At this time there are 57 million self-employed persons. That number makes up a significant percentage of the national economy. During a pandemic such as the one we find ourselves in now, professionals who work for themselves or another small business may find themselves the most vulnerable. Here are a few highlights from last week's stimulus package (The CARES Act) that you should know about.
Unemployment benefits for the self-employed
One of the major changes the new stimulus package brings is that unemployment benefits have been bolstered significantly and have been opened up for self-employed persons. This Federal funding has made an additional $600 a week available on top of your state's unemployment benefits and can be available for up to four months. If you live in the state of New Hampshire you can apply here: www.nhes.nh.gov/
If you live in Vermont labor.vermont.gov/unemployment-insurance
Business loans from the US government
Hundreds of millions of dollars have been made available through the Care act for small businesses. The SBA is also offering economic injury disaster loans for qualifying businesses. These are low interest loans with terms as long as 30 years.
Paycheck Protection Program
This provision was put in place to reward small businesses for keeping their employees on staff during a code 19 crisis. These loans which are up to 10 million dollars can be forgiven in the event your business maintains or restores their payroll during the pandemic. This loan can essentially convert into a government grant.
Employee Retention Tax Credit
This credit available to ailing businesses in 2020, is equal to 50% of workers wages of up to $10,000 per worker. So this year the maximum credit per employee is $5,000. However, this credit is not available to businesses that also get a loan through the above Paycheck Protection Program.
The credit can also be claimed against quarterly payroll taxes.
These are just a few highlights that may be available to you under this new stimulus package. Keep in mind, some of these may or may not be appropriate for your business so please consult your advisor before making any decisions.
If you have questions or concerns for your business and you are evaluating the ways to weather the storm let me know. A brief phone conversation could do a lot to calm the nerves and help you stay focused.
I can be reached at 866-360-2724 or via email at firstname.lastname@example.org