Financial relief for small businesses affected by COVID-19
The Small Business Administration reopened the Economic Injury Disaster Loan (EIDL) and Emergency Advance Program on June 15, 2020 “to provide economic relief to businesses that are currently experiencing a temporary loss of revenue.” Funding is limited. Don’t delay if you want to participate!
In addition to small businesses, which can get a loan advance of up to $10,000, sole proprietorships and independent contractors can also get an advance of $1,000. This “advance” does not have to be repaid, even if the loan is not approved.
If you have not yet applied for an EIDL, you can do so by filling out the form at the SBA website here. The entire process should take about 10-15 minutes and is fairly straightforward.
- For a small language services companies, select box 1 (business < 500 employees).
- For sole proprietors and independent contractors, select box 3.
- Review and affirm a list of statements about disqualifying activities (e.g., you are not a member of Congress).
- Provide basic information about your business and the business owner such as name, address, email, etc.
- You must provide your gross revenue and “cost of goods sold” (COGS) for the period from February 1, 2019 to January 31, 2020.
There is no guidance provided on what constitutes “cost of goods sold” for service providers such as translators, interpreters, and language service companies. Strictly speaking, our COGS is normally zero as we don’t sell “goods.” That is in line with Schedule C, in which the COGS relates solely to inventory, while all other costs of providing our services are considered other business expenses.
You will also have to check off a number of statements affirming you are eligible for the program.
If approved, your advance will be deposited in the bank account you provide in the application.