JAN 13, 2021
As part of Payroll Vault’s commitment to providing businesses with knowledge on the latest legislation pertaining to their operations, here is a breakdown of the New EIDL Grants and Loans starting to occur. We will be sharing updates as they come through. If you have any questions, please reach out to your local Payroll Vault professionals for more specific information.
As part of the new stimulus bill signed into law this month, businesses will have another chance to receive Economic Injury Disaster Loans (EIDL) and Grants. Though more SBA guidance is expected, business owners should be prepared for the new online EIDL application portal to launch on January 17.
This new legislation, which sets aside another $40 billion for EIDL Grants beyond what went out last year, includes a new “targeted” EIDL grant specifically for small businesses in low-income communities who suffered at least a 30 percent economic loss due to the impact of COVID-19. That is an extension — though with some key differences — of the EIDL in last year’s CARES Act. It also addresses many concerns about the original guidelines around the $10,000 grant maximum, including the determination that these grants will be tax-free.
Of course, programs like this develop and may update with changes constantly. Qualifications will depend on several factors. Be sure to stay ready and flexible for any updates. If you would like more detailed information, contact your local Payroll Vault professionals.
If you previously applied for the EIDL Grant and did not receive funds because they were fully allocated or limited funds you might want to contact your SBA representative to see if any additional funds are currently available for your business.
U.S. Chamber of Commerce: https://www.uschamber.com/co/events/small-business-update-town-hall/small-business-update-december-stimulus
U.S. Small Business Administration: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loans
Forbes Commentary: https://www.forbes.com/sites/allbusiness/2021/01/02/5-ways-the-new-stimulus-bill-may-help-your-small-business/?sh=7f1932816ae9