Mertzcrew recommends all AV companies share this with any 1099 AV Freelancers that have worked on projects for them in the past 12 months.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.
Self-employed individuals, sole proprietorships, and independent contractors are eligible!
Funds are provided in the form of loans that will be fully forgiven when used for payroll costs, interest on mortgages, rent, and utilities (at least 75% of the forgiven amount must be used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge any fees.
Starting April 10, 2020, independent contractors and self-employed individuals can apply. Apply as quickly as you can because there is a funding cap. The loan will be administered by banks that are authorized to process SBA Loans; funds will not come directly from the SBA. Contact your bank as soon as possible to confirm if they are an approved lender with the SBA.
Due to the nature of this loan, most banks are only accepting these applications from companies and individuals that have a banking relationship with them as of February 15, 2020.
Here is the latest SBA-approved application; please note that your bank may use a slightly modified version of this application. For independent contractors, "average monthly payroll" on the application should be calculated by totaling all freelance income from 3/15/19 to 3/15/20 and dividing by 12.
Additional information that will likely be requested by banks are:
2019 1099s (not W2s)
2018 & 2019 Tax Returns
Drivers license or official US picture ID.
Please log in to your account in Mertzcrew and select "HELP" if you need a copy of your 2019 1099. Some banks may request an "Income Verification Letter" from a contracting company; please let us know if you need this and we'll be happy to provide it.
This program is changing rapidly and this post may not cover all of the details. We will add new information as it becomes available. While we can't advise you on specific tax or banking decisions, we can help to provide whatever information you may need to submit an application to your bank. Be safe and we look forward to getting back to the business of AV!