Jenny Dorsey — ICE Chef

Infrared Cooking 101

aday — Fri, 22 Jan 2021 15:34:47 +0000

Infrared Cooking 101 aday Fri, 01/22/2021 - 10:34 Impress at your next barbecue with infrared cooker technology January 22, 2021

By Jenny Dorsey — ICE Chef

In recent years, you may have seen the term “infrared” applied to cooking technology, especially in the realm of grilling. In my latest book, “The Infrared Grill Master,” (Ulysses Press 2020), I explore what infrared cooking is, how it differs from other methods of cookery, and if it's worth the hype. Here's a preview.

What is infrared technology?

In short, the technology behind infrared cooking is the use of infrared radiation (IR), also referred to as infrared light: a type of electromagnetic radiation (or energy-carrying waves, which microwaves emit) generally not visible to the human eye. It’s a type of energy source that’s commonly found in nature. For example, more than half of the sun’s energy arrives on Earth in the form of IR that we never see and is then absorbed by objects we perceive to be a certain temperature (like the hot sand on the beach on a sunny day).

What is infrared cooking?

The easiest way to truly understand the power (and limitations) of infrared technology with cooking appliances is to first delineate the various types of heat transfer in cooking. The three main types are conduction, convection and radiation.

Conduction cooks the desired object through direct contact with a heating element. For example, sautéing some garlic in a skillet over the stove. The garlic is the object, the skillet the heating element, which is heated directly by the electric or gas stove. The oil used in this instance is not considered the main heating mechanism cooking the food (unlike in convection, see below) but a supporting material to help the food cook more evenly and perhaps add flavor.

Convection cooking is the act of using a secondary medium, such as gas or liquid, to cook food. For example, deep frying submerges the object in large quantities of hot oil to cook it, and boiling does the same in water. Steaming, smoking, baking and roasting utilize hot air. Within this category of cookery, it’s important to note that liquid convection is more powerful than gas convection, and the denser the fluid is, the faster it heats food — this is because the heat capacity of each medium is different. That's why we can reach into a 350 F oven to pull out a finished cake, but definitely cannot sink our hands into boiling (212 F) water to grab a potato. Most concisely explained: The temperature of something is not the same as the heat it can emit.

Finally, radiation cooking is when a heat source like fire, gas or energy waves directly contact the food rather than a heating element like a pan or grill grate. Broiling is the easiest example to visualize: Food is cooked – often very aggressively – by a heat source above it. Cooking food in a spit over a campfire is also a good example.

The easiest way to think about heat transfer is by asking the question: What’s in between the food and the heat source?

Should I use infrared radiation to cook my food?

There are two major benefits to using infrared radiation for cooking, most notably with grilling. The first is the directness of the heat source: Since infrared burners use specific ceramic, metal or glass to minimize the output of convection heat, the grill concentrates only radiation heat on the food. Infrared grill companies say this prevents the “drying out” of food on the grill from the convective heat (consider how deep-frying a chicken will dehydrate and crisp up the outsides of the chicken while cooking the interior), some claiming food retains “up to 35%” more of its juice, but it is difficult to objectively test this metric. However, the directness of infrared radiation is objectively true: Its energy waves can move in all directions and are not affected by air turbulence (such as outside wind or the varying patterns of hot air inside a closed grill) until the heat reaches a solid object. In short, infrared radiation ensures food is heated via radiation and not convection, and thus provides far more even, consistent heat across the entire grill.

The second, and arguably more publicized, aspect of infrared grilling is its efficiency and the temperature of the heat source. The technology behind infrared ceramic, glass, and metal plates and rods turns what otherwise were much less powerful sources of radiant heat (generated from a gas or electric source) into far more concentrated energy waves and radiant heat at far higher temperatures (some grills boast up to 1,000 F). Especially for instances of meats meant to be some version of rare at the center, infrared grills cook extremely quickly due to intense and efficient heat, minimizing the amount of time the food spends on the grill and ensuring a very lightly cooked center. This also helps keep infrared grills mostly smokeless, because stray fats and liquid from the food do not fall directly on the heat source (like with charcoal grills or direct gas), and makes for easier cleanup. Infrared grills also preheat much faster than other options.

