One thing people are asking is whether THEIR nonprofit or business qualifies for this emergency grant and EIDL loan.
I pulled up the Bill again to show what businesses and nonprofits are able to apply. All small businesses and nonprofits basically qualify, even the smallest. And sole proprietors and independent contractors can also apply. And YES – all nonprofits with under 500 employees can apply.
Here's what the law says:
SEC. 1110. EMERGENCY EIDL GRANTS.
(a) Definitions.—In this section— (1) the term “covered period” means the period beginning on January 31, 2020 and ending on December 31, 2020; and
(2) the term “eligible entity” means—
(A) a business with not more than 500 employees;
(B) any individual who operates under a sole proprietorship, with or without employees, or as an independent contractor;
(C) a cooperative with not more than 500 employees;
(D) an ESOP (as defined in section 3 of the Small Business Act (15 U.S.C. 632)) with not more than 500 employees; or
(E) a tribal small business concern, as described in section 31(b)(2)(C) of the Small Business Act (15 U.S.C. 657a(b)(2)(C)), with not more than 500 employees.
(b) Eligible Entities.—During the covered period, in addition to small business concerns, private nonprofit organizations, and small agricultural cooperatives, an eligible entity shall be eligible for a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)).
Also available at https://www.congress.gov/bill/116th-congress/house-bill/748/text#toc-H77B4D3AE3E144B039483546D7EC11D5D
Hey folks, Jess Birken here with Briken Law Office. I wanted to talk with you again just to point out who is eligible. So again, I've pulled up the language of the bill that passed on Friday, that CARES act, that extended small business loans to small businesses throughout the country. One of the questions I'm getting is who is qualified? So we are looking at the eligible entities, right? Eligible entities are businesses with less than 500 employees. So as long as you meet that criteria, you are good. It also applies to individuals who operate as a sole proprietor. That means your business is just you and you don't have some sort of corporation or LLC around you. And it also applies even if you don't have employees other than yourself in your business. And it also applies to you if you function as an independent contractor, meaning that you do work on a contract basis for others and then they send you a 1099 at the end of the year.
So if you are self-employed, this helps you, which is crazy because when does the government ever actually give the little people some stimulus money? So that's why this is so important. I hope that this is helpful to you and understanding that yes, you can apply for these things even if you don't traditionally feel like you would normally qualify. I want you to know that you as a business owner qualify and also this, all nonprofits qualify. If you are a nonprofit organization with less than 500 employees, you are also qualified. So if you're a nonprofit and you have questions about what to do right now, or whether you should apply for these loans or you need help, please contact me. I'm at birken-law-backup.local.