Self-Employed Freelancers

Savi Moni

Savi Moni helps freelancers and solo entrepreneurs maximize their tax savings and manage their finances leveraging tech + vetted finance professionals. As a self-employed entrepreneur, the lines between business and personal finances can often be blurred. So we created a software tool that allows you to organize it all in one place and get expert advice when you need it most.

Stimulus Guide

The team at SaviMoni created this guide to help small businesses and solo entrepreneurs navigate through the tons of overwhelming information, (and misinformation) during these unprecedented times.

This guide offers resources, tools, and insights on government-sponsored programs, funding, grants, and other information we think may be useful.

It is updated regularly, as we obtain new information from credible sources and verify it. We hope it helps you have one less thing on your to-do list. More importantly, we hope it helps you to sustain your business through this pandemic.

Table of Contents


The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The PPP loan can be forgiven, thus becoming a grant, if you adhere to the stipulations. The loan is 100% backed by the SBA and applicants can request up to $10mil.


    • Borrowers can request up to ten million dollars($10mil) in funding.
    • This loan matures in 2 years.
    • The interest rate is 1%.
    • The first year of payments can be deferred.
    • The loan is $100% backed by the SBA; no credit check is required.


  • Your business has been economically affected or that economic uncertainty makes the loan necessary; you will need to certify this.
  • Must have Payroll (w-2) employees or 1099 independent contractors.
  • A small business as classified by the NAICS standard that was in business on or before February 15, 2020, with fewer than 500 employees.
  • This can be an S Corp, C Corp, LLC, sole proprietorship, or independent contractor. It also includes certain nonprofits, tribal groups, and veteran groups. 


  • Contact your bank or a participating lender. 
  • Zenefits offers a comprehensive list of lenders that is being updated, here.
  • Go to SBA.gov and use their Lender FinderTool, here.
  • Banks can start processing loan applications on April 3, 2020, and April 10th for Self-Employed + Sole Proprietors and the program will be available through June 30, 2020.
  • Many banks and lenders currently participating in the SBA 7(a) loan programs are participating in the Paycheck Protection Program. These banks or financial institutions can assist an applicant in determining whether your business qualifies for a PPP loan.


    • The funds (loan) must be used for the following expenses:
        • payroll
        • rent
        • mortgage interest
        • utilities
    • Loans can be forgiven if employees must be retained on the payroll for the eight weeks immediately following the disbursement of funds by your lender. 
    • Specifically, 75% of the money must be used for payroll in order to be forgiven.
    • If a business receives the up to $10k advance as a part of the EIDL program, then subsequently borrows a PPP loan, the emergency advance amount will be reduced from any payroll cost forgiveness amounts.


  • Some banks are requiring you to have a lending relationship. 
  • It is ultimately up to the lender to decide whether to approve your loan.
  • Many lenders have been inundated with applications and have suspended intake within days of opening up applications.

FAQs - PPP Loan

You are NOT limited to your bank. Look into other lending institutions such as community banks and credit unions to apply.

EDIL (Emergency Injury Disaster Loan) + $10K ADVANCE

According to SBA.gov, its “Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.”



  • Businesses can request up to $2 million dollars in funding. 
  • Loan amount + eligibility is based on the size + type of business.
  • Repayment terms are up to 30 years but are determined on a case by case basis.
  • The interest rate is:
    •  3.75% for small businesses + sole proprietors 
    • 2.75% for non-profits and other qualifying groups
  • The first 12 months of payments can be deferred but interest will accrue.
  • The maximum unsecured loan amount is $25,000
  • This is NOT a forgivable loan.


  • The advance provides UP TO $10,000 based on the number of employees included in your initial application; one employee = $1,000, two employees = $2,000, and so on.
  • The advance will not have to be repaid whether the business is approved or denied for the loan.
  • Funds are generally made available within three days of a successful application but the SBA has said to be overwhelmed with applications and advances have been delayed for several weeks.


  • Sole Proprietor or  Small business as categorized by the NAICS Code standard.
  • Acceptable credit history; generally scores 620+
  • Must demonstrate the ability to repay the loan.


  • Go to SBA.gov here
  • Funds come directly from the U.S. Treasury; NOT a bank or other type of lender. [Please be cautious of scams + fraudulent schemes.]


  • There is no obligation to take the loan if offered.
  • It has been said that because of the number of applications for the EIDL, loan amounts have been limited to $15,000 per business for the initial two months. The SBA has not confirmed or denied this, but keep it in mind when weighing your funding options.
  • SBA has updated terms for this loan several times.
    • The advance is not being provided in 3 days; some are still pending weeks later.
    • While this program’s funds are separate from the $350B allocated to the PPP loan program, The CARES act provided $30B to this program and is said to be running low. Update: Funds for this program were deplete in a record of 13 days.
    • On April 24th, 2020, another $60 billion was allocated to this loan program.



