If you are self-employed or a small business owner, you may be facing a loss of revenue due to stay-at-home orders and mass closures throughout the State of Colorado. As a result, meeting you family support obligations, paying your mortgage and car loans, while still supporting yourself, may be difficult, if not impossible. The federal government has recently passed legislation to help small business owners, including sole proprietors. There are a few different programs that may be available to provide economic assistance to your business during these difficult times.
The first is the Payroll Protection Program (PPP) which provides forgivable loans of up to $10 million for certain business costs. There are certain eligibility requirements and you will need to apply through a authorized bank or lender. Some of the loan amount may be forgiven. As the funds available are limited, you should contact your bank right away for more information about how to apply for the PPP.
The SBA has also set up an Economic Injury Disaster Loan and Loan Advance (EIDL) program, which provides small businesses, including non-profits, with low interest loans of up to $2 million. You can access up to a $10,000 loan advance within three days of your application to pay for certain business expenses. You apply for the EIDL program directly through the SBA portal.
There are other programs available to help you get through these difficult times. The Colorado Office of Economic Development has created a resource page which includes numerous resources available for small businesses, including sole proprietors, and independent contractors. You can obtain more information at choosecolorado.com/covid19/.
The information herein is by no means exhaustive as the options available to small businesses and sole proprietors but it is a starting point. We encourage you to contact your bank, CPA, and the SBA for further information.