Hey BFF’s
I’m not about accruing extra debt; however, I love, and I’m for free money!
Disclaimer – Although I love free money and want you to have free money; we need to ensure we’re not being greedy. There are plenty of businesses in 2020 that truly needed the additional funds and unfortunately, people were scamming. As a result the grant money dried up by mid-July. If you’ve been able to sustain your business and are not struggling, this is time to give grace to your fellow entrepreneurs. If you need the money, apply. If you don’t, leave it for the business that truly need it.
Targeted EIDL advance
Congress has released $20 billion in additional assistance for small businesses which includes a new EIDL (Economic Injury Disaster Loans) grant called the “Targeted EIDL Advance For Small Business Continuity, Adaption, and Resiliency.” The qualifications of the new grant are a little different than the previous one released in 2020.
Before we get into the qualifications I must share, if you received the full $10,000 last year you are not eligible this year. If you received a portion last year, they would deduct what you received from the $10,000 and give you the difference. For example – you received $3,000 in 2020 you are only eligible for $7,000 in 2021.
Let’s see if you qualify-
- Are you located in a low-income community?
- According to section 45D(e) of the internal revenue code of 71986 – A Low-income community is defined as 1) median household incomes at or below 80 percent of the statewide median income, or 2) median household income at or below the threshold designated as low-income by Department of Housing and Community Development’s State Income Limits under to the Health and Safety Code Section 50093.
- Suffered economic loss greater than 30%, and
- Employ less than 300 employees
Also, your business must be an eligible entity defined in the CARES Act:
- A small business, cooperative, ESOP Tribal concern, with fewer than 500 employees
- An individual who operates as a sole proprietorship, with or without employees, or as an independent contractor; or
- A private non-profit or small agricultural cooperative.
- The business must have been in operation by January 31, 2020
- The business must be directly affected by COVID-19
Did you know?
EIDL grants are not taxable. Therefore, your business still qualifies for a tax deduction on qualified expenses. If you applied last year and did not receive funding because it was drained, the SBA will be required to reach out to you, and you may be able to apply for the full $10,000.
How to apply?
Chile, I have no idea! The SBA has not released guidance, but when they do, I’ll be sure to let you know, ASAP.
PPP – Part 2
The newest PPP (Payment Protection Program) loan option is available now. Ok – the great thing about the loan is that it comes with a low-interest rate. Friends….DO NOT apply for a loan you cannot afford to pay back. Grants equal free money, loans you must pay back with interest.
The PPP loans are for qualifying payroll and non-payroll expenses. The loan may be partially or fully forgiven if funds are spent on authorized expenses between 8 and 24 weeks after loan disbursement (you decide the timeframe). The loan is geared to help with payroll (salaries, wages, commission, hazard pay, state and local taxes). Total payments for payroll may be forgivable. All other expenses are also forgivable, up to 40%.
To ensure you receive the maximum amount of loan forgiveness make sure you keep track of your expenses and spending, as you will have to prove how you spent the funds to your lender.
Click here to apply.
Ok, that’s all I have friends! Let’s keep your businesses thriving.
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