What is the EIDL Loan?
Have you found yourself and your business affected by recent economic hardships? Unfortunately, a lot of businesses, specifically small businesses, were greatly affected by the COVID-19 pandemic. As a response, many were able to apply for an Economic Injury Disaster Loan (EIDL), a loan meant to provide economic relief for small businesses and non-profit organizations experiencing a temporary loss of revenue to assist with working capital and normal operating expenses.
What does this mean for my bookkeeping?
While the temporary relief the EIDL loan can provide may have many benefits for a small business, bookkeeping still needs to be done, and the loan ultimately needs to be paid back.
The SBA (U.S. Small Business Association) requires that anyone who has been granted an EIDL loan must keep accurate accounting records for five years up until three years after the loan is repaid. (For example, if the money borrowed is paid off in 2021, you must continue to keep accurate records available thru 2024). In addition, as a borrower, your financial statements are required no more than three months after the end of the fiscal year, each year during the course of the loan.
The SBA can require inspections and audits of your books and records, and if your bookkeeping isn’t organized, it can come at a higher expense, from your own funds! This is where we can help.
We’re here to help!
At My Numbers Guy, we can keep your bookkeeping organized and readily available. When your fiscal year ends and should the SBA or IRS come knocking, we’ll have your information at the tip of your fingers and ready to submit.
At My Numbers Guy, we can take the tedious work of bookkeeping off of your hands and free you up to focus on taking care of and to grow your business during these hard times.
Information adapted from: