• NOTES ABOUT ELIGIBILITY:

    Please keep in mind both of these loans are meant for those who have been economically hurt by the current COVID-19 crisis.

    Intuit has a website to help check eligibility for these loans. Please keep in mind this is not an official SBA website, so we cannot be 100% sure of the accuracy of results in each instance. If you have questions about your results please reach out to us.  CLICK HERE TO CHECK ELIGIBILITY

    If you are an active partner in an LLC or partnership, you are considered self-employed for this purpose. To confirm, check your last K-1 received from those businesses and make certain they list your guaranteed payments and profits in the self-employment income box near the bottom of the page.

    ECONOMIC INJURY DISASTER LOAN (EIDL):

    3.75% long-term loan that is SUPPOSED to advance a $10,000 grant (not to be repaid) within 3 days. The SBA announced that to ensure that the greatest number of applicants can receive assistance during this challenging time, the amount of the Advance will be determined by the number of your pre-disaster (i.e., as of January 31, 2020) employees. The Advance will provide $1,000 per employee up to a maximum of $10,000. The EIDL Advance provides up to $10K, depending on the number of pre-disaster employees, and the loan provides up to $2 million for working capital needs, including payroll and other operating expenses. Some types of small businesses are not eligible for economic injury disaster loans, including real estate developers (i.e. establishments primarily engaged in subdividing real property into lots and developing it for resale on their own account). Real estate investments held for rental are eligible for EIDL Assistance.

    This is not working as advertised. We have multiple clients who already applied for this $10,000 advance early last week and have heard nothing.  The EIDL is applied for directly from the SBA, on their website. The mechanism allows you to complete a quick application, check the box that you want the advance, and they are supposed to follow up with you about the additional amount you might want to borrow. With this grant, you don’t have to have made a certain amount of profits or paid any employees. No personal guarantee is required on the first $25,000 and no collateral is required on the first $200,000. Applications are done directly through the SBA website.

    PAYROLL PROTECTION LOAN (PPP):

    where even self-employed small businesses (without employees) should be able to apply for a loan in the amount of 2.5 times your average monthly net income that COULD BE forgiven (grant). Unfortunately there is little to no guidance on how the SBA will accept applications from self-employed businesses. We do know that these loans are being processed by banks, not the SBA; so you should be talking to a bank you have a deposit and/or debt account with to apply for this. This processes is more painful as neither the US Treasury, the SBA, private banks, nor the public, have clear guidance. Friday 4/10/20 is the first day banks can accept applications from self-employed people, so talk to your bank if you want to proceed with this one. This loan/grant is either forgiven, or the balance is due back as a 1% loan over no more than 2 years. No personal guarantees or collateral are needed for this program.

    We hope to have more information by end of day Thursday April 9, as when the PPP went live last Friday (April 3) for other small businesses, we got SBA guidance Thursday evening & the application around 10PM on Thursday. Wish we had more information for you at this point.

    The IRS is warning taxpayers to be aware of scams. You can read more here. Please be alert and protective of your sensitive information especially during this time.

    As always, if you have any questions about this, please reach out to us directly.

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