The Small Business Administration will open the Targeted EIDL Advance Grant to all eligible small businesses in the near future.
The expansion of the program is expected in the next few weeks. Before this, the EIDL Grant was by invitation only for those who had already applied for an EIDL.
In order to qualify for the loan a business must be located in a low income area and must be able to prove that it had a 30% reduction in revenue over an eight week period during the pandemic. An employer must also have less than 300 employees.
Again, I must caution you. Very few EIDL Grants have been approved because most don’t fill out the application correctly. This is underwritten primarily by machines. Your application must be flawless. If you do something as insignificant as spell the name of your company incorrectly, it will bounce.
They still haven’t been able to teach a machine to be reasonable.
The normal EIDL Grant is $10,000. If you can prove an economic loss of greater than 50%, you can get as much as $15,000.
These Grants are non-taxable.
Let me leave you with this.
Opening up the grant to all eligible businesses is an obvious response to the PPP Loan program ending. Many small and medium sized businesses are still hurting as a result of the pandemic.
The problem is that very few of the grant applications are being approved. Even if you are approved, we’re only talking about $10K – $15K in aid. Unless you have a very small business, that isn’t going to go very far.
This leaves the Employee Retention Credit. We’re getting checks for $200K to $300K per quarter for our larger employers. This isn’t some sort of a pipe dream. For many it might seem too good to be true, but don’t kid yourselves my brothers and sisters. This is real.
If you haven’t signed up for our Employee Retention Credit Consulting and Preparation program, please do so today. If you know of anyone who would be helped by this extra stimulus money, please have them contact us.
One last thing. When I wrote about the Social Security Ripoff on Monday, I mistakenly stated that anyone can receive social security benefits whether they pay into the system or not. This was untrue. One of the CFP’s on my mailing list corrected me.
Unless you are disabled, the spouse of a worker, or a child who loses a parent, there are minimum work requirements in order to claim the benefit. I had always thought that all were entitled because my sainted Grandmother, who never had a W-2 in her life, received benefits. I now know that this was because of my Grandfather’s work history.
Jeff, thanks for the correction.
I will be writing further about the special needs of entrepreneurs in retirement planning. It’s pretty obvious that I opened a couple of nerves with that column given some of the emails that I received.
Please remember that my comments are specific to the needs of ownership. Social Security can be a great thing for employees in certain situations, but it’s generally a lousy idea for owners. It’s mandatory and the rate of return you get on your money is terrible.
The perspective of an entrepreneur will always be different. Remember that I don’t write this for Dick and Jane down the street.
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. If there is anything 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
www.AccountingSolutionsLtd.com
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