Truckers can utilize these options to help make up for lost revenue due to decrease in loads or other slowdowns as a result of COVID-19. The credit can be obtained on wages paid or incurred from March 13, 2020 through December 31, 2020. Important note:  If an employer receives a Paycheck Protection Program loan, it not eligible for a tax credit. You cannot use the loan to expand your business or purchase new assets. Can you use EIDL loan to pay off vehicle loans? But they are asking for liquidity and the necessary bridge to keep trucks moving as America recovers from this crisis. Well, in this article, we’re going to break down exactly what can you use the EIDL loan money for and what you cannot use it for. Right now, there are approximately 500,000 trucking companies in the U.S., employing 3.5 million people and generating nearly $700 billion in revenue each year. EIDLs offer up to $2 million in assistance and may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. Anything related to your business OR other expenses that have suffered as a result of a decrease in business. If I get the full $10K (who knows?) Be strategic for growth. We covered AB5 and its potentially disastrous implications for truck owner-operators earlier in the year. Here's how to get your money and keep your small business running. The new law also expands eligibility for entities suffering economic harm from COVID-19 to access SBA’s Economic Injury Disaster Loans, while also giving SBA more flexibility to process and disperse small dollar loans. I know that it can only be spent on approved things. Okay, so let’s first break down what you CAN use the EIDL Loan money for: What You Can Use For: Business Operating Expenses a. Baskin said some insurers and borrowers are acting in good faith and assisting truckers, but a more formal, federal response is needed. The CARES Act allocates $454 billion to the U.S. Treasury’s Exchange Stabilization fund for this purpose. Nationwide EIDL Loans July 15, 2020. To apply for the EIDL or cash advance, click here. It keeps people on their toes and prevents complacency. SBTC will compete without crossing the ethical line. More information is available here from Senate Finance Committee here. PPP & EIDL Loan Tax and Bookkeeping Mastery. Economic Injury Disaster (EIDL) Loans VS Paycheck Protection Program (PPP) Loans: What’s The Difference? READ THE FULL STORY:Small business owners can apply for $10,000 cash advance grant through loan program. However, there are other considerations, and it’s important to know what they are. SBTC will compete without crossing the ethical line. Previous funding for the two programs, which were aimed at helping small businesses recover from the economic effects of the COVID-19 pandemic, ran out in mid-April. If I get the full $10K (who knows?) Terms: 30 year fixed rate with a 3%-3.25% … Anything related to your business OR other expenses that have suffered as a … If you are itching for a New Deal, you have one waiting at If you have a low credit score, expect your loan to be denied. They don’t hide from danger. Stop getting offended that truckers have a choice and trade groups now have to compete for your membership dues. How can I capitalize on the Paycheck Protection Program to receive eight weeks of payroll cash-flow assistance? The CARES Act expands EIDL eligibility to include businesses from all 50 states, the District of Columbia and U.S. territories that have suffered economic harm from COVID-19. Some common expenses of doing business can be overlooked at tax-time. Learn how to properly navigate through your PPP, EIDL, and grant proceeds to maximize your loan forgiveness to help you pay the least amount in taxes while staying compliant with the Internal Revenue Service. The SBA’s Economic Injury Disaster Loan (EIDL) Program. A typical family of four is eligible for a $3,400 recovery rebate. The CARES Act modified the EIDL, making it easier for small businesses to qualify and adding an emergency $10,000 cash advance (more on that later). Any small business in the United States is eligible for SBA assistance. In response, public officials stood up big, new programs to provide assistance for small businesses quickly last week. SBA Disaster Assistance Update Nationwide EIDL Loans / COVID-19 Loans Approved 2,622,203 Dollars Approved $150,177,958,290 2 July 15, 2020 Figures as of 7/14/20 The disaster loan program from the SBA is in place to offer economic relief to businesses impacted by natural disasters throughout the United States. Applicants are eligible to apply for the loan until June 30, 2020. If you like your trade group, you can keep your trade group. During the pandemic, trucking charities have been hit hard. Highlights of the EIDL: Availability: Available to any small businesses who has been impacted by the loss of revenue due to the Coronavirus. As a small business owner in search of a trucking grant, you will first need to create a business plan. The CARES Act requires SBA to pay all principal, interest and fees on existing SBA loan products (outside of PPP loans) including 7(a), Community