Debbie explains your Cares Act funding Options

Small businesses and independent contractors have lots of questions about what they are eligible for and how to apply.  You have two funding programs:

  1. Unemployment for laid-off employees and self-employed.  Self-employed unemployment in CA is called PUA (Pandemic Unemployment Assistance) – For either one, APPLY ASAP!  There will be a normal amount paid PLUS an additional $600/week.  Since this is not a normal feature for the states, it’s taking extra long to get their systems updated.  Each state is in various stages of that update.  CA EDD has just updated their system.   
  2. Small Business Loan/Grant – You can access this benefit through a bank that you already have a business relationship (includes a $25,000 loan advance) or the SBA (includes a $10,000 loan advance).  We hear that many large companies gobbled the first round of funding…that’s for another discussion.  However, it seems to have gotten a little better with this new round of funding.  It’s still taking a very long time though.  There are restrictions and rules on what part of this funding will be a loan or a grant.  This quote from the SBA website:  “This loan advance will not have to be repaid.”.  

Disaster Relief Funding Explained

There are four Funding Options.  You may not have to pay the ‘loan’ back if you meet certain criteria and independent contractors are eligible!

  1. Paycheck Protection Program – Overview of the entire program.  Basically, it’s a very low interest loan designed to provide an incentive for small businesses to keep their workers on the payroll.  Btw, if you have already laid off employees, if you hire them back by a certain date, you’re eligible for loan forgiveness.  And independent contractors with no employees can apply also.
  2. EIDL Loan Advance –  This quote from the SBA website “This loan advance will not have to be repaid.”  When you apply, make sure to check off the box on the application to receive it.
  3. SBA Express Bridge Loans – This is for people that have a relationship with a bank already.  We are hearing reports that unless you have an outstanding loan with the bank, people are being put at the end of a very long line 🙁 
  4. SBA Debt Relief – Reduced interest and extensions for current SBA loans



Lost your job?  Had a significant lose of revenue?  With President Trump’s signature, the bipartisan Cares Act, is now law. This crucial legislation will rush relief to the American families and main street businesses hit hardest by the CoronaVirusThis will at least help a bit.  The “CARES Act”, includes thousands of dollars in direct payments to most Americans, and huge loan packages designed to help keep small businesses and corporations afloat.

What’s in the stimulus bill?:

  • Direct payments: Americans will receive a one-time direct deposit of up to $1,200, and married couples will get $2,400, plus an additional $500 per child. The payments will be available for incomes up to $75,000 for individuals and $150,000 for married couples. This is true even for those who have no income, rely on Social Security benefits, or whose income comes entirely from non-taxable, means-tested benefit programs.
  • Use of retirement funds: The bill waives the 10% early withdrawal penalty for distributions up to $100,000 for coronavirus-related purposes, retroactive to Jan. 1.
  • Small businesses: $350 billion is being dedicated to prevent layoffs and business closures while workers have to stay home during the outbreak. Companies with 500 employees or fewer that maintain their payroll during coronavirus can receive up to 8 weeks of cash-flow assistance. If employers maintain payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven.
  • The unemployed: The program’s $250 billion extended unemployment insurance program — “unemployment on steroids,” as Sen. Chuck Schumer calls it — expands eligibility and offers workers an additional $600 per week for four months, on top of what state programs pay. It also extends UI benefits through Dec. 31 for eligible workers. The deal applies to the self-employed AND independent contractors!
  • Hospitals and health care: The deal provides over $140 billion in appropriations to support the U.S. health system, $100 billion of which will be injected directly into hospitals. The rest will be dedicated to providing personal and protective equipment for health care workers, testing supplies, increased workforce and training, accelerated Medicare payments, and supporting the CDC, among other health investments.
  • Coronavirus testing: All testing and potential vaccines for COVID-19 will be covered at no cost to patients.
  • Large corporations: $500 billion will be allotted to provide loans, loan guarantees, and other investments, overseen by a Treasury Department inspector general. These loans will not exceed five years and cannot be forgiven.
  • Airlines will receive $50 billion (of the $500 billion) for passenger air carriers, and $8 billion for cargo air carriers.
  • Payroll taxes: The measure allows individuals to delay the payment of their 2020 payroll taxes until 2021 and 2022.
  • States and local governments will get $150 billion, with $8 billion set aside for tribal governments.
  • Agriculture: The deal would increase the amount the Agriculture Department can spend on its bailout program from $30 billion to $50 billion, according to a press release issued.