Is it safe to cook with infrared?

The current research on infrared radiation is that it is not powerful enough to alter the molecular structure of food cooked using it as a heat source, and its food results are safe for human use and consumption. So far, there have been no links found between infrared grilling and cancer, but it’s important to note that there have been links found between food cooked at high temperatures (especially for a long time) and carcinogenic compounds in meat, which is not limited to infrared cooking.

According to the National Cancer Institute, meats cooked at high temperatures above 300 F or those cooked for a long time (especially at high temperatures for a long time) tend to form more heterocyclic amines or HCAs, while cooking food that exposed it to smoke produces polycyclic aromatic hydrocarbons (PAHs). Both of these compounds have been found to sometimes cause cancer on animals during lab experiments, and the World Cancer Research Fund/American Institute for Cancer Research recommends limiting consumption of processed meats, but there aren't specific guidelines on how much HCA and PAH should be avoided.

This is all to say, moderation is key – with infrared cookery and food in general. Hopefully, this guide has given you the primer you need to go forth and try ways of infrared cooking that best suit your lifestyle!

Study the fundamental heat methods in Culinary Arts at ICE.

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Why Hot Lettuce Should Be in Your Weeknight Routine

aday — Tue, 08 Sep 2020 17:03:25 +0000

Why Hot Lettuce Should Be in Your Weeknight Routine aday Tue, 09/08/2020 - 13:03 Use a wok and XO sauce to stray from salads with excess lettuce. September 11, 2020

By Jenny Dorsey — ICE Chef

A few months ago, I picked up a CSA box filled to the brim with lettuce (and lettuce-like leafy greens). Romaine, red leaf, green, frisee, escarole – you name it. I came home, upended the entire box on my counter, and wondered how long it would take me and my husband to consume so much lettuce.

As someone who isn’t particularly fond of salads, the first few pages of Google yielded very few recipes that sparked my interest. Sure, I could make a half dozen versions of salad dressing, but I knew deep down it was unlikely I would make it past the first two. So I turned to trusty Instagram to gather ideas, captioning a short video of my 4-foot-long prep table covered with lettuce: “So … what should I cook with all this lettuce?” I sent the same note to my mother via WeChat, a messaging service popular among Chinese Americans.

My friend Alisha and my grandmother came to the same conclusion – and fairly quickly at that. “Hot lettuce!” I read from them both. “Wok-tossed lettuce, it’s the best!” Alisha said. “Cao yi cao!” (saute it!) my grandmother agreed. And with that, the technique was settled, which only left the question: What kind of sauce?

The easiest version would be a sprinkle of garlic, perhaps a spritz of sesame oil, too. But I seized the momentum of cooking lettuce for the first time (I never thought to heat lettuce before!) and ventured down the path of making XO sauce. Up until then, I had been too nervous to try my hand at XO, a legendary condiment hailing from Hong Kong, where it originated in the 1980s. It is named after the Cognac term XO (or “extra old”), to showcase the many rare and special ingredients that make up its layers of umami. (In fact, packaged XO sauce also uses Cognac-like branding and messaging in its marketing.)

As I’ve written about before, extracting and combining umami from different protein sources results in uniquely flavorful final products. In XO sauce, the base trio is generally dried scallops, dried shrimp and Jinhua ham (a dry-cured ham from the city of Jinhua in the Zhejiang province), alongside aromatics like onion, garlic and red chilies. It is delightfully chunky, offering a textural contrast alongside richly sweet and savory notes.

While XO is certainly not the only sauce you can put on sautéed or stir-fried lettuce, it will likely solidify your love for hot lettuce once you do have them together. With my own derivative of XO in the refrigerator, I find that even a dozen heads of lettuce can’t hold me over until Saturday. Just a quick chop, a very hot wok (or cast-iron or heavy-bottomed pot) lubricated with neutral oil (make sure to pick one with a high smoke point), and you’re well on your way to a fantastic side to eat with basically anything.