Advantage, 504 and Microloan programs—for a period up to six months. Starting April 3, 2020, small businesses and sole proprietorships can apply. For that reason, the application needs to be absolutely flawless before it is sent in. Connect a good bookkeeping app to your business account (quickbooks app). The EIDL program is open to independent contractors. Rent & mortgage payments (Not early payments) b. As a small business owner in search of a trucking grant, you will first need to create a business plan. Some common expenses of doing business can be overlooked at tax-time. We covered AB5 and its potentially disastrous implications for truck owner-operators earlier in the year. 2.75% for non-profits. A $349 billion loan program opened Friday for small businesses to help cushion the economic blow from the coronavirus pandemic. Membership is open to for-hire motor carriers, private carriers, industry suppliers & allied companies, shippers, and individual professionals through our councils. For ICs and self-employed individuals, the application window opens April 10, 2020. Another 20% received between 5,000 and $9,000. The Cares Act increases the maximum amount of SBA express loans, which can be obtained in a streamlined process for a variety of business needs, from $350,000 to $1 million. However, there are other considerations, and it’s … As he noted in his remarks, “It makes no sense for the SBA to make a loan payment to a carrier for an independent contractor and then compensate the IC for lost income.” For EIDL loans click here. 1. Competition is good. “Americans across the country have renewed focus right now on what it is truckers do every single day: provide the essential goods — food, water, fuel, medicine — that we all rely in our daily lives,” Spear said. More information on the application is available here from the Treasury Department. To qualify, a business must either have operations fully or partially suspended due to a COVID-19 shut down order OR have gross receipts decline by more than 50% when compared to the same quarter in the prior year. Large Trucking Firms Can Also Benefit From SBA 504 Loans . Truckers without employees will only benefit from an EIDL application. If an employer has more than 100 full-time employees, qualified wages for the credit are wages paid to employees when they are not providing services due to the COVID-19 virus. The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides financial assistance to employers and independent contractors through lending programs backed by the Small Business Administration, U.S. Treasury Department and Federal Reserve. Provides $20 billion to restart and extend EIDL grants $15 billion grant program for live venues, theatres, museums, zoos Insurance premiums and other group healthcare benefits during periods of paid sick, medical, or family leave; Interest on debt obligations that were incurred before the covered period. is sloppy and may send you BOTH without subtracting the $10K. Get an ad-free experience with special benefits, and directly support Reddit. Since most truckers are small businesses, whether your trucking company is a Corporation, an LLC, or even a Sole Proprietorship, you are eligible. Loan payments will be deferred six months, and the program will be available retroactively from February 15, 2020—enabling employers to rehire any recently laid-off employees through June 30, 2020. It provides grants, emergency payroll funds, and loans at low interest rates with repayment options that are helpful to those currently struggling to meet expenses. You can get a $10,000 emergency cash grant even if you don’t qualify for additional funds. Covid-19 related EIDL loans include an up-to-$10,000 forgivable advance. (800)659-2955 is the phone number to check on the status of your EIDL. The SBA District Offices are another good resource when applying for SBA assistance. He said there are other programs to support independent contractors — specifically an expanded Economic Injury Disaster Loan (EIDL) program. Last updater Sun, 04-Oct-2020. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. It’s important for our nation’s supply chain that trucking has access to liquidity, so we can keep our trucks on the road—and not on the sales lot.”, "Truckers don’t have the option to telework, and they’re not asking for a handout. For ICs and businesses with 500 or fewer employees, or who otherwise meet SBA size standards, the newly created Paycheck Protection Program provides eight weeks of cash-flow assistance through 100% federally guaranteed loans to maintain payroll during this emergency. Learn how to properly navigate through your PPP, EIDL, and grant proceeds to maximize your loan forgiveness to help you pay the least amount in taxes while staying compliant with the Internal Revenue Service. Apply for the EIDL grant; Get your finances in order; Analyze your best course of action; Apply for the rebates and any other personal relief funds; Incorporate; 1. Yes, as long as it is a business expense and the vehicle is under the business name that you received