The deadline for getting your first draw PPP Loan Forgiven is fast approaching for many. Borrowers have 10 months after their covered period to request loan forgiveness before the monthly payments including 1% interest begin.
If you received your first draw on May 1st of 2020 and your covered period was 24 weeks, that takes you to October 16th of 2020. Ten Months from then takes you to July 16th of 2020, with your first payment due roughly 10 days ago on August 16th.
As of last month, 18% of first draw recipients had not yet requested forgiveness.
If you submit the forgiveness paperwork, then payments are put on hold until a determination is made. If you need help with your forgiveness documentation, please contact our offices today.
SBA Working On Increasing EIDL Loan Limit To $2M
Earlier this year, Senator Ben Cardin, Chair of the U.S. Senate Committee on Small Business and Entrepreneurship issued a statement saying that the SBA was working on increasing the current limit on EIDL Loans from $500K to $2M.
In an article by the Cleveland Business Journal, SBA Administrator Isabel Guzman stated that her agency was making the upgrades necessary to facilitate another increase in the EIDL program.
When this could occur is anyone’s guess. The SBA issued a statement saying that the current backlog of EIDL Loans would be cleared by the end of this month, so it could happen as early as September.
Please remember that these are not forgivable loans or grants. They must be repaid at the stated interest for small businesses of 3.75% over a 30 year term. They cannot be used for many things, including expanding your business or taking distributions.
Let me leave you with this.
A few hours after I wrote Monday’s piece on the dangers of unvaccinated kids going back to in-person learning next Monday, I came across a new study on C-19 transmission done by researchers at Georgia Tech and North Carolina State University.
It showed that within 90 days, 70% of unmasked and unvaccinated kids would contract the disease, and 40% of children who are masked but also unvaccinated would contract the disease within that same period.
Since I had some numbers to now work with, I started doing some math.
I couldn’t find the actual number of children in schools, but I was able to find the number of kids in public schools in Illinois being a little over 2M. That doesn’t include kids in private or parochial schools, so the number is low, but let’s use it anyway.
We don’t know what percentage of kids are unvaccinated, but we do know that 48% of Illinoians aren’t, so let’s use that number. It’s low, because a greater number of kids are unvaccinated, but let’s use it anyway.
Since the state has issued a mask mandate, let’s assume that 40% of almost 1M school aged kids would contract C-19 within 90 days. That’s 400K new cases, but it doesn’t stop there. Some of those kids will bring it home to unvaccinated households.
How many would be infected is impossible to predict given the number of people per home. Some homes would only have one additional person while many might have as many as an additional six or eight. Let’s be conservative and say that the number would only double to 800K.
That’s 800k new cases over the next 90 days or an average of 8,888 new cases per day. The seven day average for Illinois is currently sitting at 3,449. If you add those two numbers, what do you think they will do if the new daily cases in Illinois becomes 12,338?
At the very height of the pandemic on November 13, 2020, the daily average cases for Illinois was only at 12,314.
Be ready my Brothers and Sisters. Fall is coming.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need help with Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Bookkeeping and Tax Work, you can rely on us. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
www.AccountingSolutionsLtd.com
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.