Every chef has their own XO recipe, so after gaining some comfort making more traditional recipes first, I forged ahead with some new modifications and additions. The below is my go-to recipe, now enough of a departure from the baseline XO I’ve dubbed it “umami sauce,” inspired by the principles of XO. Feel free to add your own changes to suit how you like to cook and eat (just don’t misrepresent your final product, please), and keep on spreading the virtues of hot lettuce and XO.

Umami Sauce (an XO-Inspired Sauce)

20 grams dried shrimp
25 grams dried scallops
1 1/2 teaspoons whole coriander seed
1/2 teaspoon whole fennel seed
1/2 teaspoon whole caraway seed
5 dried red chiles (optional)
2 fresh bay leaves (optional)
2 cups neutral oil
4 ounces pancetta, diced
60 grams shallot, minced
20 grams ginger, minced
25 grams garlic, minced
Soy sauce, as needed
Maple syrup, as needed
Fish sauce, as needed
1 cup unsalted chicken or dashi stock
Kosher salt, as needed
White sugar, as needed
Vinegar of choice, as needed (I use white balsamic vinegar)

Hydrate the shrimp and scallop in boiling water until softened, approximately 5 minutes.
Strain shrimp and scallop and reserve liquid. Transfer to food processor and pulse 5-6 times or until mixture takes on a lightly stringy quality.
Coarsely grind all spices.
Heat oil in heavy-bottomed pot or wok until ~300 F. Lower heat to medium to medium-high.
Add pancetta, and fry for 2-3 minutes or until golden brown.
Add shrimp and scallops. Fry for another 3-5 minutes until medium brown.
Add all spices, bay leaves, and red chiles and let fry 1 minute.
Add shallot, ginger, garlic. Fry 2-3 minutes until golden brown.
Add soy sauce, maple syrup, fish sauce, starting with ~2 tablespoons of each.
Add chicken stock and reduce heat to medium.
Let cook and bubble 10-15 minutes, or until most of the stock has evaporated.
Taste and season with additional salt, sugar, and vinegar of choice.
Remove from heat and let cool 10 minutes.
Transfer to glass jars. For best results, let flavors meld overnight.

Read more about sauces and soups, and study global cuisine in Culinary Arts at ICE.

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Shellfish substitute for XO Sauce

Submitted by Judi on September 16, 2020 11:45am

I need to avoid shrimp & scallops, can I use tuna, salmon or other fish?

I have never tested it with…

Submitted by aday on October 12, 2020 5:01pm

I have never tested it with any of that, but I think that the umami of fish sauce could be a decent substitute! — Chef Jenny

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Why Your Food Needs Bitterness

aday — Thu, 25 Jun 2020 21:11:33 +0000

Why Your Food Needs Bitterness aday Thu, 06/25/2020 - 17:11 Chef Jenny Dorsey makes the case against counteracting bitterness in food suggesting chefs master the nuance of layering the flavor. June 25, 2020

By Jenny Dorsey — ICE Chef

Bitterness is a critical component of building intensity and complexity of flavor, but here in the U.S. we often shy away from using bitterness to accentuate our food and instead focus on tired adages like “fat is flavor” when attempting to build nuance into dishes. I’d like to divulge why bitterness is so key to developing complexity in finished foods, with a short guide on different ways you can play with the styles, levels and textures of the taste.

Why is bitter an important part of flavor? To start, our taste buds are extremely attuned to the taste of bitterness, especially at the backs of our mouths. Scientists theorize this evolved as a “last chance” button of sorts to detect potentially poisonous foods and allow us to physically eject them from our bodies, as almost all toxic plants are bitter (which is also why poisonous substances like lead have been doubly harmful – not only do they attack our bodies but because they are sweet, children can voluntarily eat or lick lead-based paint). This means that we don’t need to use a lot of bitterness for most people to discern it on the plate – a little goes a long way and makes a big impact.

Also very interestingly, bitter is one of our five primary tastes (six if you count fat, seven if you count spice), and it balances out umami – similar to how sourness helps neutralize fattiness. You can increase umami and bitterness as you cook, knowing that as long as the two are in sync, the final product will taste balanced. In my experience, incorporating a bitter note is a big part of the “craveability” factor that many of us chefs are striving for when we cook.

