This was part of a series of articles that written in 2020-2021 to help Ohio cosmetologists navigate the COVID-19 pandemic. Please note that we are not currently offering any free courses.
Small business COVID-19 financial relief is here for the Ohio cosmetologist, hair stylist, nail tech, or any other salon worker affected by the Coronavirus pandemic that is also an independent contractor.
We are a Ohio cosmetology continuing education provider offering online courses for Ohio cosmetologists and nail techs. As a CE provider we do a lot of research into industry regulations. We thought we could put those research skills to use by helping Ohio cosmetologists, hair stylists, manicurists, nail techs and other salon workers understand what financial resources are available to them.
So we put together this article to point you to a unique grant that can give you a boost to help you get going again.
On a side note: We’re also offering a FREE Ohio cosmetology continuing education two-hour COVID-19 course to all Ohio cosmetologists and nail techs. That fulfills the State’s 2-hour Safety and Infection Control requirement this year.
Anyways, below is some info about the grant that may help you get some financial relief until things get back to normal — but first a quick disclaimer:
We are cosmetologists. We are not attorneys and are not providing legal advice. What follows is our own personal understanding of what resources are available and how they relate to salon workers. We do not guarantee that our understanding is accurate and we can’t promise that this information applies to your specific situation. Always visit the Small Business Administration for up-to-date CARES act loan information. Always see an attorney for legal advice.
The CARES Act and Ohio Cosmetologists working as Independent Contractors
Under the CARES act anyone working as an independent contractor eligible for grants of $1,000.
Who’s an independent contractor? Did you file a 1040 with your taxes? Then you’re probably an independent contractor. If you filed a W-2 then you probably are not an independent contractor.
The application process is a simple form requesting an Economic Injury Disaster Loan (EIDL) — which gives you an advance even if the loan is not given. They are sometimes referred to as “advances” but are actually grants that you do not need to pay back.
Another way to think about it is that you’re applying for a loan but it comes with a grant (money you don’t need to pay back) even if you don’t get the loan. You do NOT have to get the loan and can just get the grant. That’s what we did!
-> Go to the SBA Site and Fill Out an Application
Fill out the grant application at the Small Business Administration’s EIDL site here: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
It only took us about 10 minutes. See below for the exact steps we took.
How Unemployed Hair Stylists Working as Independent Contractors Might Fill Out the Form
Tips for independent contractors to fill out the form:
- First question, check the second box as you are applying as an independent contractor or sole proprietorship.
- Add your Social Security number if you are applying as an individual independent contractor.
- You can estimate gross revenues for the last 12 months based on what happened in 2019. Cost of goods sold means your expenses incurred as an independent contractor.
- Put your name for “Owner” and “100” percent owner.
- It will ask for the date the business was established — estimate if you don’t have the exact date, but make sure it was before January 31, 2020.
- Enter your bank account to which you want the grant money direct deposited. You need the name of your bank, the account number (the middle number at the bottom of your checks), and the routing number (the number at the bottom left of your checks).
- For your business phone number, put your cell number if you need to.
- Answer “no” to the ““Is your business owned by a business entity?”” if you are an individual owner.
- For your business name, just enter your individual name if you don’t have a business name.
- Check the box that says you want to apply for the $10,000 grant (although it will only be $1,000 for independent contractors).
How Long Until I Get the Money?
We got ours in about 10 business days.
Check your bank account regularly because the SBA will directly deposit the grant money into your bank account without notifying you.
Do I Need to Accept an Economic Injury Loan in Order to Get the Grant?
Nope you can take the grant and reject the loan.
Do I Have to Pay Back the Grant?
No you do not. It’s free and clear under the CARES act.
Thanks for Reading
We hope this information was helpful and that you and your loved ones are safe.
Remember that if you need CE hours for inactive licenses our courses are approved for Ohio cosmetology continuing education amnesty.
— Liz and John