If you are a small business owner and you either self-employed or you have up to 10 employees or any number of employees actually And you suddenly looked in your bank account and you’ve got this strange deposit tell you some characteristics about it.
First of all it will be in a multiple of a thousand. So it’s either one thousand ,two thousand, three thousand, four thousand, it can be as much as ten thousand. and you’re sitting there scratching your head going what the heck is this? free money? what did i do or somebody made a mistake.
What does SBAD TREAS mean?
First four letters SBAD, that’s basically small business administration department. the TREAS, is treasury and then the four letters at the very end is EIDG. Now I’ve done the homework on this. fortunately I’ve got a couple clients that have seen this already. So I already know what it is and I’m able to help you with it.
What does EIDG mean?
EIDG is the emergency injury disaster grant. That’s your money. you get to keep it. if you applied for an emergency injury disaster loan, some recent period of time ago, and all of a sudden this free money dropped in. but you don’t know what the heck’s going on with the loan you’re scratching your head over it. and like I say it can be up to ten thousand dollars I’m going to help you out with this. All the research I’ve done it is your money to keep. If one or two weeks down the road they tell you we’re so sorry, but we can’t approve your loan. you still keep the money.
Related : https://whalegrows.com/11-tips-to-manage-taxes-and-finances-for-parents/
That’s taxable income. so you will have to claim it next year in 2021 for your 2020 taxes. but I’ll tell you a little bit more about it.
If you’re self-employed and you have nothing but independent contractors that means that basically the government sees you as having one employee. so that amount’s going to be one thousand dollars. If you are a husband and wife and you have one additional employee, so there are in fact three employees for whom you are applying for disaster relief for, that amount is going to be three thousand dollars.
So if you’ve got seven thousand bucks all of a sudden, then just count the number of people that you put on that EIDG loan application, chances are it’s going to be some version of seven.
You keep that whether or not they approve the loan. so spend it on your business or whatever it is you want to do.
Related links :
https://www.sba.gov/funding-programs/loans/make-payment-sba