Bitterness also helps cleanse our palates; in a way, it’s like taking a whiff of coffee beans in between wines during a tasting. When I think back to the times I’ve tasted something very delicious but just can’t stand more than a few bites before my taste buds are overwhelmed (e.g. most commonly when I eat truffles, wagyu or caviar), I find it’s because there’s just not enough bitterness present to make me want more. While it’s not the flavor you want to blanket the food, I liken it to little boosts of adrenaline for your taste buds to keep them stimulated while reformatting your palate back to neutral so the next food still feels interesting as we continue to eat. Maybe this is why naturally caffeinated items are bitter?

If you’ve seen my last post about dividing spices into top, middle and base notes, you can apply that guiding theory to how you cook and layer flavors throughout the process. When cooking, think about when and how your bitter component is being incorporated, as that will likely determine when that same bitterness will spark your diner’s taste receptors. Sprinkling a warm, rich, bitter ingredient like cacao powder on top to finish a dish versus braising meat in a juicy but tannic red wine for hours feels different because the ingredient’s bitterness reaches our tongues in varying stages when eating. Also consider how that bitter ingredient is cut: large strips of collards as a side yields different results than having thin chiffonades incorporated throughout a dish.⁣

When eating, consider what hits your tongue first vs. last. What flavors are present in each of these stages? Where the bitterness “sits” in a dish is a manifestation of how it independently smells and tastes (e.g. celery seed is a middle note, dill seed a base note) and when and how it was incorporated. Do you want subtle bitterness dispersed evenly throughout a soup or concentrated at the beginning or end of the eating experience? If you’re creating a plated dish, is there bitterness in every component or accents like a few dots of a fluid gel?

I’ve put together a short chart of bitter ingredients that you can experiment with. It is certainly not exhaustive but will hopefully help turn your attention to some interesting new components to play with the next time you cook. Why not use a whole lemon when braising to infuse some of that bitter pith into the foundation of that dish? What about spiking a classic vodka sauce with a touch of bitter liqueur instead? Perhaps black tea can be the secret ingredient of your next spice blend! Once you master the nuance of bitterness, you’ll see the boundaries of deepening flavor profiles will expand exponentially.

Gain the foundational cooking skills to layer flavor in Culinary Arts.

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A Sound Way to Organize Your Spices

aday — Tue, 09 Jun 2020 23:07:09 +0000

A Sound Way to Organize Your Spices aday Tue, 06/09/2020 - 19:07 ICE alum Jenny Dorsey (Culinary, '12) describes her method for developing spice blends. June 9, 2020

By Jenny Dorsey — ICE Chef

There are hundreds upon hundreds of spices in the world, which can make them feel daunting to categorize effectively in your kitchen. Understanding how and where they fit in relationship with one another can be difficult: How do you describe cinnamon in relationship to, say, mustard seed? How do you know what sort of spices to pair together? In what ratios? For what applications?

My method for the last few years has been through notes (hence the punny title of this post, heh heh). Specifically, tasting them and mentally shuffling spices into top, middle or base notes. Much like the notes of a song, I think of spice notes as something that layers together to make the whole more than the sum of its parts.

Top notes are the aromas and flavors that will hit your nostrils and tastebuds first — they are typically very bright, juicy, occasionally tart — and stay at the top of your senses while eating the entire dish. They balance out hefty meats, like braised lamb, and also complement heartier root vegetables. I find top notes are often underutilized for their ability to contrast rich and fatty flavors and textures. In addition to utilizing vinegars and citrus, consider spices like sumac, coriander seed and pink peppercorn. These can be just as zingy while adding flavor to a spice rub or marinade.

Middle notes are those that contain a hint of brightness but mellow out to something slightly more neutral and warm. Because they provide structure and balance to the dish, almost every dish contains at least one spice in this category (often in the form of black pepper), if not several. Middle notes shine especially well when accented with top and base notes, which can come either in spice form or a different type of ingredient (e.g. ginger or chocolate).

