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Resources for the Self-Employed

March 31, 2020

By Marilyn Le Lodico, Esquire

Self-employed individuals who are experiencing financial losses due to the Coronavirus outbreak will soon have resources available to help get them back on their feet.  Contact your Rothman Gordon legal team for comprehensive guidance on your options. Here are some of the resources you may be eligible for:

If you are single and your adjusted gross income was $75,000 in 2018 or 2019, then

  • You can expect a one-time cash payment of $1,200 and $500 for each child from the CARES Act.

 If you are married and as a couple, your adjusted gross income was $150,000 in 2018 or 2019, then

  • You can expect a one-time cash payment of $2,400 and $500 for each child from the CARES Act.

 If you are self-employed and need financing, then

  • You can apply for a COVID-19 Working Capital Access loan from the Pennsylvania Industrial Development Authority, in an amount up to $100,000, at 0 % interest if you are located in Pennsylvania. The loans have 3 year terms with no payments due the first year. Due to limited program funding, interested business owners should apply to this program as soon as possible.
  • You can apply for a SBA Loan under the CARES Act Economic Injury Disaster Loan Program. The loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid to due to the impact of the Coronavirus outbreak. This federal loan program provides loans up to $2 million for certain working capital costs and debts to eligible borrowers that have suffered substantial economic damage as a result of the Coronavirus for the period beginning Jan 31, 2020. At the time you apply for an EIDL loan, you can also apply for an Emergency EIDL Grant of up to $10,000.00, which does not have to be repaid.
  •  You can apply for a SBA Loan under the CARES Act Paycheck Protection Program. The loans can be used for certain payroll costs, costs related to health care benefits, employee salaries, rent payments, certain mortgage obligations, interest on debt obligations, and utility payments. There is no collateral requirement, no prepayment penalties, and no “credit elsewhere test.” The maximum amount of a loan under this program is $10 million with a maximum interest rate of 4 %.

If you are self-employed and are unable to work due to the Coronavirus outbreak

  • You can apply for unemployment benefits under the Pandemic Unemployment Assistance Program. This new program under the CARES Act extends unemployment benefits to gig workers, contractors, and other self-employed individuals who wouldn’t otherwise qualify for unemployment compensation but cannot work due to the Coronavirus outbreak. You may be eligible to receive $600 per week in emergency federal compensation through July 31, 2020, plus half the average unemployment benefit in your state.

 If you cannot work because your child’s school or daycare is closed

  • Self-employed individuals may be eligible for refundable Tax Credits under the Families First Coronavirus Response Act equal to the amount of days that they are unable to work since April 1, 2020, up to 12 weeks, multiplied by the lesser of either $200 or 67% of the average daily self-employment income for the taxable year.

If you cannot work because you or a family member are being quarantined or are experiencing Coronavirus symptoms

  • Self-employed individuals may be eligible for refundable Tax Credits under the Families First Coronavirus Response Act equal to the amount of days they are unable to work since April 1, 2020, up to 14 days, multiplied by the lesser of either $511 or 100% of the average daily self-employed income for the taxable year.
  • Self-employed Individuals may be eligible for refundable Tax Credits under the Families First Coronavirus Response Act equal to the amount of days that they are unable to work since April 1, 2020, up to 12 weeks, multiplied by the less of either $200 or 67% of the average daily self-employment income for the taxable year.

Contact us or call (412) 338-1100 if you need assistance understanding your options as a self-employed worker.

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