In updated guidance released last Friday, the Small Business Administration updated the timeline for loan applications, advances, and appeal requests on the EIDL Program. While the December 31st, 2021, deadline is still in place, the SBA has strongly recommended that those seeking the Supplemental Targeted Advance submit their applications no later than December 10th.
After New Years, the agency cannot continue to process applications. This means they might not be able to complete the review process in time on the applications received closer to that date.
The SBA also said it would accept and review reconsiderations and appeals received before New Years, provided that these requests are within the stated period for such actions. This would only be as long as funding remains.
Let me leave you with this.
I had lunch over the weekend with a money manager for one of the largest banks in the country. We started talking about inflation, and he said something that really threw me for a loop.
I asked, “Why doesn’t the government do something about inflation?” His response is something that I’ll never forget.
He said, “Because inflation is good for the government.”
He went on to talk about how normally the country is heaviest in debt right after a war, but that the war debts historically have never been repaid. Effectively what happens is an optical illusion.
The economy expands faster when it has inflation. As the economy expands, the debt as a percentage of the economy gets smaller and smaller.
As the economy expands, government tax revenues increase. Sooner or later things go back into sync.
It’s the equivalent of kicking a can down the road. As you kick it further away, it looks smaller and smaller. It isn’t any smaller. It just looks that way.
This got be thinking, so I looked it up, and he’s right. From a “recent” perspective, except for the small amount of debt that was repaid during the Clinton Administration, it just keeps getting bigger and bigger. Our interest payments also increase but the money used to pay the debt increases faster.
This certainly doesn’t do anything for the rest of us. Obviously, inflation is horrible for the rest of us.
That dollar just doesn’t but what it did six short months ago, but the increased dollars sure do help any government in a deficit. Think about it.
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 Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
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.