Attorney Explains Why Meet Kevin is Wrong About $10k EIDL Grants

In this video, I explain what Meet Kevin is missing from his interpretation of Section 332 of the new stimulus bill. The key language changes which this section makes to Section 1110(e) of the CARES Act take away SBA's discretion to limit the grants to $1,000 per employee per applicant and instead require the SBA to pay each applicant the exact amount the applicant requests. Presumably, given the choice -- which is what the new stimulus language provides -- each applicant will choose to request the full $10,000 and so the SBA will be required to provide it pursuant to Section 332.

DISCLAIMER: please note that the information contained in this video is for educational and entertainment purposes only. You should always consult your own attorney and your own financial and tax advisors before making any legal or financial decisions. This video is not intended to and does not create any attorney-client relationship between the content creator and the viewer. The views and opinions expressed in this video belong solely to the creator and do not reflect those of his law firm or any of his business partners.

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Video Time Stamps:
1:33 - disagreement among YouTubers about EIDL provisions in the new stimulus bill (Meet Kevin vs. Jason McElhone)
3:02 - two ways to get the EIDL grant in the new stimulus act
3:11 - overview of Section 331 of the new stimulus act
6:13 - overview of Section 332 of the new stimulus act
7:22 - comparison of the old Section 1110 of the CARES Act and the new Section 1110 as amended by the new stimulus act
9:29 - the key language in Section 332 that should allow for $10,000 grants
10:22 - why the change makes the biggest difference from the standpoint of legal interpretation (and why Meet Kevin is wrong)

There has been a lot of confusion on YouTube and in the media about whether eligible applicants of EIDL grants can receive the full $10,000 grants or whether they will be limited to $1,000 per employee if they are not located in a low income community and have not suffered a 30% economic loss.

Recently, Meet Kevin and Jason McElhone have sparred in their videos over the interpretation of the new stimulus act.  First, some background.  The new stimulus act contains two sections which refer to EIDL grants: Section 331 and Section 332.

Section 331 is titled "Targeted EIDL Advance for Small Business Continuity, Adaptation, and Resiliency.  This section provides for the receipt of $10,000 EIDL advances (or the balance thereof if the applicant had already previously received some portion of it) by "covered entities."  Covered entities are defined as "eligible entities" (this is a reference back to the original CARES Act from March of 2020) which:

(i) applied (or apply) for a loan during the covered period of January 31, 2020 to December 31, 2021; 
(ii) are located in a "low income community"; 
(iii) have suffered an economic loss of 30% or more; and
(iv) employ 300 people or fewer.

Applicants who fall into all of the above criteria are eligible to receive $10,000 under Section 331.

Section 332 is titled "Emergency EIDL Grants" and has the primary effect of amending Section 1110 of the CARES Act which provided for the original issuance of EIDL grants starting in late March 2020. It is Section 332 that has given most people, including many YouTubers, the most trouble.  According to Meet Kevin, all this section does is add $20 billion to be distributed under the old formula used by the SBA to distribute the original EIDL grant funds pursuant to Section 1110 of the CARES Act, which is to say that each applicant would receive $1,000 per employee, rather than the full $10,000.

Some other YouTubers, including Jason McElhone have taken issue with Meet Kevin's interpretation and statements in this regard.  Jason firmly believes that Section 332 of the new stimulus bill provides for $10,000 to each applicant regardless of number of employees.

I believe that Jason is right and that Meet Kevin is wrong. The explanation requires us to take a look at the changes that Section 332 of the new stimulus act makes to the language in Section 1110(e) of the CARES Act.  Watch the full video for a full explanation!

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Видео Attorney Explains Why Meet Kevin is Wrong About $10k EIDL Grants канала Succeed REI