Small Business Grants

Understanding the loan watch from 0:00

Let's talk about the stimulus package forgivable loan. This is from the third stimulus package that just passed. This is ten thousand dollars of free money on a first-come first-served basis. You know, there's no stimulus checks for twelve hundred bucks. You know, honestly, who cares about the 1200 stimulus checks, because this is like a ten thousand dollar stimulus check. This is the SBA economic injury emergency Grants Program. This is applicable to small business owners, to sole proprietors, if you had employees or didn't have employees, to sole proprietors, independent contractors as well. Okay, listen up, here's a problem. There was ten billion dollars of funding for this in the stimulus package.

Why is this a problem? Just do simple math: ten billion dollars of funding. Let's just say each grant is ten thousand dollars. If that's the case, you divide 10 billion by ten thousand dollars, that's 1 million applicants. Ok, this is still not clicking to you? 1 million applicants, that sounds like a lot of applicants. How many small business owners are there in the United States? There's 30 million small businesses. There's 10 to 15 million sole proprietors. 45 million people. 45 million people, slots for 1 million applicants. It's musical chairs, first come first serve basis. Good luck. If you, okay, if you

Eligibility and program watch from 1:36

have no idea about the SBA or the lending process or how it works, don't worry. I mean, that's why you're watching this video and that's why you're here. I'm gonna help you through all this. Or you can try contacting your accountants, help you with this. [Has] your accountant even [contacted] you about this? Good luck. I'm gonna assist you through the entire application process. Again, $10,000 is on the line for you. I'm telling you, if you skip over, like, I'm being serious, if you skip over one minute of the video, you're probably going to say bye-bye to $10,000. So pay attention, please follow all. You'll probably have to watch parts of this video multiple times, but it's going to be worth it for you.

And please subscribe, because this is just one of numerous pieces of the stimulus package. This is just one. I don't even intro. My name is Brian Kim. I'm a CPA, I'm a certified [public accountant, and I own a] tax practice. Please subscribe to our channel. We have a great tax library on our channel, and we're going to keep you up-to-date about all the stimulus package programs that can help you out as an individual, as a sole proprietor and as a business owner. Today we're going to be focusing on the SBA economic injury grant program, which is an emergency advance of $10,000. Okay, we're gonna refer to this, the economic injury emergency grant program, is the EIDL, because that's what people are coining.

It is the emergency disaster loans, so the EIDL. [You] apply for the EIDL and then request the advance. The advance of up to $10,000 does not need to be repaid under any circumstance and may be used to pay for sick leave, to keep employees on payroll, to pay for business obligations, debts, rents and mortgage payments. It's a loan, but $10,000 of that loan is forgivable. In other words, it's a forgivable loan. In other words, it's a grants. In other words, it's free money. They're saying that they're gonna give you the money, the grants, the advance grant money, within three [days] of application, but [if] either they're gonna get so overloaded it'll be over three days.

But you gotta wait three days, you're gonna make a week, what's the difference? You're gonna get $10,000. Who is eligible? This is eligible, this, this is applicable to all 50 states. This is applicable to small business owners, to sole proprietors and to independent contractors. The grants are available up to December 31st 2020.

Application process overview watch from 4:24

To apply for an economic injury disaster loan and grants, apply on the SBA website. The SBA is the Small Business Administration. The Small Business Administration is a US government agency that supports small businesses and entrepreneurs. Okay, when you're on SBA websites, go to the economic injury disaster loan program. It's gonna say economic injury disaster loan program. Click on that, click on "click here to apply." From there, go to "apply for assistance." If you're a business owner, go to the economic injury disaster loans where it says "click here," and then you'll see the instructions. If you're a sole proprietor, go to the home loans or sole proprietor loans where it says "click here," and then there you'll see the instructions.

In reality, they actually both lead you to the same page. So sole proprietor is: download the home or sole proprietor loan application. Sole proprietors only need to fill out that form, and that's it. With that form, make sure you include a signed statement that says, "Please provide me the emergency economic injury grants in advance of the loan being approved." If you're a small business, download the business loan application and then download the economic injury disaster loan supporting information. So get those two things. The additional forms that you're gonna need: technically you don't need to do these additional forms, but I would recommend completing these, because if you, if you don't, then they say that they have the power to follow up, and you don't want them to follow up.

