurs and small businesses a SBA loan advance of up to $10,000 that does not need to be repaid.
Here’s a conversation I recorded tonight with my accountant, Joanie Gable.
The SBA website says…
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000… Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
You can apply for this loan advance whether you have a business entity like a corporation or LLC, or even if you’re a sole proprietor without any business entity at all.
The loan application is quick. You’ll need the following information to complete it:
- Your EIN or SSN
- Gross Revenues for the 12 Months Prior to the Date of the Disaster (January 31, 2020)
- Cost of Goods Sold for the 12 Months Prior to the Date of the Disaster (January 31, 2020)
- Note: your COGS can include hosting, software licenses, etc. that you use to create the things you sell but not expenses like gas, meals, internet or power.
- Business Activity… this can be tricky. For most WordPress folks working with clients, you’ll probably want to choose Business Services and then None of the Below
The questions are simple. The government is expediting dispersal. The application even includes your bank account and routing number. Funds will appear in your account 3 days after approval.
Listen to the conversation in the video above between me and my accountant where some of the details are discussed. If you’re have a business, you should apply.
For ongoing accounting advice, join the Accounting for Profits Facebook group, where my accountant will be sharing thoughts and strategies for managing your money through this crisis.