COVID-19 FINANCIAL ASSISTANCE/LOANS/GRANTS/ TAX CREDITS
(up to $28k Credit per Employee in 2021 & Combinable with PPP; thru 2021)
Now Combinable with PPP. You can claim up to 70% of total compensation expense per employee up to $7k per employee per Qtr. 2021, if you can show a 20% reduction in Revenue for a Quarter. Work with your CPA as you can't double count the same paycheck expense that you claim for the PPP Loan, but with some planning you can get incremental benefit vs just PPP alone.
(30yr Fixed Loan is available thru Dec 2021)
The SBA COVID EIDL Loan is a 30yr loan at a 3.75% fixed interest rate and loan payments will not start for 2yrs to give you some breathing room. You will be authorized for up to $2m, but you decide how much you want to borrow up to the approved amount.
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We also recommend that you set-up a separate checking account for the EIDL Loan and pay payroll and other standard business expenses from that "EIDL" account (including other business debt payments) until you use up the EIDL amount of loan so that you will have a clean audit trail for use of EIDL funds should the SBA ever come back and ask for proof that you used the EIDL Loan for bona fide business expenses.
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For a step by step walkthrough with screenshots of how to apply for the EIDL Loan, watch "4/2/20 Disaster Loan Training" video.
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Note: this will originally speak to some elements to this loan that have been updated since April of 2020 - mainly no longer a free $10k Advance grant & the EIDL Loan limit was increased from $150k to $2m and the 1yr before loan payments starting has been changed to 2yrs before loan payments start
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After you get approval (about 2-3 wks after applying) Watch (09/14/20) - EIDL/PPP Updates: Checking Status/Approval After You Get the Money
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For Additional info, the SBA also has a dedicated page with Frequently asked questions etc & it can be found at: SBA EIDL Info Page
Cannot be combined with 2021 PPP. For Movie Theaters & Other Venues with Ticket Office. Shuttered Venue Operators Grant Info Site
Those who received initial grant showing 70% loss when comparing 2021’s first-quarter revenues to the same in 2019 are eligible to receive a supplemental grant.
Supplement Award allows recipients to extend the time to use their grant funds for expenses accrued through June 30, 2022
Shuttered Venue Operators Grant Technical Assistance- Applicants Can Call 1-800-659-2955
(State/Local/Private)
EXISTING LOANS: Talk to your lender about loan modifications available due to the Coronavirus. Many banks are making no-cost modifications available if you ask (Ex: Interest-only payments for a few months, months of payments pushed off to the end of the loan, etc.). Your Lender does not want to see you go out of business, contact them now!
LOCAL SUPPORT: Check with your local town/county for additional programs they may offer.
The program has ended but existing borrowers may be eligible for PPP loan forgiveness.
For more information click here
SBA PPP Informative Video
"Funded in part through a Cooperative Agreement with the U.S. Small Business Administration."