Drivers Is Entitled to Small business Support

Drivers Is Entitled to Small business Support

Essential Note: 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 challenging day, Lyft people play a serious role, hooking up visitors to extremely important characteristics and you can services and products-such health care, as well as drug. I deeply enjoy their contributions towards communities, while having remember that making money is generally difficult immediately.

According to the CARES Act, the tiny Providers Administration (SBA) authored the fresh new apps to support small businesses, including those who are worry about-functioning, best owners otherwise independent designers. Of many drivers with the Lyft system are thinking-functioning otherwise own their unique company and may qualify.

This type of SBA programs are the newest but still when you look at the creativity, so there is much we do not discover how the applications work and you will facts ents, and will always share standing considering the knowledge of the newest applications. Fund try restricted, so we is promising individuals who wants to apply at get it done as soon as possible.

There are two programs readily available that’ll offer dollars offers and forgivable loans so you’re able to eligible people. Continue reading for more information, and you will also come across guidance through the Us Chamber away from Trade and Business Management.

Financial Burns off Emergency Loan Emergency Progress: 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 Get More Information SBA here.

Observe that not all banking companies / credit unions may take place

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.

How much will i located? 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 use? 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 am i going to located commission? 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.

Income Cover Program: 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 program? This is a new program from the SBA that 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 to 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 do i need to incorporate? 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 do i obtain 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 don’t have to obtain or even be acknowledged having financing to get the money advance

In which do i need to find more info? You can find more information about the Paycheck Protection Program at the following links:

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