You know, again, this is a first-come first-served basis. They're gonna get flooded. You don't want the following up just saying, oh, the process has been delayed for you, or it's been rejected. You want to go, you do not want to go to the back of the line, not in this circumstance. The additional forms I would recommend completing, so download these forms as well and complete these: the personal financial statements, the request for transcripts of tax return, the schedule of liabilities, and the last one is that additional filing requirements. So those four forms, those additional forms, download those. You'll see those right there. Those are right next to, those are right below the business [loan application] and the economic injury disaster [loan] supporting information.

Make sure for this one, so make sure you include a signed statement that says, "Please provide me the emergency economic injury grants in advance of the loan being approved." Now you're going to upload all those files back to them using the upload business forms tool on their page. And if you're sole proprietor, you're gonna upload it on that same page, but below there's going to be an upload section for you as well. In the description box, whether you're doing the business one or sole proprietor one, in the description box make sure you type in "disaster relief loans." That's for the reference, so that they know it's, this is for.

It looks like they didn't automate any of this, so they're gonna have humans going through this. This is gonna be a disaster, so make sure you're first in line. They're gonna contact you. Make sure you respond to them and say that you want your grant money in advance. After a few days or a few weeks, they're gonna offer you a loan or reject your loan requests. Regardless, who cares? The whole point of this is for you to obtain the grant, the ten thousand, up to ten thousand dollars. That's the whole point of this. So who, honestly, who cares about the loan? But you can take the loan if they approve, you can take the loan, yes.

If you take more than the ten thousand, it'll be like a traditional loan, you'll pay interest on that as well. Now, the whole point is, the whole plan, this is to get the grant, the free money, and if you want to take the loan above the ten thousand, then all the better. I'm gonna give you pointers on these forms so you don't screw them up, you know, screw up the whole process. Okay, so let's

Completing business forms watch from 8:57

start off with the business, the US Small Business Administration disaster business loan application. So that's the big one, that's the primary one. I'm just gonna go over the pieces where I think may be confusing to you. That the stuff that are very straightforward, I'm not gonna touch, that waste your time. At the very top of this form, it's gonna say physical declaration number, economic injury declaration number. You don't fill it up. If you read it, it says "for SBA internal use only." So the very top portion, like those six boxes, just leave them blank. Don't touch that. That's for the SBA to fill [out], not you.

Section one, where it says "are you applying for," check off economic injury. [EIDL.] So click off that one, economic injury. Section three, applicants legal name. Again, this is for the business people. Applicants legal name: write the business name, not your personal only, not your individual, in your business name. Section number eight, leave this blank. This is just for physical injury. Number nine, also, this is for physical damage. Do not fill out this section for this purpose. In section ten, where it says email, make sure you put in your email, so they have an easier way, an expedited way of contacting you. Also your cell phone number.

In section 15, skip this. This is for physical damage as well. Let's see, okay, insurance coverage, okay, 16, skip that as well. That's for physical damage. Again, I'm doing this in one take, no edits, so please excuse any errors or awkward pauses. I had like that on the second page. Section 17: if you have more than two owners, then you're gonna print out multiple of these forms and then just attach them as an attachment. Right below that, so above 18 but we're still in section 17, it says business entity owner name. You're only populating this if the business is owned by a business. So if that's not the case, you leave it blank.

In section 18, just know that each owner has to respond. Again, if there's more than one owner, you're gonna have multiple of these attachments. Section 20, skip that, that's for physical damage loans only. Section 21, skip that. That's for someone if they're assisting you, they're paid to assist you filling out this application form and process. So if you're filling this out yourself, skip it, it's not applicable to you. Make sure you sign all at the bottom, title and date. We're done with this form. We're moving on to the economic injury disaster loans supporting information. The first, but I mean, this is so straightforward. The first box is asking you for gross revenues.

Gross revenues just means total sales. The second section is asking you for compensation from other sources. That's most likely inapplicable to you. This is for things, if you had an insurance claim and you got compensated like that. Don't forget to sign at the bottom of this. We're done with the second form already. These are the additional forms that are recommended you [fill] out.

