Stimulus Check Update: Mistakes to Avoid When Applying for EIDL & PPP Loans

Nav Education Director Gerri Detweiler reveals important tips to help small business owners get the funding they need to keep powering forward. Subscribe to GoDaddy on YouTube: http://bit.ly/GoDaddy-Subscribe

0:17 Tips for applying for the new stimulus bill
0:34 What is your net profit and why does it matter?
0:52 Which SBA loans are submitted to the Small Business Administration?
1:02 Which loans do you send to a lender?
1:18 The importance of getting a business bank account
1:40 How to spend EIDL or PPP money

When it comes to applying for the new stimulus check update, the biggest mistake small business owners make is not having updated financial information available. Gerri Detweiler says line 31 of a Schedule C or Form 1040 will reveal your net profit — and that’s a crucial number to help determine what you may qualify for in a PPP loan. While they’re all considered SBA loans, only the Economic Injury Disaster Loan (EIDL) goes directly through the Small Business Administration — other stimulus programs like the PPP go through a lender. Another big mistake business owners make is not having a separate business bank account for the purposes of getting any kind of small business loan or grant. Lastly, for those who receive a stimulus check, EIDL grant or PPP loan, it’s important to be aware of exactly how that money should be spent to avoid issues with the SBA. For those who missed out on the stimulus funds the first time around, there are deadlines and limited funding available. So if you qualify, don't miss out on this opportunity and apply now.

Learn more about “New stimulus bill: 5 mistakes that can cost you a COVID relief grant or loan” on the Open We Stand blog: https://www.openwestand.org/new-stimulus-bill-5-mistakes-that-can-cost-you-a-covid-relief-grant-or-loan

References:

PPP loans supported 51M jobs in 2020, as much as 84% of all small business employees. https://home.treasury.gov/system/files/136/PPP-Results-Sunday.pdf

The overall average PPP loan size: $113,000. https://www.fundera.com/resources/ppp-loan-statistics

32% of small business applicants turned to online lenders in 2020. https://www.fundera.com/resources/small-business-lending-statistics

27% of small business owners use the same checking account for personal and business finances. https://smallbiztrends.com/2017/03/same-bank-account-for-business-and-personal.html

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Resources for Small Businesses:
Venture Forward study: https://www.godaddy.com/ventureforward
GoDaddy small business tools and resources: https://www.openwestand.org
Up-to-date info on COVID-19: https://www.cdc.gov
COVID-19 resources and grant information: https://www.covid19businesscenter.com

The information contained in this video is provided for general informational purposes only, and should not be construed as an endorsement or advice (including legal, tax or otherwise) from GoDaddy on any subject matter.

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