CARES Act - 3 things for you to do today
We have spent Monday & Tuesday this week on many conference calls and talking with our accountant and banker. The CARES Act has 3 provisions that apply to most if not all independent artists.

There is some interaction between the EIDL Loan/Grant and the PPP (see descriptions below). It is our accountants advice to ArtFest Fort Myers to apply for both and then sort out the reporting issues after-the-fact.

Economic Injury Disaster Loans & Grants
There has been a lot of "speculation" on this program on Art Fair Lounge and so on. The facts are:
  • apply for the loan (then decide how much and if you really want it)
  • check off the box that says you are asking for the $10,000 advance - it is on page 3 or 4 toward the bottom and is big & bold. The $10,000 is an immediate grant to be used for the expenses shown below. It doesn't have to be repaid and you get it whether you end up with a loan or not. This check box is the whole point for quick relief.
These grants provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the advance. T he advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.

The SBA Loan application is easy - it took us 10 minutes online with no crashing or other issues. Click Here to Apply You apply directly with the SBA not your bank.


Payroll Protection Program (PPP)
Who can apply? All businesses including . . . sole proprieters , self-employed individuals and independent contractors with fewer than 500 employees . . . That is you.

Where do I apply? Your bank or any FDIC insured bank and fastest will be banks already on the SBA 7A list.

When it starts? April 3 or April 10 depending on business structure.

Our Accountant's advice is:
  • get your PPP Application filled out now
  • contact your bank and arrange to get application to them on the 1st date you can
  • FYI - ArtFest Fort Myers has done both and we are ready to retain our staff - no layoffs here

Unemployment Benefits
Remember Unemployment Benefits now include coverage for freelancers, and "gig economy" workers (that's you) . And they include an additional $600 per week to each recipient for up to four months.

BUT If you use the PPP then obviously you and/or your employees would not be unemployed during the coverage period so Unemployment Benefits are not applicable. Of course, you could use Unemployment later in the year after your PPP coverage period has past.

And if you only apply for SBA Economic Injury Disaster Loan and its $10,000 grant you need to keep employees (including yourself) paid. Or the $10,000 could become playable as a loan - but that might not be all bad depending on your situation.

State Unemployment Office handle Unemployment Benefits.


After you have done the PPP and EIDL there will also be Business Tax Relief to learn about
There are a variety of business tax provisions for refundable payroll tax credit; employer-side Social Security tax deadline delay; new Net Operating Loss rules recover taxes paid in past years to provide you liquidity and cash flow. Talk to your accountant about these new tax benefits.