Unemployed due to COVID-19? Consider free options before taking out a loan
If your employer has been forced to shut down due to the coronavirus outbreak, there’s relief available. Before you apply for a loan, consider these options first:
- Unemployment benefits. If you were laid off, you’re likely eligible to apply for benefits by filing a claim with your state’s unemployment office. The second stimulus bill removes the seven-day waiting period for benefits, and you could be eligible for up to $300 more per week as well as a longer benefits period.
- Disability insurance or benefits. If you already had a disability insurance policy through your employer, you might be able to receive some funding if you’re unable to work. You might also qualify for Social Security disability benefits. Note that most disability insurance plans have a waiting period, and Social Security disability benefits may take more than one appeal to qualify for.
- Grants and interest-free loans. Lenders, your local government and private organizations might offer free or interest-free funding if you lost your job due to the coronavirus outbreak.