The Small Business Administration was recently asked how much money was left in the popular Economic Injury Disaster Loan program. They responded with a single word answer.
Although no official reserve number has been reported recently, there was $11.8B left as of December 24th, 2021, in all of its EIDL Programs.
If you have any thoughts of dipping into this trough, I’d suggest you do so at your earliest convenience. Federal money like this has a way of disappearing once the government has newer, more urgent needs.
That would, of course, require the federal government to do something in the first place. Given its past couple of months of complete inaction, it might be a stretch to consider them accomplishing anything, but it could happen.
Please remember that the EIDL program was closed to new applications at the end of last year. The applications that were still in process as of the end of the year are, supposedly, still being processed.
Also, if you received an EIDL loan prior to December 31st of 2021, you are still eligible to apply for the increase. As you may know, that increase could be up to $2M in funding.
Let me leave you with this.
The Real Estate markets continue strongly as buyers bid up already high prices. This is happening as mortgage rates begin a skyward climb.
I’ve been warning about the coming real estate recession for many months. With inflation, and The Fed’s predicted move to increase interest rates and calm prices, it looks like the markets will finally slow down.
Is this the beginning of the recession? If I had a crystal ball I wouldn’t do tax returns for a living, but one thing is certain.
Purchasing a home is the most important investment that many families will ever make. If you want to do well on an investment, you buy low and sell high.
As housing prices skyrocket, we certainly aren’t at a low.
Be patient. Purchasing a home shouldn’t be an emotional decision. This is one you will have to live with for many years. If you make a mistake. it could easily ruin the next decade or so of your life.
Prices will certainly go down. As with any market that overheats, things will cool off. With the coming Fed rate hikes, this market will cool down even quicker than many imagined.
Many realtors make the mistake of selling monthly payments. They say that you should buy now because the interest rates are climbing.
The problem is that once you buy that house, you still have to pay the entire price of the home. If you overpaid, you’ll find yourself upside down on a home loan, owing more than the property is actually worth.
The thing about interest rates is that they will certainly go down at a later point. At that point, if you aren’t upside down, you’ll be able to refi back to a lower rate.
Don’t be emotional when purchasing a property. This is an investment. Do it with your head, not your heart.
We’re all going to get through this. Let’s get through it together.
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