Hello All;
It's been some time since I've been able to reach out on the latest and greatest updates for the CARES act and all that comes with it.
EIDL LOAN-As many of you know the EIDL has increased their limits and you are now free to apply for more money through that program. Just a quick refresher on what the terms of this loan are:
This loan IS NOT FORGIVABLE AND MUST BE PAID BACK
3.75% interest for 30 years
Rules for what the money can be used for here: https://bench.co/blog/operations/how-to-spend-eidl-loan/
Loans above 25K require a collateral guarantee, meaning the assets of the business are backing the loan https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/covid-19-eidl
Loans above 150K require a personal guarantee-this means that they show up as part of your debt to income ratio when applying for other loans
The SBA requires hazard insurance on your business assets as well as a "CERTIFICATE OF RESOLUTION" document stating certain facts. I have created a template for this certificate including all required statements-the highlighted areas are where you plug in info for your LLC or entity. Please use this template and save it as your own.
Expansion loans have been very slow to show up in bank accounts-Rev has been waiting since April to hear back about our loan. They will get to you, be patient and vigilant
If you haven't requested an expansion of this loan you must do so in order to get more money. I have attached my email for expansion on my loan here as a template. Please use this template to facilitate this increase
EIDL TARGETED GRANT- Many of you have been reached out to by the SBA to apply for the EIDL Grant Expansion. Just a quick refresher on what the terms of this grant are:
This is a forgiven grant to help those most deeply impacted by the Covid-19 crisis. This money NEED NOT BE REPAID and could be as much as 10K.
There are strict rules for who can apply for this loan. https://www.score.org/resource/sba-targeted-eidl-advance-grants-do-you-qualify
You must be in a low income area, you must be able to show a reduction of 30% in income over the prior year, and you must have fewer than 300 employees.
If you are unsure whether you meet the above requirements please reach out to your bookkeeper for numbers.
You should have gotten an email asking you to apply for this expansion-search your inbox for EIDL TARGETED ADVANCE
PPP FORGIVENESS-ROUND ONE
The time has come to apply for ROUND ONE forgiveness. It is likely too soon to apply for ROUND TWO. Please reach out to your bank or lending institution ASAP to apply. We are hearing rumors that if you don't apply by July or August (depending when you got your loan) you may be forbidden from getting forgiveness. THIS IS NOT A DRILL, APPLY FOR ROUND ONE FORGENESS ASAP!!!!
As always, we are here to answer any questions you have on these loans and all things money and bookkeeping related.
--Katie and the REV ATX team