Stimulus Aid for the Self-Employed – What Was Offered and What’s Next?

When the COVID-19 pandemic hit, it didn’t just affect big companies and full-time workers. It also caused major income loss for millions of self-employed individuals—freelancers, gig workers, and small business owners. For many of them, there was no regular paycheck or unemployment safety net. The U.S. government realized this and introduced special stimulus aid to help. From direct payments to expanded unemployment benefits, the government aimed to support those who usually work for themselves. But now, years later, many are wondering: What exactly was offered, and is there more help coming in the future? This article explains the major programs that supported the self-employed during the pandemic and what could come next.

Relief Programs for the Self-Employed: What Was Offered

The U.S. government launched several programs between 2020 and 2021 to help self-employed individuals survive the economic shock caused by lockdowns and restrictions. Here are some of the key benefits and stimulus aids that were offered:

Economic Impact Payments (Stimulus Checks)

Self-employed individuals, like all U.S. taxpayers, received up to three rounds of stimulus checks. These payments were based on income levels. If your annual income was under a certain limit, you received up to $1,200 (first round), $600 (second round), and $1,400 (third round).

Pandemic Unemployment Assistance (PUA)

Normally, self-employed people don’t qualify for unemployment benefits. But with the introduction of the PUA program, freelancers and gig workers became eligible for weekly unemployment payments. Many received up to 39 weeks of benefits, plus extra federal payments through programs like FPUC (Federal Pandemic Unemployment Compensation), which added $600/week, then later $300/week.

Paycheck Protection Program (PPP)

The PPP loans were not just for businesses with employees. Self-employed individuals could also apply, using their net income as the basis for the loan amount. These loans were forgivable if used for business-related expenses like rent, utilities, or paying themselves.

Economic Injury Disaster Loans (EIDL)

The SBA also offered low-interest EIDL loans, plus EIDL advances (up to $10,000) that did not have to be repaid. These were designed to help small businesses, sole proprietors, and contractors keep going during the worst months of the pandemic.

Tax Relief

The Self-Employment Tax Deferral allowed freelancers to delay paying a portion of their Social Security tax. Additionally, the Sick and Family Leave Tax Credit allowed self-employed people to claim tax credits if they were sick, in quarantine, or caring for someone with COVID-19.

While the programs above provided critical support, most of them have now ended. As of 2024, no new stimulus packages are planned. However, the pandemic showed the government that self-employed workers need better long-term support systems.

Many experts are pushing for permanent reforms like:

• Making unemployment benefits available to gig workers during future crises.
• Expanding healthcare and paid leave options for freelancers.
• Offering small business grants to boost recovery for solo entrepreneurs.

In the meantime, self-employed people are encouraged to stay updated with the IRS and SBA websites, join professional associations, and prepare for possible policy changes.

The past few years proved how essential independent workers are to the economy—and hopefully, future programs will offer better protection and recognition for their efforts.

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