The latest news is that the Economic Injury Disaster Loan (EIDL) was funded again and is open for applications from sole practitioners and small businesses as of June 15, 2020. In addition, as many states are now allowing our members to open, it may be a good time to apply for the Paycheck Protection Program (PPP) to help you with payroll and other expenses as you open up and get back on your financial feet.
For the full update, go to www.abmp.com/updates/news/financial-benefits-massage-therapists-coronavirus
Payment Protection Program–Apply by June 30, 2020
The Paycheck Protection Program (PPP) is open for small businesses, the self-employed, and sole proprietors, and funding for the PPP remains available through June 30, 2020. This loan provides funds to keep employees paid for 24 weeks. The PPP rules were updated June 11 and June 12. This link provides a helpful summary of the modifications to the PPP (https://www.bhfs.com/insights/alerts-articles/2020/updates-to-the-ppp-fo...).
The PPP can be used for payroll of employees of the business. This includes sole practitioners, as the sole practitioner is considered both the owner and the employee of the business.
The June 11 rule expands the use of PPP funds to include payroll costs, health and leave benefits, mortgage, rent, utility payments, and interest on debt obligations incurred prior to February 15, 2020, and the refinance of EIDL loans made between January 31, 2020, and April 3, 2020, if used for payroll costs.
Economic Injury Disaster Loan Reopen as of June 15
An Economic Injury Disaster Loan (EIDL) was also available from the SBA. As of June 15, 2020, the EIDL was open again to all qualified independent contractors and small businesses. These loans take some time to process.
EIDL loans are long-term, low-interest loans, some of which must be paid back. Forbes.com indicates there is a $1,000 grant available that does not need to be repaid. In addition, you can apply for a $10,000 advance to help keep you on your feet that does not have to be paid back.
EIDL funds may be used to pay for expenses that cannot be paid due to COVID-19, including existing debts, rent, mortgage interest payments, salaries, health benefits, insurance, payroll, sick leave and medical leave, and accounts payable.