As businesses continue to close as a result of “stay-at-home” orders trucking companies and freight brokers alike will be facing a “cliff” as volumes decrease and rates drop. While it is going to hurt our pockets, the Government is focused on providing up to a $10,000 Advance on an Economic Injury Disaster Loan to Small Businesses starting this week!
If you qualify, these funds will be deposited into your account within three days of the application. It is a loan advance that does NOT need to be repaid even if you don’t quality for any additional loans.
The Application for Assistance has been streamlined since the stimulus package was approved on 03/27/2020 and it is super easy to complete, it literally takes 5-10 minutes!
Don’t waste time wondering if you will or will not qualify; it is important to just put yourself in the que.
In my opinion, this money will be dispersed quickly as it is basically first come first serve, they want to get the money into the hands of small business as soon as possible.
Apply for Assistance: https://www.sba.gov/funding-programs/disaster-assistance
What do Expect:
- Select: Economic Injury Disaster Loans and Loan Advance
- Disclosures: Answer Eligible Entity Verification Questions
- Input Business Information: Required Fields have an *
- Business Information: Contact Information, Date Business Started, Type of Business
- Gross Revenues for the Twelve (12) Month Prior to the Date of the Disaster (January 31, 2020)
- Cost of Goods Sold for the Twelve (12) Month Prior to the Date of the Disaster (January 31, 2020)
- Business Activity: Example: Freight
- Detailed Business Activity: Tow Truck and Yard, Tractor Trailer Transportation, or None of the Above
- Input Business Owner(s) Information: Business Owner Contact Information
- Additional Information: Yes/No Questions – Input Bank Account Information.
- Summary Review of the data
At this point you are in the que and will be contacted by a loan officer, if follow up documentation is necessary.
Note: This information is regarding the Economic Injury Disaster Loans (EIDL) which are facilitated through the SBA. This loan is in conjunction with the Paycheck Protection Program (PPP) Loan that is facilitated through a bank.
Additional Note: The funds will have to applied to pay the following:
- Payroll Costs (loan will be reduced or eliminated if payroll is reduced within 8 weeks of the loan origination).
- Payments of interest of any covered mortgage obligation” that was incurred prior to 02/15/2020
- Rent as long at the lease was executed prior to 02/15/2020
- Utilities: electricity, gas, water, transportation, telephone, and internet access
Therefore, you will need to track these expenses to verify that they were used for the intended purpose. Ideally these funds are put in a separate class in your bookkeeping system and kept in a separate bank account.
As always, Trust Bookkeeping It Simple for All of Your Financial Needs:
Having your books in order is always an important part of conducting your business, but especially in the uncertain times that we currently find ourselves in.
At Bookkeeping It Simple, we pride ourselves on going above and beyond offering greater peace of mind starting with your books. With our bookkeeping services, you will never have to wonder whether you are in good financial standing and you will always have a plan in place for situations such as the one our country currently finds itself in. Ensure that your business has the financial security it needs to thrive, contact us today to get started. If you need any assistance or have any further questions, feel free to email me at firstname.lastname@example.org. I’ll be happy to assist you!