July 16, 2021

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Child Tax Credit payments start this week

Good news for parents this week. As of Thursday, July 15, the IRS will start making Child Tax Credit payments to eligible families with dependent children. According to the New York Times, almost 90%—you read that right—of American families may qualify for the Child Tax Credit:

Among America’s 74 million children, nearly nine in 10 will qualify for the new monthly payments — up to $250 a child, or $300 for those under six — which are scheduled to start on Thursday. Those payments, most of which will be sent to bank accounts through direct deposit, will total half of the year’s subsidy, with the rest to come as a tax refund next year.

The American Rescue Plan, signed earlier this year, expanded the credit for one year—but unfortunately, many of those impacted may not know about the expansion or that they are eligible. A recent SaverLife survey found that “Two-thirds of respondents have not heard a lot about the expanded credit and what it means for them, and nearly 30% indicate having only heard ‘a little’ or ‘nothing’.”

Don’t let the credit pass you by. Read our guide to claiming the Child Tax Credit here.

SBA Loans Series, Part 5: Community Advantage Loans

We know how crucial access to capital will be this summer. That’s why we’re highlighting a helpful Small Business Administration (SBA) loan program each week.

We’ve talked about the SBA’s 7(a) Loans before. This week, we’re focusing on a pilot within the 7(a) program: Community Advantage (CA) Loans. This program helps small businesses in underserved or low-income areas access 7(a) loans. With more flexible eligibility requirements than standard 7(a) loans, it is an ideal option for those who may face barriers to accessing traditional funding, like:

  • Startups
  • Businesses in “risky” industries, such as food & beverage
  • Women entrepreneurs
  • BIPOC entrepreneurs
  • Veteran entrepreneurs

Maximum loan amount: $250,000

Maximum SBA guarantee: The SBA will provide a 85% guarantee for loans of $150,000 or less and 75% guarantee for loans of $150,001 or more.

Learn about eligibility and how to apply in our full guide to SBA Community Advantage Loans, and tune back in next week for another loan spotlight. You can check out our full list of SBA loans here.

It’s time for forgiveness

If you took out a Paycheck Protection Program (PPP) loan in 2020 under the 24-week covered period, it may soon be time to apply for forgiveness if you want to turn the loan into a grant. The deadline to apply for forgiveness is within 10 months of the end of your covered period. For some businesses, this will be coming up in September.

It can take time to get through the forgiveness process, so we encourage you to apply soon. For more information about the forgiveness process and how to apply, read our PPP round 2 forgiveness primer.

Pick from our partners

IFundWomen Entrepreneur of the Year 2021

IFundWomen Entrepreneur of the Year is IFW’s biggest funding program yet and aims to celebrate extraordinary women entrepreneurs who have proven product-market fit, driven growth, and demonstrated a meaningful impact through their businesses. The program will be awarding one grand prize winner with a $100,000 equity investment, and hundreds of thousands of dollars in monetary grants and coaching scholarships will be deployed to category honorees and runners-up. Apply here.

Bonus: Want help with the application process? There’s a workshop for that.

USBC x Truist: Small Business Planning & Growth Webinar

Tune in on July 29 at 10am PT | 1pm ET for a live session on all things business planning with experts from Truist. Register here.

Find the latest relief options in our Small Business Relief Finder.

Want more news and resources? Check out past editions in our archive.

Mohini Kundu Mohini Kundu is a news editor on the Gusto content team. She studied journalism at Northwestern University and started her career at The Huffington Post before embracing the #startuplife.
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