Base notes are often the flavor that lingers in your mouth as you finish a dish. They smell and taste warm, toasty, hefty, sometimes smoky and sit heavier on the tongue. They build up the foundation of the dish, round out the flavor of the main ingredient and prop up the top and middle notes. While the American palate seems to enjoy piling a lot of base notes together (see: pumpkin spice mix), I personally think it’s very important to pair base notes with lighter accents to avoid a dish tasting “damp,” thick or cloying.

My favorite part of using this system of notes for spices is how accessible it is for then confidently making spice blends. If you’re still getting familiar with combining spices, I recommend trying out two ratios as a starting point. A 1:1:1 ratio of top, middle and base spices will be nicely balanced and versatile for most applications while a 3:2:1 or 1:2:3 ratio allows you to pronounce top or base notes for a specific dish. Once you’ve made some blends and understand how to suit your own fancy, experiment with different ratios depending on what you like! You can also use these ratios to even out your spice collection the next time you go shopping: Just take stock of what category your current spices are clustered in and try to add spices of different notes to complement them.

I encourage buying spices whole when possible and grinding in small quantities for spice mixes because pre-ground spices will go stale much faster. All spices (ground and whole) lose potency over time and do expire, so make sure to refresh your spices roughly once a year if you don’t use them frequently.

To get started on this system of categorizing spices, please refer to these two charts. They are not exhaustive but will provide you a good set of all notes so you can begin to mentally chart spices for yourself. Remember that this is absolutely a subjective exercise, and you may also move spices into categories that are different from mine. That’s okay, and in fact, great – go forth, customize and maximize everything from your spices!

Explore cooking with spices in Culinary Arts.

Spices Ingredient Exploration ICE Chef

Fun and informative post!

Submitted by Clara Park on June 12, 2020 10:19am

Hi Chef Jenny,

Great post! Lots of good nuggets of information and observations. Simple and elegant way of breaking down the how-tos of spice blending. I'll tell you what I want, what I really, really want...more spices everywhere! Hope you're well! -cp

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Financial Planning for Small Businesses During COVID-19

aday — Sun, 12 Apr 2020 19:56:40 +0000

Financial Planning for Small Businesses During COVID-19 aday Sun, 04/12/2020 - 15:56 ICE alum and entrepreneur Jenny Dorsey (Culinary, '12) shares her findings from navigating taxes, loan forgiveness and family leave. April 15, 2020

By Jenny Dorsey — ICE Chef

As an independent contractor and the founder of a nonprofit, I’ve been learning a lot about navigating personal finances and small business ownership among the circumstances of the COVID-19 crisis, reading information across the internet. Here's a Q&A for fellow food business entrepreneurs.

Can I apply to both the EIDL and the PPP?

Yes, you can apply to the EIDL and the PPP, but the funds cannot be used for the same purposes. If you receive the up to $10,000 grant as part of your EIDL, that amount will be deducted from the loan forgiveness amount allowed in the PPP.

If I receive an EIDL grant or have money forgiven in my PPP, is that taxable?

No, typically this counts as taxable income but the government has waived that for now.

Can I claim the Employee Retention Credit and receive a loan under PPP?

No, unfortunately, they are mutually exclusive.

Can I defer my payroll taxes and receive a loan under PPP?

Yes, you can receive a loan under PPP but you cannot receive any loan forgiveness, even if you spend it in the forgivable categories.

How much of the PPP is forgivable?

Up to 100% of the entire loan is forgivable as long as it’s spent on the “forgivable” categories as outlined by the CARES Act. However, at least 75% of this must be payroll costs in order to keep the forgiveness amount intact and your employee count must stay the same (see below).

Can I still receive loan forgiveness under PPP if I’ve had to lay off employees?

Yes, but your amount of loan forgiveness allowed will be reduced if your employee count is reduced. You have until June 30, 2020 to reinstate any employees you may have laid off or furloughed previously.

How much do I have to pay for additional sick and family leave policies?

Under the updated paid sick leave laws, full-time employees can receive up to 80 hours of paid sick leave, part-time employees receive the amount based on the average hours they work during a two-week period. There are monetary caps on how much employees can reach per day and what the total is over the entire period.

