If you’re a musician, music educator, sound engineer, live event staff, or anyone who owns a small business or earns income as a self-employed worker, the economic impact of the coronavirus (COVID-19) has been particularly painful.
We at zZounds wanted to help share information about the recently passed Coronavirus Aid, Recovery, and Economic Stimulus (CARES) Act, and let you know what may be available to you, as well as how to apply and seek aid.
The $2 trillion CARES act provides a number of benefits that musicians, audio engineers and others can apply for. Read on to learn more about these.
Benefits for Self-Employed Music Workers and Music Business Owners
Through the US Small Business Administration (SBA), the CARES Act has made multiple loan programs available to business owners — including individuals who operate under a sole proprietorship, with or without employees, or as an independent contractor. Here is a brief rundown of three major programs.
How Freelance Music Industry Workers Can Earn Up to $10,000 in Aid
Canceled gigs during the start of touring season have hurt a lot of musicians. If you need quick relief, you can apply for a one-time forgivable Economic Injury Advance Disaster Loan. The loans will be issued in amounts of up to $10,000 and will not need to be repaid, so long as the loan is used to pay qualified business expenses.
How to apply: Visit the SBA’s COVID-19 Disaster Assistance Page
Longer Term Loans Available to Music Industry Workers
Small businesses, like music schools, studios, event DJs, and others, as well as freelance performers and audio engineers, are eligible to receive a Economic Injury Disaster Loan (EIDL) of up to $2 million. These loans will be offered with an interest rate of 3.75% for businesses and 2.75% for nonprofits. Repayment lengths vary, and terms can extend up to 30 years.
How to apply: Visit the SBA’s COVID-19 Disaster Assistance Page
Ensuring Your Employees Are Paid
The CARES Act also provides a Paycheck Protection Program (PPP). In this program, The US Small Business Association backs loans issued by local lenders, giving business owners, nonprofits and sole proprietors a secure source of funding.
These PPP loans cap out at either $10 million or 2.5 times the average monthly payroll amount — whichever is less. Interest rates on PPP loans are capped at 4% and terms go up to 10 years. There are several forgiveness provisions with these loans, and this Forbes article lists many out clearly, along with considerations that businesses should keep in mind before applying.
How to apply: Contact your local lending institution.
Relief Checks Most Americans Will Receive
You may have heard by now that Americans earning under $99,000 annually will receive rebates of up to $1200. Married couples who file jointly will receive up to $2400. For each child under 17, a family will earn an additional $500.
Jobless individuals, the self-employed, independent contractors, and “gig” workers can also receive $600 per week in addition to whatever aid their state provides. Unemployment benefits in each state will also be extended by 13 weeks.
How to apply: Need is determined based on Adjusted Gross Income (AGI) as found on a tax return. Americans will be evaluated based on their 2019 or 2018 tax returns. If you haven’t filed your 2018 tax returns, act fast, as the IRS has stated “Those without 2018 tax filings on record could potentially affect mailings of stimulus checks.”
For those who have direct deposit set up with the IRS, stimulus payments should be received starting on the week of April 9, though some could receive the money as late as September. If you’d like to set up direct deposit, note that the IRS has plans to set up a website for that purpose within the next few weeks. Those who choose not to set up direct deposit will receive checks by mail.
Keep the Music Going
We at zZounds want to see musicians, educators, engineers, luthiers and anyone involved in music thrive, so we hope this information is of use to you. If you foresee difficulty in making payments on a recent zZounds gear purchase, please contact us: 800-ZZOUNDS.
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