The coronavirus business assistance programs approved by the New Jersey Economic Development Authority on Thursday are designed to get money into the hands of the very smallest employers as quickly as possible, and that’s good news for independent contractors, sole proprietors and very small LLCs, according to NJBIA Vice President for Government Affairs Chris Emigholz.
Independent contractors and freelancers especially are in a sort of limbo: They don’t have organizations that pay them a regular salary (they get paid by the job, usually) and, being independent, they don’t qualify for unemployment or paid leave.
“The EDA grant program could benefit a lot of independent contractors,” Emigholz explained, though not all of them may qualify for aid. “The EDA programs were designed to provide fast financial assistance to the smallest of small businesses, and you can’t get much smaller than working alone for yourself.”
As New Jersey Business reported on Thursday, the EDA approved $75 million in emergency assistance to business, and Emigholz said applications could be ready as early as next week. The programs include grants of up to $5,000 for small businesses in retail, food service, accommodations and other hard hit industries. It also includes 0% interest loans of up to $100,000 for companies with less than $5 million in annual revenues.
Only businesses with one to 10 employees are eligible for the program, and EDA made it clear that the majority of grants would go to those with fewer than five employees.
Emigholz indicated that the programs were designed with the idea that a lot more money will be made available once the federal stimulus package is finally approved. (Insert House Vote here, if available.)
“These programs are designed to be scalable,” Emigholz said. “We’re anticipating a large infusion of cash from the federal government, which can hopefully just be added to what EDA is already doing for business to help out more companies. Federal requirements may mean they have to change their programs or adopt new ones, but if not, this is an efficient way to get funding to where it’s needed as quickly as possible.”
I have a small nursery school photography business, an LLC. We rely on our income to pay our health insurance and basic other bills to survive. It’s me and my business partner. Will we qualify for the $5000 grant we desperately need to survive this year?
I feel your pain, i am a one man p&h contractor cant work from home, and no income at all! i hope we will not be forgotten! 27 years 3rd generation, i think we deserve the $5000 dollar grant!
i operate my business from home as a independent Marketing and Financial credit consultant my business has been affected cause of the corona virus situation i have no source of income and can not collect unemployment do i qualify for the $5,000 dollars grant?
Hi,
How do I apply for help? We are a family owned business in the transportation service of Charter Buses, we have no income, and no unemployment.
My pottery studio & gift shop is run by myself & my business partner. We have no employees & can’t seem to find a grant we are applicable for. We shouldn’t be excluded for that. What can we apply for?
We are a Mold Inspection company- Just me- no other employees. Very small company, what are our options, now that business has come to a screeching halt?
Independent contractors, sole proprietors and the self-employed are eligible to get loans under the Paycheck Protection Program. The program covers a number of operating expenses besides payroll, including rent or mortgage and utilities as long as they were expenses in place prior to Feb. 15.
Sole proprietors can apply tomorrow. Independent contractors and the self-employed can apply on or after April 10.
Please check out this article on our website for links to the application and instructions for filling it out:
https://njbia.org/applications-available-for-paycheck-protection-program-processing-starts-friday/#comments
Hope this is helpful. Good luck!