Big News For Uber and Lyft Drivers: Updates on Unemployment

If you’re a rideshare or delivery driver right now, you may be confused by all of the unemployment programs and stimulus bills approved by the government. Is everyone getting money – or are only large corporations actually getting money? Senior RSG contributor Jay Cradeur breaks down what’s going on right now for independent contractors and some good news from your fellow drivers.

It continues to be tough out there for rideshare drivers.  The government has promised to support the little guys, the independent contractors, but all the news seems to emphasize that companies like Shake Shack and Ruth’s Chris Steakhouse are receiving the bulk of the money.

Although we drivers are starting to see some movement, it remains slow, unreliable, and certainly not predictable. The Covid-19 pandemic started back in February. My last day of driving was February 2.

Next week will be three months since this all began and, to date, all I have received is a $1,200 stimulus check. No EIDL. No PPP loan. No Unemployment Benefits.

In this article, I will share with you the latest news we have and include updates from several of our readers and viewers who have started to receive some funds.

Quick links:

We walk you through how to apply for your Pandemic Unemployment Assistance (PUA) here:

 

The Coronavirus Pandemic Hits the US

Everything hit the fan in February. Some drivers stopped driving, some kept driving. Other drivers got sick, and many stayed healthy.

Then on March 27, the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed and we, the drivers, were told we could receive money in 4 different ways:

  • $1,200 Stimulus Check in April
  • $10,000 EIDL Grant (later reduced to $1,000 per employee)
  • Paycheck Protection Program (PPP) Forgiveable Payroll Loan (2.5X your monthly payroll)
  • Pandemic Unemployment Assistance (PUA) – Unemployment of your state’s weekly amount (39 weeks) plus $600 bonus (16 weeks)

Since that time, several things have happened.  The $1,200 stimulus checks seem to be going out and most folks have received their money. Good news.

Not so good news is the Small Business Administration (SBA) ran out of money for the EIDL and the PPP programs on April 15th.

As you can see from the images above, both funds show “Notice: Lapse In Appropriations.”

Most of the funds were used for large businesses with the average loan being $250,000.  That is hardly 2.5 times any Uber or Lyft driver’s monthly payroll.  

While all that was transpiring, each state, working independently, is scrambling to integrate independent contractors into their existing unemployment system.  Or, in the case of California, the state is building an entirely new website to handle all the PUA applicants.  The new website is going to launch on Tuesday, April 28th, according to the state’s website.

What’s Going on Right Now?

On Friday, April 24, President Trump signed into law an additional relief package designed to replenish the EIDL and PPP programs.

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When we break down the numbers, we see that the majority of the relief package is geared toward the small business programs.

What we don’t know is how much of that money will actually go to small businesses and how much will go to big business, as we saw with the CARES package.

1. EIDL (Economic Injury Disaster Loan) Grant

I just checked the EIDL website and it says right there in black and white:

“Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.”

This would seem to indicate that you don’t need to reapply if you applied before the funds ran dry.

I have applied on three different occasions based on a recommendation from an experienced financial planner.  I also know one of our readers applied a second time and was approved the second time (not the first) and received a $1,000 advance.

It’s up to you.  You can monitor the website and when you see the program is accepting applications, you can go for it.

I will sit this one out unless I hear of people getting approved upon re-applying.  To get to the website, you can click this link.   If you do get approved, you will get an email that looks like this:

Several of our readers have received the $1,000 advance. Take a look at some comments from a recent Rideshare Guy Youtube video:

2. Paycheck Protection Program

The Paycheck Protection Program is a great source of confusion. It is unclear what paperwork is required. The application process is far more detailed than the EIDL advance program.

At first, it was not available to independent contractors.  Then on April 10, it was available to us.

In the beginning, you had to go through your own bank to apply.  Then you were allowed to use online Fintech companies even if you did not have a previous relationship.

However, this is where the bulk of the funds are being allocated.  You can apply through your bank, or if you prefer, you can apply through a Fintech Company.  I recommend you Google “Fintech companies for PPP” and you will see a list and plenty of articles to explore.

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From the list above, you can check out the following among several others:

  • Paypal
  • Intuit Quickbooks
  • Square (to current members)

If you get processed, you may receive an email like this:

I still have not been approved, although funds have been allocated to me. This is the most recent email I received from the loan underwriter:

Ideally, I just need to sign the loan documents and provide my checking account information. I will keep you posted.

Unemployment for Independent Contractors

For most of us, this is the big one.  There is quite a bit of money allocated to us, and this one would seem to be the easiest one to get.  Several states are now accepting applications from independent contractors. Here are several examples of states that have gotten their acts together, including:

Virginia

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Massachusetts

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One of our loyal readers shared this with us:

Michigan

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Here is some more good news from readers:

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Here are some comments from the same Youtube Video:

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As you can see, drivers from Illinois, Missouri, and Massachusetts all seem to be getting employment funds. It’s not currently looking as good for drivers in Florida, but it could be that the system is working through applications.

California is supposed to open up for Independent Contractors on April 28.  This is what their website is telling us:

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I went ahead and calculated how much drivers should be entitled to if you stopped working the first week of February (in California):

That is significant.  Some states offer more per week while others offer less.  My advice is to stay close to your state’s unemployment website and apply at your first opportunity.

Key Takeaways

Every day we are learning more about the status of government support for rideshare drivers and gig workers around the country.  It is encouraging that some drivers are already getting some of that PUA Unemployment money.

Even though it has been over two months since many drivers stopped driving, something is better than nothing. If you can wait it out, it appears drivers will get all the money that they are entitled to based on when they stopped driving.  My fingers remain firmly crossed.

In the meantime, I am taking this time to build an additional Plan B.  It is during times like these that we appreciate the prescient wisdom of creating a Plan B, because for many of us now, Plan B has become Plan A.  Good luck and stay safe out there.

Drivers, what questions do you have about unemployment assistance? Do you have good news to share with us?

-Jay @ RSG

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