Under the updated paid family leave laws, all employees that have been employed at least 30 days and cannot work remotely while caring for children whose schools or care facilities have been closed due to COVID-19 are entitled to up to 10 weeks of paid leave.

You can receive a tax credit for the full amount of the qualified sick leave or family leave, which also includes the payroll taxes associated with that leave.

There are also exceptions for this paid leave for businesses with under 50 employees.

Does my business interruption insurance cover COVID-19?

Unfortunately no, most business interruption insurance policies do not cover COVID-19. However, there is some legislation that has been proposed in New York, New Jersey, Massachusetts and Ohio to require insurance companies to cover businesses retroactively, so you can call your representatives to show your support if you so choose.

Do I have to pay rent, utilities, electric, gas?

Many cities have put stays or moratoriums on evictions for non-payment from residential and commercial tenants. However, you are still liable to pay the rent whenever the rule is lifted and you may be charged interest. (Landlords can also technically pursue legal action if they want to.) If you really cannot afford rent and you are considering not paying this month, make sure to notify your landlord in advance and communicate how you’ve been impacted by COVID-19 so the two of you can figure out a payment plan. (Worth noting: The “force majeure” clause on most leases will not cover COVID-19 as it is not physical damage.)

Many utilities, gas and electric providers have said they will suspend shutoffs due to non-payment and waive late fees. You still owe this money, but you should definitely contact your provider to ask for possible deferrals to manage the cash exiting your business. (Worth noting: If these are automatic debits from your bank account, you may need to un-link your account.)

Is my business tax filing also extended?

No, only federal business income tax has been extended to July 15, 2020 (check to make sure that’s the same date as your state). However, you can call your local tax authority and ask for an extension – most are purportedly open to this right now.

Can I sell gift cards for my business for customers to redeem later?

Yes! However, make sure to read up on escheatment laws that denote the requirements for turning over unclaimed property (e.g. gift cards) to the state after a certain amount of time. Gift cards can become a real financial (and legal) headache if not registered and accounted for properly.

I hope this is helpful! For a deeper dive into the topics above, my nonprofit has more extensive resources, detailed here.

Read more about personal finances amid COVID-19 and see resources for restaurant industry workers.

Restaurant & Culinary Management ICE Entrepreneurs

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Personal Finances in the Time of COVID-19

aday — Sun, 12 Apr 2020 18:36:52 +0000

Personal Finances in the Time of COVID-19 aday Sun, 04/12/2020 - 14:36 ICE alum and entrepreneur Jenny Dorsey (Culinary, '12) breaks down the details on rent, loans and taxes for hospitality professionals. April 15, 2020

By Jenny Dorsey — ICE Chef

Navigating the chaos of COVID-19 the last few weeks has been especially tough for us in the food and hospitality industry. Many, if not most, of us saw our work grind to a standstill – I had many of my projects halted and future contracts canceled or put on indefinite hold. With this uncertainty of the future (and my next paycheck), I channeled my energy towards learning about all my options regarding questions like, “Can I withdraw money from retirement?” and “Do I have to pay rent?”

Especially in light of the (very confusing) recent stimulus bill, I’ve also been reading up on if I can apply for loans as someone who works as an independent contractor. Here, I’ve put together a few categories of major personal finance-related questions many individuals affected by the coronavirus crises may be asking themselves. Hopefully, I can save you some of the headache of going out to find all this disparate information. For a very full and detailed breakdown of all of the below, you can head over to the personal finances resources document on my nonprofit’s blog here.

Do I still have to pay rent?

This has been quite unclear, with governors issuing memorandums yet landlords still asking for payment. While cities like NYC and L.A. have both declared a temporary halt to evictions (for renters) or foreclosures (for owners), you are still liable to pay the rent whenever the rule is lifted and you may be charged interest. (Landlords can also technically pursue legal action if they want to.) The only exception to this rule is for tenants whose landlords have mortgages backed by government entities like Fannie Mae, in which case landlords cannot charge any extra fees or evict non-paying renters. If you really cannot afford rent and you are considering not paying this month, make sure to notify your landlord in advance and communicate how you’ve been impacted by COVID-19 so the two of you can figure out a payment plan. Here’s some more information for both cities:

Can I apply for unemployment?

