Hold on to your hats Ladies. This is a news flash that no one is talking about. I was doing some research for a client, and I found an obscure article in a CPA Journal that no one reads talking about how they had reopened the EIDL to most businesses. I said to myself that it just couldn’t be true. But I did some more research on the SBA Website, and sure enough…
They reopened it to all eligible businesses and didn’t tell anyone about it.
The SBA had stopped taking applications for a short time except for agricultural based businesses, given the fact that they were overwhelmed by demand. But they reopened the program to all eligible employers on June 15th. To qualify for the loan, you must be…
– An Employer with less than 500 employees
– A Sole Proprietorship or an Independent Contractor
The loans are available until December 31st, 2020, and
– Collateral is required on all loans above $25,000
– The business must have been in existence on January 31st, 2020
– The applicant does not need to be able to prove that they can receive credit elsewhere
The EIDL is not at all like the PPP Loan. They are not forgivable. They are straight, run-of-the-mill, thirty year loans with a 3.75% interest rate and no upfront points.The SBA can approve the loan based solely on your credit score or a tax return transcript.
The amount of the loan is based upon your actual economic injury, but the loan is normally capped at $150,000. If your business is large enough and your credit is decent, they seem to be rubber stamping them loans. All principal and interest payments are deferred for the first twelve months. But here’s the best part.
You can use the money for any business purpose, and you can get an EIDL if you have already received the PPP.
My Brothers and Sisters, we’re going to be in this thing for a long time. Given the terms on this loan, I just don’t know how you can pass it up. Think about it. All principal and interest payments have been suspended for the first year with no points or major costs up front. You could get this loan, drop it into the stock market for a year, and pay it back on the twelfth month without it costing you more than $100. However you look at it, it’s a nice insurance policy.
One other thing. The EIDL Grant program where they advanced up to $10,000 is no longer available. That money was exhausted a couple of months back. However, there is over $200B still available in the regular EIDL Program.
In order to apply for the Covid-19 EIDL Loan Package, please go to the following web address…
https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
Let me leave you with this one thought…
Those of you that actually know me, know that I am always trying to turn a negative into a positive. If you are going to be an Entrepreneur, you cannot look at the world as everyone else does.
C-19 is providing opportunities that might not have been available in its absence. This isn’t a time to hide and crawl into a hole. This is a time to expand.
What can you do to add to your business in these changing times?
What product offerings will sell well in this pandemic? What additional services can you offer? Are there any additional markets that you have always considered entering?
I can tell you what I’m doing. I’m setting up a payroll service.
I’m finally going to do it. I have resisted it for some time. Payroll is lower end work. When you think of the time entering a payroll, reconciling it, printing or sending out the checks, making the tax deposits, and doing the payroll tax returns, you can certainly understand some of the issues.
But the work doesn’t bother me. I’ve always been more concerned about the customer service aspect of the payroll business. If we are going to get into that business, then we’re certainly not going to make the same mistakes that everyone else makes. We are going to provide the same customer service which is synonymous with The Accounting Solutions name.
And we are finally in a position to do just that.
I’m starting out slowly, testing our system, making sure that everything is working correctly. It will probably be a couple of months before I’m comfortable offering this on a wider basis.
But for those of you who have been screaming about ADP, Paychex, Ceridean, and Gusto, please be patient.
We’re coming. And as usual, we will be the very best.
When life gives you lemons, make meringue.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. If there is anything that you need, whether you are a current client or not, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
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773-267-7500
chris@accountingsolutionsltd.com
