The new $900 billions dollar stimulus bill was recently made law! This means that there is also a possibility for Small Business Owners to apply or re-apply for additional funding.
However, there are some changes to the guidelines for applying for both EIDL and the PPP loans.
SBA EIDL LOAN:
This application is processed through the sba.gov website. This is the application that is more open to independent contractor, entrepreneur, small business owner, those who have LLCs, S-Corps.
• Less than 300 employees - NEW RULE
• Operating in a lower income area - NEW RULE
• Experienced an economic hardship due to COVID-19 of greater than 30% -NEW RULE
• Applications are being processed within 21 days
• Financial documents MAY BE requested.
EIDL GRANT CHANGES
The EIDL grant is back !!! Yesssss! To answer your questions: Yes, if you applied before you can apply again. however, if you received the full $10,000 grant you will not be eligible for another $10,000. If you received $1,000 in phase I the max you can get in phase II is $9,000; the difference between the two.
Can you re-apply for the loan? Yes, you can re-apply for the loan even though you are no longer eligible for the grant.
PAYCHECK PROTECTION PROGRAM
•Borrowers must only employ 300 or less employees
• Borrowers must experience a 25% or greater drop in gross receipts/revenues
• Funding is available whether or not the FIRST loan was forgiven
• Expenses are NOW tax deductible at the Federal level.
• PPP loan borrowers are calculated at an average of 2.5%the average monthly payroll in 2019
• Funds are to be used for payroll costs and other qualifying (Capital expense) - operating expenses, supplier costs, property damage cost and limited worker-protection expense.
• Payroll forgiveness is still 60% of loan amount the other 40% is for the expenses.
Stay connected fore more updates regarding the PPP and EIDL programs and more information regarding other grants and loans for businesses, relators, and those renters and landlords.