Most likely, yes! I was relieved to see freelancers, independent contractors, self-employed and gig workers can now all apply for unemployment benefits under Pandemic Unemployment Assistance (PUA) in the CARES Act (aka the stimulus bill).

The normal waiting period of one week for benefits has been waived, and under the Pandemic Emergency Unemployment Compensation (PEUC) there are another 13 weeks of unemployment benefits (up to 39 weeks) available. Even if you are still working but had your hours cut, you can apply for partial unemployment. Just make sure you apply for unemployment as soon as you have a change in employment history – while benefits are retroactive, if you file late there may be questions on why you waited.

Another important thing to note is the Pandemic Unemployment Compensation (PUC) which adds another $600 a week in unemployment benefits for up to four months, for those whose unemployment applications are accepted. Unemployment benefits vary by state. Find the appropriate link to your state here.

Can I put money on my credit card if I need funds?

If you need to, your credit card is a common and very accessible place to access debt. You’ll want to try and minimize the negative impact of carrying a balance (i.e. not paying the full amount due each month) by at least paying the minimum amounts and keeping your credit utilization rate (the percentage amount of what you use on your credit card, plus your carrying balance, over the card’s total credit limit) as low as possible.

You should also call your credit card provider and ask if they are able to extend you help such as temporary credit limit increases, forbearances (where payments can be missed for a period of time without penalties), or not charging interest.

Can I withdraw from my retirement account if I need money?

Yes, you can, but be aware of the consequences of doing so. The CARES Act has removed the 10% penalty usually associated with taking money from either your 401K or IRA account, but you still have to pay income taxes on it over the next three years. If you have a 401K, you may also consider a 401K loan, which is advantageous over direct withdrawal in some ways. The new law has also extended the amount you can loan from your own 401K to the maximum in your account (instead of the usual 50%) for 180 days.

If you have a ROTH IRA or 401K, you are able to withdraw your contributions (i.e. what you paid into the accounts) without penalty, but any earnings (i.e. money that was made from your contributions) are still subject to the usual bevy of penalties and taxes.

Can I apply for one of the SBA loans?

Maybe. Freelancers, independent contractors and self-employed workers are eligible to apply for both the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP).

The EIDL is a standard SBA loan that’s been in existence; it is up to $2 million with an interest rate of 3.75% (2.75% for nonprofits) and a repayment term of up to 30 years. This is the loan that also comes with the Emergency Economic Injury Grant of up to $10,000 (which doesn’t need to be repaid). When you are applying for the EIDL, you’ll see a checkbox at the end of the application that asks if you want to be considered for the grant. From the latest news, it looks like the grant is $1,000 per employee of the business that’s applying.

The PPP is a new loan that is administered directly through your bank. You can borrow up to 2.5x your monthly payroll (or monthly income that does not total more than $100,000 per year), and if you spend that on categories the government has deemed forgivable, you will not need to pay that portion of the loan back. Everything not forgivable turns into a loan with a 1% interest rate with a maturity of two years, first payment in six months.

Applications for independent contractors, freelancers and self-employed people opened April 10, but since many banks are experiencing intensely high demand, a lot of places have either stopped offering them or will not offer them to new customers. So far, I’ve found three places that are accepting online applications: Kabbage, Cross River and Live Oak Bank. I haven’t banked with any of them before so I can’t vouch for them, but at least those are some options.

Finally, you can apply for both the EIDL and PPP, but you can’t use both sets of money for the same thing. If you receive grant money from the EIDL, that is subtracted from your forgivable amount in the PPP.

Do I still need to pay my taxes?

Yes. However, you have more time to do so. The federal tax filing deadline has been extended to July 15, 2020. If you owe taxes, you can delay filing to manage your cash out; if you are owed taxes, you can still file now to receive your refund faster.

I hope that was helpful! For a deeper dive into all of these topics above, visit studioatao.org.

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