Business of VO: COVID-19 Relief for Small Businesses

with Rob Sciglimpaglia

VO Boss Anne Ganguzza welcomes back Special Guest Rob Sciglimpaglia to discuss COVID-19 relief resources for small businesses including: the Coronavirus Aid Relief and Economic Security (CARES) Act, Federal stimulus checks, banking assistance programs, home loans, and paycheck protection. Small business owners (including sole-proprietors) may be eligible for loans and cash advances that do not have to be repaid. Be smart BOSSES, know your options, and go get that money!



Takeaways

Quick Concepts from Today’s Episode:

  1. The Corona Virus Aid Relief and Economic Security (CARES) Act provides $2 Trillion in assistance

  2. This is aid out there to help small businesses, including sole-proprietors

  3. Every small business owner should understand their options and make a decision about applying

  4. Most Americans will get a $1200 stimulus check (and $500 per child). Those who make $75K or less will get the full amount, prorated to $99,999. The limit is $150K for families

  5. You will automatically get this check as long as you filed 2018 taxes (or 2019)

  6. Freelancers in California are also eligible to apply for unemployment. This is done at the state level

  7. The CARES Act adds additional money ($600 per week) to each unemployment check

  8. The CARES Act gave money to the Small Business Administration

  9. Sole-proprietors, LLC, and Non Profits are eligible. If you filed a schedule C, you are eligible

  10. $10,000 can be given up front as an advance, that doesn’t have to be paid back

  11. It is free to apply for

  12. The loan application is fairly quick and easy

  13. How much you made it listed on your Schedule C in your taxes

  14. Cost of Goods Sold would be zero for voice artists

  15. Funds will be made available within three days of an accepted application

  16. The forgiven portion of this loan will not be included in the borrower’s taxable income

  17. If you have questions, you can ask your accountant

  18. The worst that the SBA can say is NO!

  19. The Paycheck Protection Program is a second loan that you can apply for. You can borrow 2.5 times your payroll, and as long as you continue to pay this, you don’t have to pay it back at the end.

  20. You can only get the injury distaster advance OR the Paycheck Protection loan. Apply for both and take whichever is bigger

  21. Interest rates are low if you DO have to pay anything back

  22. As part of the Paycheck Protection Program, if you have an existing relationship with a bank, you can do a bridge loan, where the bank advances you $25K right away.

  23. Some banks are reaching out to tell you how to waive your interest or delay payments

  24. Check with your bank for the bridge loan or to waive interest and defer payments

  25. If you can afford it, keep paying your Mortgage, unless your bank is flat out waiving payments. Contact YOUR bank for details

  26. You can also apply for regular distaster assistance. These loans would have to be paid back. The interest rates are super low (2.5%)

  27. We have the ability to work from home, but our client’s lives has drastically changed, so we may lose business

  28. Take advantage of these loans NOW, because we don’t know how long this is going to last

  29. Women and minority owned businesses can get money at preferred rates through the SBA


Referenced in this Episode

Direct links to things we brought up ++


Official SBA Loan Resources
Paycheck Protection Program
Economic Injury Disaster Loans and Loan Advance
SBA Debt Relief
SBA Express Bridge Loans
Guidance for Businesses and Employers
SBA Products and Resources
Government Contracting
Local Assistance
Direct Link to SBA Loan Application
Interim Guidance for Businesses and Employers to Plan and Respond to Coronavirus Disease 2019 (COVID-19)
Preventing Stigma Related to COVID-19
Share Facts about COVID-19
CDC Coronavirus Disease 2019 (COVID-19) Web page
Information on Coronavirus Disease 2019 (COVID-19) Prevention, Symptoms and FAQ
Recorded on ipDTL
BOSS Editing by Carl Bahner

Transcript

>> It’s time to take your business to the next level, the BOSS level! These are the premier business owner strategies and successes being utilized by the industry’s top talent today. Rock your business like a BOSS, a VO BOSS. Now let’s welcome your host Anne Ganguzza.

Anne: Hey everyone. Welcome to the VO BOSS podcast. I’m your host, Anne Ganguzza, and man, it has been a crazy week. Actually a crazy month. I’m really hoping all of you BOSS listeners out there are staying safe and healthy and washing your hands during this insanity. Earlier this week, I became aware of quite a few resources that are now being made available to small businesses as well as personal income. And I felt that it was important to share this information with you. And of course, while I was doing my research, I found one of our favorite VO BOSS special guests that was out there helping and sharing his wisdom with the community like he always does. And I wanted to bring him on the show to share it with you guys as well. So quadruple threat [laughs] lawyer – actually I guess it would be quintuplet threat – lawyer, voice actor, actor, director and author, Rob Sciglimpaglia. Hey Rob.

Rob: Hey Anne. How you doing? Thanks!

Anne: Thanks for joining us.

Rob: My pleasure, as always.

