The application deadline for SBA COVID-19 EIDL Loans, Targeted Grants, as well as Supplemental Targeted Grants, was December 31, 2021. After December 31, 2021, the SBA will no longer accept requests for COVID-19 EIDL loans as well as grants.
This basically entails that certain business owners in 2022 were approved for COVID-19 EIDL loans and/or grants. Aside from that, several entrepreneurs who requested reassessment or loan increases were also still supported. Nevertheless, even for enterprises that managed to meet the submission deadline, the SBA is no longer receiving or handling applications for the Supplemental Targeted Advance (grant).
Top Grants Provided By SBA
There really is no ongoing EIDL grant as a component of the traditional EIDL program; nevertheless, the SBA has provided the following top grants in recent years.
Paycheck Protection Program
The Paycheck Protection Program, set in place by the CARES Act, is administered by the Small Business Administration with assistance from the Treasury Department. This service gives money to smaller firms to cover up to 8 weeks of employee wages. Proceeds can also be utilized to stump up the mortgage, rent, and utility interest.
The Paycheck Protection Program tends to favor millions of Americans who work for small enterprises by approving close to $659 billion in job satisfaction and retention as well as other expenditures.
Self-employed or independent contractors, along with smaller companies and able to qualify charitable groups, Veterans institutions, as well as Tribal enterprises outlined in the Small Business Act, are able to qualify as long as they satisfy program size guidelines.
EIDL Emergency Advances
The Coronavirus Aid, Relief, and Economic Security (CARES) Act mandated that low-interest EIDLs be made accessible to enterprises throughout all 50 states. Congress also mandated a new EIDL emergency advance program, which supplied EIDL candidates with loan advances ranging from $1,000 to $10,000 per worker.
Even though they are referred to as “advances,” these payouts are genuinely grants that do not have to be repaid and are tax-free.
Regardless of whether they ended up going on to acquire an EIDL loan, a significant number of individuals obtained the EIDL advance. Nevertheless, due to budgetary challenges, not all able-to-qualify businesses received the full $10,000 advance. The EIDL advance program came to an end on July 11 once the funding ran out.
State and Federal COVID Grants
Grants, as previously stated, are considered to be income on company tax filings. The Shuttered Venue Operators Grant as well as the Restaurant Revitalization Fund are large-scale federal COVID grants. Please remember that grants are not taxed as ordinary income on federal returns and that you may subtract bills covered with your grant money.
However, because a few states do not concur with the federal government on this, you might be obligated to report this cash on your state income taxes. State grants, on the other hand, are a completely different story.
Such funds are treated as income across both federal and state returns; however, some states have managed to make a special exception for COVID-relief grants. If you are unsure about your state’s rules, check your tax documents and a tax professional.
With ripples of COVID-19 variants like delta and omicron still affecting smaller companies, have it in mind that Congress might very well pass legislative action to aid smaller companies. Nevertheless, the time frame for SBA grants is currently unknown particularly since it has still not been extended after it closed on December 31st, 2021.