News from: Bean Counter Bookkeeping and Accounting
Bean Counter Bookkeeping and Accounting has been diligently working with Coachella Valley businesses and Not-for-profits with several COVID related government programs that are currently available. However, time is running out. Surprising and concerning is that most of these organizations were not aware they can truly take advantage of thousands and potentially millions of economic relief options due to the pandemic.
One incredible example Bean Counter is helping our clients with is the Economic Injury Disaster Loan (EIDL) for all eligible businesses/non-profits. The EIDL program is designed to provide economic relief to organizations that are currently experiencing a temporary loss of revenue due to COVID-19. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as rent, utilities, fixed debt payments and continuation to health care benefits.
EIDL is a direct loan for up to $2 million. The U.S. SBA will continue to process EIDL Loan applications already submitted on a first-come, first-served basis but must be submitted by December 31st. There is limited funding to these EIDLs’ so it is best to get the application submitted now. Crucial to processing the loan application is accurate and up to date financial record keeping together with proper submission of the loan application. Enter Bean Counter Bookkeeping!
The COVID-19 EIDL programs are designed to provide funding access to small businesses and non-profits hurt economically during the COVID-19 pandemic. The funding comes in three forms, as follows:
- COVID-19 EIDL loans have a 30-year term with fixed interest rates of 3.75% for small businesses, including sole proprietors and independent contractors, and 2.75% for not-for-profits. Loan proceeds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt. Loan payments are deferred for the first two years, though interest will accrue. Payments on interest and principal will then take place over the final 28 years of the loan.
- A Targeted EIDL Advance of up to $10,000 is available to businesses that are located in low-income communities, have 300 or fewer employees, and suffered a revenue loss of more than 30% due to COVID-19.
- A Supplemental Targeted Advance is available to Targeted EIDL Advance recipients that have 10 or fewer employees and saw revenues drop at least 50% due to COVID-19. The cap on the advance is $5,000, meaning that businesses face a total cap of $15,000 if they receive both types of advance grants. Neither of the advance grants needs to be repaid. Several areas of California are part of the STA.
- The SBA said it would accept and review reconsideration and appeal requests received on or before Dec. 31, provided that the reconsideration or appeal is received within six months from the date of decline for reconsiderations and 30 days from the date of reconsideration decline for appeals — provided funding is still available.
On Thursday November 18th the SBA issued additional guidance a little more than two months after the agency announced major modifications to the EIDL program designed to make the money more accessible to more businesses. The most significant change was raising the cap on EIDL loans from $500,000 to $2 million. According to the report issued Thursday, the SBA has approved:
- 3.84 million EIDL loans totaling nearly $300 billion;
- More than 465,000 Targeted EIDL Advances totaling a little more than $4 billion;
- And more than 372,000 Supplemental Targeted Advances totaling nearly $1.9 billion.
- So far 581,729 California EIDL applications have been approved and total $53,529,256,264 in loans.
Don’t let this loan and other financial COVID relief opportunities slip through the cracks. Let Bean Counter Bookkeeping and Accounting count all the bean$ accurately for you! Our mission is to provide our valued clients peace of mind for all their accounting, payroll, loan application and tax preparation needs. We lift the burden, frustration, and desire for complete accuracy off our client’s back office and personal accounting requirements. For more information call 760 322-4011 or Visit www.bc-bookkeeping.com