the EIDL loan for. Since most truckers are small businesses, whether your trucking company is a Corporation, an LLC, or even a Sole Proprietorship, you are eligible. EIDL loan) between when the owner applied for the loan and when the loan was deposited in the account. Amount: Your business could receive up to $2 million direct from the US Government. As of June 15, 2020, the SBA is once again accepting EIDL Advance and loan applications from all eligible borrowers. Join more than 37,000 ATA members representing America’s trucking industry. The EIDL program is open to independent contractors. The loan gives up to $150,000 in aid to businesses, but the actual amount you can borrow is based on “economic injury,” … They are also eligible for an additional $500 per child. EIDL Loan. TROPHY CASE. Terms: 30 year fixed rate with a 3%-3.25% two year deferral and no personal guarantees required. Eligible businesses can get a refundable 50% tax credit on wages up to $10,000 per employee. They meet challenges head on. Photo: Jim Park. The loan size would equal 250% of an employer’s average monthly payroll, with a maximum loan amount of $10 million and a maximum interest rate of 4%. Summary of EIDL loan terms: Amount capped: at $150,000 Term: 30-year terms Interest rates: 3.75% for small businesses. Prepare for a long wait. Truckers Final Mile helps bring truckers who die on the road home to their families. For over 30 years, the objective of The Trucker editorial team has been to produce content focused on truck drivers that is relevant, objective and engaging. The Centers and Disease Control and Prevention issued new recommendations for OTR truck drivers to reduce exposure to the coronavirus while on the road and help slow the spread of COVID-19. The funds can be used for things like-payroll, fuel, repairs, operating capital, even fleet expansion. SBA Economic Injury Disaster Loan (EIDL) program March 16, 2020 / in COVID-19 , News / by Kevin Weeks The Massachusetts Emergency Management Agency (MEMA) and Baker-Polito Administration are working closely with the U.S. Small Business Administration (SBA) to activate the Economic Injury Disaster Loan (EIDL) program which would provide assistance to eligible businesses and non-profits … The Trucker's Tavern . Additional information is available here. If you were in business as of January 31, 2020, you can apply for the EIDL. ATA Headquarters Economic Injury Disaster Loans are loans of up to $2 million that carry interest rates up to 3.75% for companies, as well as principal and interest deferment for up to four years. what's this? What can I use the money for? Membership is open to for-hire motor carriers, private carriers, industry suppliers & allied companies, shippers, and individual professionals through our councils. During these tough times, we are offering full application services and filing assistance for all COVID-19 SBA loan programs. Here you can immerse yourself in a virtual world surrounded by other truckers from all over the globe driving across the USA and Europe, and with the addition of ProMods, the world is your oyster. The CARES Act expands EIDL eligibility to include businesses from all 50 states, the District of Columbia and U.S. territories that have suffered economic harm from COVID-19. The costs to be covered by EIDL are listed as "working capital, inventory, equipment purchases, real estate payments and other operating expenses. In addition, businesses that apply for an EIDL expedited access to capital through an Emergency Grant—an advance of $10,000 within three days to maintain payroll, provide paid sick leave and to service other debt obligations. 950 North Glebe Road, Suite 210 If you get the $10,000 that is supposed to be subtracted from the PPP loan. The CANs.. Economic Injury Disaster Loan Denials. Interest rates on the loans have been reduced and the term for repayment has been extended. SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. I'm on hold now, I was number 2355 when I first called, last update I was something like 1930 in line. It keeps people on their toes and prevents complacency. 5 Lessons 5 Hours English. This information will strengthen your grant application and add a quantitative value for the business, in terms of profit. Highlights of the EIDL: Availability: Available to any small businesses who has been impacted by the loss of revenue due to the Coronavirus. They have good business credit and will like to keep it seperate from personal. Therefore we are presenting everything to you in as simple a language as possible. Competition is the American Way. Here are key provisions for motor carriers: For independent contractors, small- and mid-size carriers, the CARES Act creates new SBA lending programs, and expands upon existing ones, to help maintain payrolls and other business expenses. 0 (29 Ratings) $97$13. Independent contractors and … Trucker for Kids e.V., Hilfe für schwerkranke Kinder. Competition is good. The Trucker's Lifestyle. I am not interested in the loan, only the $10K grant. 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