Extremely important Notice: 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 click over here, and may reopen to new applications. We will keep you updated as we have new information.
During this challenging day, Lyft drivers gamble a serious character, hooking up people to very important services and you can items-particularly health care, as well as medication. I significantly take pleasure in your own efforts towards groups, and possess keep in mind that earning money is generally hard at this time.
Small businesses, plus independent builders and you can thinking-functioning some body, qualify to try to get an economic Burns Crisis Mortgage improve all the way to $10,one hundred thousand
Under the CARES Act, the small Team Administration (SBA) authored the brand new programs to support small businesses, including people who are worry about-working, sole holders otherwise separate designers. Of numerous people with the Lyft platform try self-functioning or very own their providers and can even qualify.
These types of SBA apps try new whilst still being from inside the development, so there is much we do not understand how apps will work and you can information ents, and certainly will continue steadily to share reputation centered on all of our comprehension of the fresh new apps. Money is limited, therefore we was guaranteeing people that really wants to apply at take action as fast as possible.
There have been two software available which will render dollars offers and you can forgivable finance to eligible drivers. Keep reading for lots more facts, and you can and additionally discover advice from United states Chamber out of Business and Home business Management.
Monetary Burns Disaster Mortgage Crisis Improve: 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.
Keep in mind that never assume all financial institutions / borrowing from the bank unions may take place
Just how much can 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 implement? 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 do not have to take out or be approved for a loan to receive the cash advance. You can also find detailed directions from the US Chamber of Commerce here.
When am i going to discover 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.
Paycheck Cover 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 is this option? 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 can i implement? 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 must 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 do i get the financing 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.
In which do i need to look for more info? You can find more information about the Paycheck Protection Program at the following links:
