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Do Bloggers Qualify for Small-Business Relief Programs? It Depends

As the COVID-19 pandemic continues to affect businesses worldwide, many are turning to loans for help. As a blogger, though, you may question whether you qualify for a small-business loan. Unfortunately, the details can be confusing and create uncertainty. There are certain requirements you’ll have to meet. 

Now, more than ever, businesses need money. With shutdowns and rising cases across the United States, certain companies fear closing their doors forever. Finding the right loan can help them stay afloat, though — which is why some bloggers are seeking to qualify for similar loans. 

Who Does Not Qualify?

A small-business loan requires having a means of revenue in some capacity. Whether it’s from selling products or ad partnerships, if your blog brings in money, you can consider it a business. This revenue divide brings up the question of whether your venture is a hobby or a company

If you aren’t making money from your blog or are just running it for fun, you will likely not qualify for a small-business loan. The IRS will reject your request. 

If your blog does generate a profit, though, then you should be looking into different loans and licenses. 

Who Qualifies? 

For the government to consider your blog to be a small business, you must meet several requirements. 

If you are self-employed and your blog is your job, you need financial statements to prove your income, tax returns, and personal cash flow, as well as any information regarding profit and loss. However, if your blog is an addition to a current enterprise, you’ll also need your business’s overall financial statements. 

Additionally, you need the right licenses. The preliminary step is establishing how your company makes money. Whether through ads, affiliate marketing, selling goods or services, or using sponsored content, you have several paths for generating money. Essentially, if you put the income you get from your blog on your tax returns, then it can qualify as an enterprise. 

A business license is usually a requirement in most states — but not necessarily for bloggers. You can check with your state government to determine if you need one. Additionally, you must have a sales tax permit if you are selling goods or services. 

Keep in mind that one of the key requirements for qualifying is the business’s ability to pay the loan back. Make sure you can cover all your bases. 

If you have these things in place already, then you will likely qualify for a small-business loan. If your blog generates income but you don’t have the proper paperwork, then that will be your first step. 

The COVID Factor

The pandemic has been ruthless on certain companies and individuals trying to make ends meet. While the government has passed bills providing aid to small companies, it’s not enough for some. Applying for COVID-19 small-business loans has now become the norm.

Bloggers have more of a chance qualifying as a full business with COVID-19 affecting everyone. Classifying a company versus a hobby can sometimes come down to calculating uncontrollable losses. Since the pandemic is still devastating certain areas, bloggers can use it as a reason to qualify for a loan. 

Applying to loans specific to the pandemic is a helpful resource for bloggers during this time. The more you widen your search, the more likely it is that you’ll receive assistance in some form. 

Business Blogging Relief

While blogging as a hobby may not qualify for a small-business loan, doing so in a professional setting will. Revenue is the key difference between the two. 

Additionally, bloggers should reach out to their state to see which COVID-19 loans they can apply for. Now is a time where businesses need relief — bloggers must have access to the same funds as other enterprises. 

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