Photography Business Resources During the Coronavirus -- Loans, Grants, Unemployment Benefits

Hi friends,

I know how tough the last few weeks have been with closing down our studios and canceling sessions.  I also know that a lot of people are stressed out about financial obligations now that they're unable to work.  Thankfully, we have some options. I've put together this list of resources for small businesses like ours that you might want to apply for. 

**Please do your own due diligence and consult your CPA and/or business attorney with questions. 

COVID-19 Economic Injury Disaster Loan & Loan Advance

Overview:  Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.  Funds will be made available within three days of a successful application, and this loan advance MAY not have to be repaid (more details to come!).

The loan program also provides small businesses with loans up to $2 million.

To apply: Fill out the form here. You are applying for both the disaster loan and loan advance in the same form. 

Gaby's notes: Although the site tells you to allot 2 hours to fill out the form, it only took me 15 minutes, tops. Once you submit the application, you'll be given an application number. No confirmation email was sent. I will update once I learn more. 

Paycheck Protection Program

Overview: This program was created for small businesses with employees as an incentive to maintain employment. Businesses may qualify for 8 weeks of payroll +25%.  SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.  

To apply: You can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union,  and Farm Credit System institution that is participating.

Repayment: The portion of the loan that is used for payroll, interest on mortgages, rent, and utilities will be forgiven. BUT at least 75% of the forgiven amount  must be used for payroll. Loan payments will be deferred for 6 months. 

For the portion of the loan not forgiven, the interest rate is .5%. 

More information here

This information was summarized from the U.S. Small Business Administration website. To read more about disaster relief programs for small business owners  by the U.S. Small Business Administration, click here.

Pandemic Unemployment Assistance (Unemployment for Photographers!)

Overview:  Did you know you can apply for unemployment through your state? The Coronavirus Aid, Relief and Economic Securities Act (CARES) that was signed last week extends unemployment insurance to self-employed workers and independent contractors (that's us!) through Pandemic Unemployment Assistance. 

On top of whatever you qualify for through your state, you'll also receive an additional $600 per week for up to 4 months through Pandemic Unemployment Compensation. 

Apply through your state:

**Please note that some states are not yet ready to accept applications. Keep checking!**