CARES Act Guide for Videographers and Photographers (Paycheck Protection Program)
This guide summarizes how videographers and photographers can take advantage of the $2 trillion CARES Act via the SBA’s Paycheck Protection Program.
Videographers and photographers have been hit especially hard by the Covid-19 outbreak and subsequent stay at home orders. Weddings and other events have been cancelled and rescheduled across the country. This has caused an unprecedented and sudden financial hardship.
Here at Papermotion we have been following these developments closely. On March 27 the $2 trillion CARES Act was signed into law. $349 billion has been specifically allocated to aid small businesses, self-proprietors, and independent contractors. The relevant program for small businesses like yours and ours is called the Paycheck Protection Program (PPP).
We will update this guide periodically as new information becomes available.
The Basics
The PPP provides low interest, deferred loans.
Up to 100% of the loan can be forgiven completely tax free, ie free money
Businesses with under 500 people, sole proprietors, and independent contractors all qualify.
It is important to apply ASAP as it is predicted the funds will run out very quickly.
The SBA is supposed to be taking applications Friday, April 3, but many banks are not ready and have pushed back the date.
Lenders are not allowed to charge fees or require a personal guarantee or collateral.
You can apply for a loan via qualified lenders. This is likely your bank or credit union. If you need to find a lender go here: http://sba.gov/paycheckprotection/find
The Details
Gusto (the payroll company) wrote a fantastic blog post about the PPP yesterday which you should absolutely read:
https://gusto.com/blog/payroll/paycheck-protection-program-smb-guide
(Gusto is amazing and you should absolutely use them for payroll. Use our referral link and we will both get $100)
If you do not run payroll that’s OK. You can still apply to the PPP as sole proprietor or independent contractor. Bench.co wrote a great guide on this:
https://bench.co/blog/operations/paycheck-protection-program-self-employed/
Action Items
Talk to a qualified lender and/or your accountant right now!
Gather required information. This includes your 2019 payroll (or 1099s), healthcare, rent and utilities cost
Useful links
Official SBA PPP Site
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
Official SBA PPP FAQ
https://home.treasury.gov/system/files/136/PPP%20Borrower%20Information%20Fact%20Sheet.pdf
SBA Interim Final Rule on the PPP
https://home.treasury.gov/system/files/136/PPP--IFRN%20FINAL.pdf
CARES Act Full Text
https://www.congress.gov/bill/116th-congress/senate-bill/3548/text
Chase Business Customer Application
https://recovery.chase.com/cares1