WHAT IS THE EIDL GRANT?
The first round of EIDL was a free $1,000 grant provided by the SBA for contractors and businesses effected by the pandemic. Independent contractors from Uber drivers, Lime scooter chargers, business owners, and freelancers were able to take advantage of a free $1,000 from the SBA in the form of a forgiven grant. Recipients of the first round of EIDL were also able to take advantage of incredibly cheap loans from the SBA to keep their businesses afloat. This 2nd round of EIDL has many updates from the first round that make it more difficult to qualify but still a very strong option if you are eligible.
WHO QUALIFIES FOR THE EIDL GRANT
- Your Business was in operation prior to January 31st 2020
- Your business has fewer than 300 employees
- Your business suffered a 30% loss of income between 2019 and 2020, comparing the same 8 week period in each year
- Your business and/or office is located in a low-income community**
WHEN TO APPLY
The funds for the first round of EIDL ran out very quickly – if you are eligible, apply ASAP. The grants have not yet released on the SBA website, but be sure to check out their site periodically if you qualify.
HOW TO APPLY
The grants are expected to be ready soon, small businesses should periodically check the SBA website for more information at the SBA application Portal. Qualifying recipients can receive up to $1,000 per eligible employee for the business up to $10,000 (if the business is run by yourself and your spouse, that counts as at least 2 employees).
ADDITIONAL INFO
- The EIDL loan program is an additional portion of the EIDL grant that offers very good lending terms (30-year term loan with a 3.75% interest rate or 2.75% for non profits). This loan program is still open so make sure you apply if the liquidity would help your business.
- EIDL Grants are not counted as income on your tax return
- For the other part of the $900 billion pandemic stimulus package that relates to keeping your workers employed – Check out our article on the Paycheck Protection Program
**Who qualifies as a low-income community? most likely the SBA will use prior census data to calculate whether your place of business is within a low income community, you can check the census data at the census geo mapping website, Type your business address into the census site, Click the “Census Demographic Data” button, Hit income, then In order to calculate if you’re in a low income community:
- If more than 20% of families in your community are below poverty level
- If the median family income is 80% of that of your metro area
- Median family income in your community is 80% of that of your state or lower
For more information – get booked for a call with your Booked Financial Rep
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