Helpful Information Regarding
CARES ACT for Owner Operators

Emergency Economic Injury Disaster Loan (EIDL) Grants and Loans

Businesses and independent contractors can also apply for an emergency grant for up to $10,000. This grant would not have to be repaid, and $10 billion has been provided for these grants.
The loan and grant can be used for:

  • Meeting ordinary and necessary financial obligations that cannot be met as a direct result of the disaster.
  • Providing paid sick leave to employees unable to work resulting from COVID-19.
  • Repaying obligations that cannot be met due to revenue losses.
  • Maintaining payroll to retain employees during business disruptions or substantial slowdowns; and
  • Meeting increased costs for materials unavailable from original source due to interrupted supply chains.
  • Tax Relief

    Deferral of payroll taxes – Employers and self-employed individuals can defer payment of the employer’s share of the Social Security tax. These taxes would need to be repaid over the next two years, with 50% due by the end of 2021, and the remaining amount due by the end of 2022.

    Waiver of penalty for early withdrawal from retirement accounts – Individuals can withdraw up to $100,000 from qualified retirement accounts without incurring the 10% early withdrawal penalty. Eligible individuals include those diagnosed with COVID-19, those who have a spouse or dependent diagnosed with COVID-19, or those who suffer adverse financial consequences as a result of COVID-19, including closing or reducing business hours.

    New COVID-19 Paid Leave Requirements

    For Independent Contractors:
    Refundable tax credits will be available for self-employed individuals who have to miss work or take leave for the same reasons as described for employees. These credits will be claimed on a tax return, and they will be for the same amount as described for employees.

    For additional information: 

    U.S. Chamber of Commerce: COVID-19 Emergency Loans: Small Business Guide

    U.S. Small Business Administration: Coronavirus (COVID-19): Small Business Guidance & Loan Resources