Rapid Response: Relief funding & crowdfunding in a crisis w/Karen Cahn of IFundWomen

CARES Act Overview

The CARES Act, a $2.2 trillion stimulus package, offers financial relief to businesses and individuals affected by COVID-19. Karen Cahn, CEO of IFundWomen, highlights its significance for the startup and gig economies, emphasizing its inclusivity for sole proprietors and 1099 employees 1. She shares her experience navigating the application process, noting the initial confusion and the importance of having financial documents ready 2. Karen's proactive approach included seeking expert advice through social media, which underscores the need for accurate information in leveraging the Act's benefits.

   

Financial Aid Application

Applying for financial aid under the CARES Act requires careful consideration of loan types and eligibility. Karen advises prioritizing the Paycheck Protection Program (PPP), which is accessible to a wide range of entities, including nonprofits and independent contractors 3. She cautions against rushing into SBA loans due to collateral requirements and potential debt risks, especially for businesses not generating revenue 4. The application process has been complicated by the need for banks to adapt to online systems, causing delays and anxiety among applicants 5.