NEW SBA $10,000 EIDL Advance / Grant Low Income Community Requirement Online Tool

NEW SBA $10,000 EIDL Advance / Grant Low Income Community Requirement Online Tool

video transcript

Hello from FreedomTax Accounting, we’re an accounting firm where we have been providing quality tax and accounting services now for over 20 years. We wanted to do this video because we do know there is a new SBA $10,000 targeted EIDL grant that should be opening soon to small businesses. And one of their requirements to get this new $10,000 grant is that you have to show that your business is located in a low-income community. Now we have been trying for weeks now to look for a tool that will make it easier for small business owners to find out if they meet these criteria. And we think we have found the best tool online, and we’re going to share it with you. So that way you can check if your business is located in a low-income community and you’re able to check if you’re eligible for the new $10,000 targeted EIDL grant. Now today’s January 18th and up till today, there are still a lot of questions surrounding the new EIDL loan program.

Up to now from December 27th, everything you have heard on YouTube and online surrounding this EIDL loan program are people’s interpretation of what they think is going to happen.

There is still no official guidance from the SBA on how this new idol program is going to work. That’s why if you follow our channel, we have not done any video on the EIDL  program, because we are waiting on the official SBA rules and we think it should be, it may be out even today, sometime this week we feel SBA is going to finally come out with that Final guidance for the new EIDL program.

Now, this is what we know, and this is what we don’t know. We know that there is no second EIDL loan, so if you’ve got an EIDL loan, you cannot apply for a second EIDL loan.

We do know that there is a new $10,000 EIDL targeted grant. But we don’t know if the businesses that got the initial grant are going to be able to apply for this new grant.

And the most common question is we don’t know if you got the idle grant back in 2020. If the SBA is going to give you the remaining balance of $10,000. So that’s, I think the most common questions we get. If I got a thousand dollar EIDL grant, is the SBA going to give me the remaining 9,000?

We think yes, but we have to wait for the final and official SBA guidance that it should be out this week. As soon as it’s out, we will be making a video on it. Okay. Now the new targeted EIDL advance or grant has three eligibility requirements

1. Your business cannot have more than 300 employees.
2. You have to show a reduction in revenue of at least 30%.
3. You have to show that your business is located in a low-income community.

And this is where a lot of people have issues because they don’t know how to find that out, but that the solution we have for you in this video. So the low-income community guideline means this is what the law says:

“You need to show that your business is in a population census tract for which the poverty rate is at least 20% or that your businesses located in an area that the median family income for the track does not exceed 80% of the statewide median.”

That’s a lot to digest, but we’re going to show you that it’s very simple to see if you’re eligible or not. Okay. There are two online tools. There are two websites on the geo map and the census website, we are going to put a link to these two websites on the description of this video. So let’s get started.

Okay. So the first way, that easiest way to see if your business is located in a low-income community to see if you’re eligible for the new targeted EIDL grant is going to this website is called Geo Map. So this is what you’re going to do first:

1. You’re going to go to this website and we’re saying year, you’re going to put 2020, and here you’re going to put your business address.
2. Enter your business address and you click search. This will point to the address of your business.
3. And here you go to Census Demographic Data, and this pops up and here you go to income.
4. Click on Income,
5. In the poverty line, your number is showing.

 

 

If this number in this line is 20 or above, 20 or more, you already meet the low-income community requirement. But let’s say that you do this test and the number here is less than 20, you still have one more option. You need to take this number in the 2015 Tract Median Family Income.

 

In our case, it is 36,520. You take that number and then you go to the Census Website, and you’ll scroll down and you go to your state in our case, it’s Florida, and you go to 2015 Median household income and you take this number the 49,004 26.

So we take the first number and we need to do some math. Remember the first number was 36,520, we divide by this new number, which is 49,426. This is what we get 0.73, if this number is under 0.80, then you are eligible to get the new $10,000 targeted EIDL.

So once again, the first step is to go to this website, put your address. And if that doesn’t work, then use the census information. This is the easiest way we have found to see if you’re eligible for the new targeted idle grant.

Now, a lot of people are calling our office to see what services we can provide. We are a full-service tax and accounting firm. We can help you with your personal and business tax preparation. We can help you with your business accounting and bookkeeping. We are providing the service to apply for the EIDL loan and grant.

We are providing. The service to apply for the PPP one or PPP two, or if you want any consultation on the idle and the PPP, we are doing consultations as well. We do a lot more services. We’re a full-service tax and accounting firm. You can call us at 407-502-2400 or you can visit our website https://freedomtaxaccounting.com

So thank you for watching this video. Remember to subscribe to our channel and also watch this suggested video. To where we talk about how you may have to apply for the second PPP loan with a different bank.

 

Thank you for watching. God bless you. Bye-bye.