Many small business are sorry, out of luck (SOL) with the recent rule changes by the SBA of the EIDL loan ($10K advance) stimulus program. So what actions can we take today to survive?
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SBA EIDL Loan Updates
I’ll be blunt and just get it out there: If you are a business without employees, there’s no SBA $10K advance money or loans for you. If you are a gig worker expecting unemployment benefits, you are out of luck for the foreseeable future. I think you’ll eventually get them, but you really need to be finding new work to get by.
About 35% of the total work force in the US is in the gig-economy. The percentage is higher for Gen-Xers and Millennials. Most of them will not qualify for business stimulus funds. To me, it doesn’t make economic sense to exclude that many workers and still expect a quick full recovery.
So what can we do if we can’t get timely government help?
- We move. Take action. We adapt.
- Make the needed financial changes quickly. Like immediately.
- Decide to ‘Fish or Cut-bait’ on your key activities.
Resources and Links
PYMNTS.com article: The Gig Economy Gets Ready To Scale
NY Times article “Small Businesses Wait for Cash as Disaster Loan Program Unravels”
EntreLeadership Blog: What Small-Business Owners Need to Know About the CARES Act
Forbes article on the Gig Economy
CNBC article on : “Delays in SBA loans for independent contractors and self-employed workers