The Federal Income Tax Filing deadline has been extended to July 15th. The extension includes 2019 tax payments and estimated quarterly payments for 2020. This has been implemented automatically, so you won’t incur late fees or have to file any additional forms. 


Self- employed individuals can defer 50% of their self-employment tax payments.

Employers can defer the 6.2% social security tax paid on payroll between March 27th and December 31st, 2020. Repayment can be made until December 31st, 2022 with 50% due by December 31st, 2021, and the remaining 50% due December 31st, 2022.

Recipients of the PPP (Paycheck Protection Program) Loan that has been forgiven DO NOT qualify.


The employee retention tax credit provides businesses who keep and continue to pay employees to claim a payroll tax credit of up to $5000 per employee. Additionally, the business would have had been forced to close up shop by a shelter in place or the like or experienced a decline in gross revenue by 50% or more in comparison to the same quarter in 2019. The credit will subsidize the employer’s portion of social security taxes (6.2%) and any surplus may be refundable. 

  • Self-employed individuals cannot claim this for their earnings.
  • Businesses who recipients in the PPP (paycheck protection program)Loan do not qualify.
  • The Employee Retention Tax Credit (ERTC) cannot be combined with other tax credits such as with any other Family and Medical Leave Act (FMLA) and the Work Opportunity Tax Credit (WOTC) or the  Families First Coronavirus Relief Act (FFCRA).


If your business has more deductions in a tax year than income, it has a net operating loss or NOL. 

The Stimulus Package or CARES Act has relaxed some limitations for businesses operating at a loss. For tax years beginning in 2018, 2019, or 2020 if your business had a net operating loss then it can now carry back the losses five years. This may be a good opportunity to improve cash flow and liquidity; an opportunity for pass-through entities and sole proprietors to benefit as well.

Additionally, the 80% taxable limit that was imposed with the new tax laws in 2017 has been lifted for years 2018 through 2020.

FAQs - Tax Benefits

Consult a tax professional for further information on your business qualifications.



The IRS will be referring to your AGI (Adjusted Gross Income) as documented on your 2019 or 2018 Tax Income filings to determine eligibility.

  • Individuals who earned $75,000 or less will receive $1200.
  • Married couples with a combined household income of  $150,000 or less will receive $2400.
  • Head of Household filers who ears $112,500 or less will receive $1200.
  • Families receive an additional $500 for each child dependent under 17.

If your income was higher than the above mentioned, all is not lost and you may still qualify for a check at a lesser amount.  Your check amount will be decreased by $5.00 for every $100.00 above the income limit. Individuals max out at $99,000, couples at $198,000, and Head of Household at $136,500.


  • No application is necessary. Expect to receive a direct deposit to the bank account on file on your last income tax filing or a paper check in the mail. They’re working on executing this in a more seamless way, but for now, this is what it is. Check out IRS.gov for updates.
  • When? Funds are scheduled to arrive in mid-April.


  • If your income is over the limit for 2018/2019 to qualify for the stimulus check, but your 2020 income qualifies you may be able to claim it as a credit on your 2020 taxes.

FAQs - Stimulus Check

While not impossible, it is highly unlikely you will receive a stimulus check payment. However, you may be able to claim it as a credit on your 2020 tax return filing.


If your income decreased because of the COVID-19 Coronavirus pandemic – you may be eligible for up to 39 weeks of weekly payments. If you can’t work because of coronavirus then you may be able to receive unemployment insurance benefit payments. receive benefits. 

Under the Stimulus Package CARES Act, the Federal Government is to provide an additional 13 weeks of payments at $600 per week. At the State level, beneficiaries will receive benefit payments for an additional 13 weeks for up to 39 weeks (usually 26 weeks).


  • Have been laid off fully or partially by your employer
  • became ill, or
  • had to care for someone else who became ill due to coronavirus /COVID-19
  • You are Self- Employed and experiencing:
    • a loss of work 
    • cannot conduct business due to coronavirus. This includes:
        • Freelancers
        • Gig Workers
        • Sole Proprietors
        • Independent Contractors
        • Consultants
        • 1099 Workers
        • Single-member LLC
        • you file a Schedule C on your income tax filings, etc.
    • And you were in business before February 15th, 2020.
  • Telecommuters, remote workers, or those who Work From Home (WFH) do NOT qualify.
  • If you’re currently receiving benefits from an employer or another stimulus program, such as Paid or Sick Leave under the Family First Act, then you do NOT qualify.


Go to your state’s department of labor site and follow the directions to apply. 


  • Every STATE will have its own requirements and qualifications.
  • The federal government has waived the requirement to actively look for employment or to register with an employment agency. 
  • The standard unpaid one week waiting period has also been suspended, so you can begin claiming weekly benefits immediately.