Additional required documents watch from 12:49

Let's start with the personal financial statements. Again, I'm not gonna go over the things are straightforward. We're going to touch upon the things that might trip you up. Leave blank the things that don't apply to you. Make sure you sign [this] on the personal financial statement. The total liabilities and total assets will not balance, so if you're an accounting nerd, [it's going to] drive you crazy. It will not balance. [Don't] forget to sign it, and we're already done with this form. The form [4506-T], the request for transcript of tax return. Question one a: remember, this is your business name, this is not your personal name.

Five a, leave this blank. They already populate this for you, because they know a bunch of people are gonna start filling this out. Five B, leave this blank as well. Okay, in question six, at the very top, so right above six eight, it says six and there's a line. If you are a partnership, input one zero six five, [1065], so 1065, a partnership, one zero six five. If you are an S corporation, input 1 1 2 0 s, because that's the corporate form you file, 11 20s. So again, S corporations, 1 1 2 0 s. If you're a C corporation, input 1 1 2 0, that's the corporate tax filing form, 1120, so 1 1 2 0.

In the whole section 6 D var, if you, if you look out all at the right side, you can see that they've already marked off 6 C for you, because they auto populate it for you, as well as section 9. They've already Auto populated for you. In the sign here, right above where it literally says "sign here," there's a little check box. It says "signatory attest that he/she has read the." Bubble that box, mark it off, select it, click it, mark it off. Sign and date, please, and don't forget to title. Move on to [the] next form: schedule of liabilities. Again, I can't stress this enough, it's the applicants name is the business name, not your personal name.

So schedule of liabilities of your business. This is straight forward. If you have liabilities, fill this out. If you, if you don't [have any] liabilities, if you have no liabilities, you leave it blank. It's as simple as that. Sign and title it. Ok, the last one is the US Small Business Administration. Ok, these are the additional filing requirements of the economic injury disaster loan. It's gonna be like a chart. It's gonna say month, fiscal year, fiscal year, fiscal year, current year to date. They did an awful job of explaining this to you. Okay, so month, you're gonna, you're gonna write down the line, starting from the top, all the months: January, February, March, April, May, June, July, all the way going all the way down for each row.

Fiscal year [goes across]: each column represents a year, so as far as your filing history, up to three past years. Just input, like for me, fiscal year I will write 2019, fiscal year 2018, 2017, and then the, the farthest most column, it says the current year-to-date, so that's 2020 based. They want to know your sales broken out by month per year, as far as you go back, up to three years. If you don't have that history, as far as you can go. Basically they're trying to see how this affected your business, your sales. The second page of this, it clearly says this is not required.

Again, I recommend these forms, but this part, I'd say just forget about this. Not required, I personally did not do this. Okay, and that's all you need. That's all, that's all the help that I can provide, at least for you, on this business and application process.

Sole proprietor application watch from 17:13

For the sole proprietors, this is a sole proprietor loan application process, is much more straightforward. On that form, at the very top, again, that's for the SBA to fill out. It's gonna say an SBA application number, FEMA number, filing date and all that. That says "SBA internal use only." That's not for you to fill out, that's, don't touch that. You start where it says "are you applying for," and that you mark off sole proprietor economic injury. In the middle of the form, where it says damaged property, that's for physical damage claims. Do not fill out those sections, that's not applicable to you. Sign and date it, they're gonna be good to go.

So these are the pointers that I have for you. Again, this is one piece of the numerous benefits of the economic stimulus package that have passed, and who knows if there's going to be more. My channel is gonna cover it. And if you found this helpful, you know, please share this with your family, friends or your colleagues or whoever this is applicable to. But if you, if you are grateful for this information on providing, I'm telling you this, please help one another in the comments. I know people are using the comments, and it's like, I think somebody said it, as their chance to practice their stand-up comedy.

But please, if you find this, if you found this information useful and grateful for this, please try to help one another. These really are hard economic times for a lot of us, and people are struggling, and this is very difficult. So if you [all] help one another, I'd really appreciate it, because, you know, I'm getting flooded with comments and I cannot answer them all. Thank you so much, I appreciate it, and I'll be pumping out more videos covering all this. Please subscribe. Thanks again.