Now even though you may have received an EIDL in the past, some of you are telling us that you have not received the email from the SBA, and we really are not sure if you have to get the email in order to request the increase or if you can just basically write the email to the SBA to request the increase. We suggest if you haven’t received the email just write the email request there’s nothing to lose okay. So, that’s what we’re telling our clients that have not received the SBA email and they want to request the EID loan increase we’re telling them, let’s just do the email okay; there’s nothing to lose okay.
So, as a summary we wanted to emphasize that remember that the Idle is a loan; this is not the grant all right. Remember that the Idle program has the grant portion, and the Idle program has the loan portion okay this is to request an increase on your loan all right, and remember it’s a 30-year loan 3.75 interest rate 2.75 for non-profits. If you got your Idle loan in 2020, meaning that you have 24 months to start making your monthly payments from the date from the month you got the funds. If you get your Idle loan in 2021 you have 18 months of payment deferment very important because there’s a lot of people confused. The loan that has forgiveness is the PPP loan which is a ; the EIDL has no forgiveness. Remember that this loan has very strict rules you cannot use the funds for whatever you want and the SBA will be requesting financial statements in the future because they want to check how you are using the EIDL loan funds.
But since we have been working with our clients getting the ideal loans now for a year, we have come up with our own formula here in Freedom Tax and we have come very close to what the SBA has proposed to our https://yourloansllc.com/payday-loans-ak/ clients on getting the EIDL loan okay
In the past, we have done a video on how to correctly use the EIDL loan funds okay. If you haven’t seen it, we are going to put a link to that video in the description of this video okay. So, basically, let’s go to the question of how much EIDL loan increase can I get. If you are subscribed to JJ the CPA, he has a great channel and I love the way it says that the SBA formula is an urban legend. So, that’s the formula that we are going to share with you today all right.
Now the thing is no one knows for sure the exact SBA formula that they are using to calculate the EIDL loans
Now in order to know how much EIDL increase you’re going to get you will need to get your gross receipts of 2019, and your cost of goods sold of 2019 okay. So, where do you get these numbers from? So, if you are a schedule c filer then look at your schedule c for 2019, even though here it’s 2020 look at your schedule c for 2019. and this is line one this is where you get your gross receipts or sales. In line one that’s the number that’s here. And then your cost of goods sold is line four, so the number that’s on line four that’s your cost of goods sold. If it’s zero if this is blank then your cost of goods sold is zero okay. So, this is if you are a schedule c. If your business files the 1120 meaning that you are a c-corp take a look at your 1120 of 2019, and once again, here line 1a is your gross receipts that are this number right here 1a and line 2 is your cost of goods sold.