Anne: Yeah, and you know, really, I really thank you for this, because you’re just always out there helping the community. And I’m so grateful for that. As are I’m sure many of the listeners out there and the people that benefit from your help and guidance. So I thought it would be good to talk to you about the available options for us personally as well as for our businesses that have recently been signed into law and passed the CARES Act. That’s the Coronavirus Aid Relief and Economic Security Act, $2 trillion for the economic assistance. And I want a piece of that. So. [laughs] I think we should talk about that. [laughs]

Rob: Sure, well I mean, that’s the whole point, put money in our pockets where, you know, we’re all hurting.

Anne: Exactly. I know that I had responded to you on one of the groups saying that I had already applied. Just a full disclosure, I applied for one of these. And I wanted people to know that, you know, this is aid that is out there to help small businesses, and I don’t want there to be any stigma about that. But it’s out there provided for small businesses like us to utilize if we can. And so I applied and you know, we’ll see what happens. I think all of you should really at least understand what is available to you out there, and then make a decision based on that.

Rob: Absolutely.

Anne: Rob, let’s talk about – I guess the first thing personally, we’re all supposed to be getting a stimulus check, a $1200 stimulus check.

Rob: Correct.

Anne: Depending on I guess what we made on our last year’s taxes, and that is per person, right?

Rob: Yep. I believe the family limit’s $150,000 income per year. I think that’s what I heard.

Anne: Okay. And so you’ll be eligible for that if you make a certain income. That is just supposed to be coming to us, we hope. [laughs]

Rob: Correct. Correct. And then it’s like $600 per child, something like that.

Anne: $500 or $600 per child. You don’t have to necessarily do anything to –

Rob: Nope.

Anne: – be eligible or to apply. There is nothing you have to do there.

Rob: As long as you filed your taxes. That’s it.

Anne: Oh yeah, that’s actually a really good point. Actually I have a note that says make sure to file your taxes, because you cannot partake of that eligibility if you have not filed your taxes.

Rob: It doesn’t have to be 2019. It could be 2018.

Anne: That’s true.

Rob: 2019 is not due yet.

Anne: I have not filed my 2019 taxes, so yeah, it’s going to be based on your income from 2018.

Rob: 2019 is part of the act too. It was pushed out to July 15.

Anne: Yes, that makes a lot of people happy, I think.

Rob: Definitely.

Anne: Myself included. Also I found out early on, before I found out about this new, the CARES Act, as freelancers we’re eligible to apply for unemployment. I always thought that we were not able to apply for unemployment insurance. So…

Rob: Well, the unemployment is done by state, so every state has a different rule about that, but I think what the CARES Act did was make it more uniform so that more people could apply, widen the net, so independent contractors –

Anne: And freelancers.

Rob: – gig workers and freelancers can apply, yes.

Anne: From what I read, it says that it now offers unemployment insurance for which typically we never did on a large scale for the first time. So you can get, I don’t know, an additional $600 a week in unemployment insurance?

Rob: Right.

Anne: Including what benefits your state might give to you. So that’s kind of cool. Let’s talk a little bit about the relief programs, the CARES Act and the specific programs that they offer for businesses.

Rob: The CARES Act gave money to the SBA, the Small Business Association – or Administration, sorry. And there’s a number of programs helping small businesses like us, so. You know, and bigger size too. A lot of these things are pretty comprehensive because it even covers – it could go up to like 500 employees. So there are, you know, some pretty good sized businesses that fall under this.

Anne: Should we first establish that yes, you have to be a business, at least a sole proprietorship, or?

Rob: Yes, it can be a sole proprietor. You can be an LLC, nonprofits are covered under parts of these too. Basically you know, if you’ve filed the Schedule C, then you are going to be eligible to apply.

Anne: I think what makes it so attractive for me [laughs] well, for me, was that the loan can be forgiven under certain circumstances.

Rob: That’s one of them. Yes, the Economic Injury Disaster Advance Loan, they’re saying that they’re going to give $10,000 right up front as an advance that doesn’t have to be paid back.

Anne: That’s kind of what attracted me because during these months, during this crisis here, I mean, we are freelancers. I can’t imagine this not impacting a lot of us or a vast majority of us. I think that if the money is being allocated there, there’s no money actually to apply. This is the one that I did apply for. It did not take me very much time at all. There is no fees to apply. And basically all I can say is no.

Rob: Right.

Anne: So I think that I wanted to get my application in sooner rather than later, thinking there is probably going to be overloaded. [laughs]

Rob: I’m sure a lot of people are putting applications in, but basically it just asks the qualifying questions to make sure that you’re in a qualifying business and that you had a Schedule C. They ask how much you earned. Those are the two questions I’ve been getting a lot of questions from other voiceover artists, other businesses about the cost of goods sold and the receipts. Like there’s two questions. One asks you how much you made. That would come off your Schedule C. And then there is another question right after, c