Yo what's up everybody? Today is January 4th 2021 which means happy new year! Good to see
you on the other side of 2020. I hope you had us a good, fun, safe celebration. And you know,
thanks for joining me today. If you're new here I would love it if you consider subscribing to
my channel as I'm trying to keep everybody up to date with all things pandemic, Covid assistance,
Covid relief related things. And also if you find this video helpful, please smash that like button
I'd really appreciate it. And let me know in the comments below if you have any questions
or concerns about anything I talked about today and I'll do my best to reply to your comments
and answer your questions all right. So today I'm going to be talking about the EIDL grant
or advance and kind of what's going on here with the new relief that was just passed.
Whether you can apply for a second one, whether you get the full $10,000 if you already applied,
and how it affects the PPP. So for you to know what's going on here you have to understand that
the new relief package, you have to understand that the new relief act has actually two sections
that defines how you will receive the $10,000 EIDL grant okay. So the first section is Section 331
and it's called the Targeted EIDL Advance for Small Business Continuity Adaptation and
Resiliency. So basically this section outlines a targeted sector of businesses which first
is businesses that employ under 300 employees. The next qualification is businesses that have been,
that have been hit by economic injury of a revenue loss of about 30% or more during a certain time
period. And it will also cover businesses that are in low-income areas. So down, if you scroll
down on the bill it says here that "low income community". The term low income community has the
meaning given the term in Section 45 DE of the internal revenue code of Section 19 of 1986. So
let's jump over to Section 45 DE of the internal revenue code. And here it says the term low-income
community means any population census tract if the poverty rate for such tract is at least 20%,
or in the case of a track not located within the metropolitan area, the median family income
for such track does not exceed 80% of statewide median family income. Or in the case of a track
located within the metropolitan area, the median family income for such a track does not exceed 80%
of the greater of a statewide median family income or the metropolitan area median family income.
So a lot of words there. Basically it means that if you live in a region or county
that has at least 20% poverty then you are considered in a low-income community.
If you live you know, outside the metropolitan area then you have these this other guideline
here that if your metropolitan county does not exceed 80% of the statewide median income,
then you are also considered a lower income community. And then lastly, if you live within
the metropolitan city or area then you can either compare your city's median income
with the statewide income or the metropolitan area income. You can't be more than 80% of those,
of one of those median incomes. And I know it's a little confusing but just know that
those are kind of the criteria that's going on. And in order to find whether or not you
live in a low-income community I'll post a link down below to the census website that, that's an
interactive tool that lets you browse you know, each state and each county to see what levels of
poverty that your county is in and then you can then compare it to the state levels and
see you know what's going on there. So that's how low income community community is defined
in this bill. And if your business is covered as less than 300 employees, and is covered with
a economic impact of 30% revenue loss, and if it's covered by being in the low-income community
then you will qualify for this Section 331 of the economic injury disaster grant okay.
Now in this section you are guaranteed $10,000 okay. And it it says so right in the bill, you're
guaranteed $10,000. And what it also guarantees is if you had already applied for an EIDL grant
and you received less than $10,000 then you are guaranteed the difference of what you received and
the $10,000. So if you're covered under Section 331, pretty straightforward you will get $10,000.
Let's move on to Section 332 which is a more broad and all-encompassing section if you don't
qualify under Section 331. So Section 332 of the, of this bill is just called Emergency EIDL Grants
and it basically just amends a bunch of lines from the CARES Act that was passed back in March.
Now what this basically does, what the amendments, I'm not going to go through them in complete
detail, but what the amendments are is that it removes the clause that states that the SBA has to
fund the EIDL grant within three days, it's changed it to 21 days. And also, there's some very
technical language that it changed. For example, in the first CARES Act, there was a language that
says that the applicant, which is you or the business owner, can request up to $10,000, any
amount up to $10,000 from the SBA. So it says that you can request that amount. Now it doesn't say
that you were obligated the full $10,000. It doesn't even say that SBA has to pay you that
amount, it just says you can request that amount. Now this bill makes a change to the CARES Act
that states whatever amount you request from the SBA as a grant, the SBA has to pay you
up to $10,000 given that you qualify. This basically changes that clause saying that yes
the SBA has to pay you. Now if you request the grant, there's no clarity on whether or not you
can request the grant if you already received one. You know what I mean? Because Section 331 which
is the first section I talked about, it clearly states that you can receive the full $10,000. It
clearly states that if you already received one, the EIDL grant, you can request the difference you
know up to $10,000. But under Section 332, let's say your business does not qualify under 331,
we are unsure if you can request you know the difference of $10,000 versus what you
received. And I'm going to go on out on the limb and project that you cannot do that if you don't
qualify for Section 331. If you are applying for the EIDL grant under Section 332, I don't think
that you'll get the difference of the $10,000. And one of the reasons I think that is because
several of the senators and representatives summaries of this bill only states that you know,
low-income community businesses will receive the difference of the $10,000. So unfortunately, if
you already received the grant, my prediction here and my thoughts are that you will not be able to
receive the difference unless you qualify for the Section 331. So
some bad news aside there, at least potential bad news you know. Obviously I don't know for sure,
we have to just wait and see how the SBA interprets this law and how they implement it.
So stay tuned I will definitely keep you guys updated on new developments there.
Now the last thing I want to talk about is Section 333 which is the repealing of the PPP deduction.
So as you know, when the CARES Act passed, it clearly stated that if you receive the PPP and
you receive the EIDL grant, the EIDL grant amount will reduce your PPP forgiveness by that amount.
Well in this bill that just passed, that is basically taken away. So if you received the
EIDL grant and the PPP, you'll still be able to receive full PPP forgiveness regardless of
your EIDL grant amount. So that's something that's you know, great news for people and I'm sure many
will be happy about that. All right so that's all I've got for today. Thanks for joining me.
It's a new year, 2021. It's probably going to be you know, just as crazy of a year in my opinion.
So let's make, let's try to make the best of it alright. So stay safe. Take care. Have a good one.