If you have questions, o. We just wrote about that in this article: 7 Questions About PPP and EIDL the SBA and Treasury Need to Answer ASAP. I’m just lost now since I can’t even get into the portal to check on my application process. This is when the loan portal would change from "processing" to “approved”. We were unable to successfully verify and validate all of your information in order to process your advance. Username or email. It looks like EIDL grants are tax free. If I wanted to pay it back early, We’ve written about that here: How to Pay Back an EIDL or PPP Loan. EIDL can be used for purposes other than payroll. On December 27, 2020 the President signed the stimulus bill which includes new emergency EIDL grants, new Paycheck Protection Program loans and other small business relief. ... We expect hundred of thousands of business to apply on FederalDisasterLoan.com. I’ve contacted both banks and nothing was received. I only got approved for 3000 loan that I am NOT gonna accept . Hello – I received a 1000 deposit – which I assumed was the grant, but it was taken back out the same day. From what the CARES Act states, the grant reduces PPP forgiveness. A loan officer will contact you to discuss the loan amount recommendation and your next steps. Beyond the time spent compiling your business plan and package of documents, the lender can take a minimum of 60 to 90 days to approve your application. He answered many questions (answers below) and did not rush me at all. If you get a loan offered for above that amount make sure you read your documents and understand the collateral requirements. The final tip for ensuring a fast and smooth application process for an SBA loan is to apply online. (Be sure to check with your tax professional.). Paul – We’ve heard from applicants who successfully used a personal bank account to get their EIDL grant or loan. Joanne – Are you using your EIDL funds for payroll? She has testified before Congress on consumer credit legislation. I am currently in the process of buying a new home and I was approved for the SBA EIDL with average credit scores and closing 5 weeks away. But have not received the $10,000 advance as of yet. An incomplete application will likely result in delays. Non-medical collections or charged off accounts with an aggregate of $10,000 or less and, foreclosures or deed-in lieu of foreclosures which occurred more than two years from the date of, the loan application are all considered an acceptable credit risk and do not require any additional justification.”, The SBA requires a business credit check from, Tip: You can check your business credit with. 1. What can I do? You can ask for reconsideration for the loan but since grant funds are exhausted I’m not sure it will help with the grant. You provide the bank account information when you apply so that’s where funds will be deposited. We applied for the EIDL on March 31st and checked the grant box. But unlike the 1,2,3 above for the first small business. Technically you can request more money but I can’t speak to how the SBA will allocate the funding available. Overextending or underutilizing credit can be a big red flag for … Your email address will not be published. On April 23, 2020, Congress approved an additional $50 billion for EIDL loans and $10 billion for EIDL grants. I don’t know unfortunately. I’m thinking your best bet may be to connect with your SBDC. What happens if I get the loan and still go out of business????? The SBA Disaster Loan Program is the only SBA loan program where the SBA lends directly to borrowers. I have a little income coming in and have prioritized paying payroll and buying materials to manufacture our product. Am I expected to to sit and monitor the sba portal and pray to God that my timing is perfect? Still qualify? EIDL was over $200k, so a personal guarantee is required on the loan. 3. I recieved a acceptance offer and I accepted it was 2weeks ago how long do it take to get approved? 3) were any amount payable to you from any retirement ,pension or annuity under a public or private plan/system? I wouldn’t expect the SBA to automatically send you anything more. Will the $10,000 PPP loan now only comprise of $8,000 forgivable because of the $2,000 cash advance? Please see question above. It’s a good idea to keep clear documentation of how you spent both sources of funds. DO I still can get 10,000 EIDL loan as I have 2 employees or this 2,000 $ is all I got. I got behind on credit cards due to construction delays and tropical storm, slow winter months and then COVID-19. This is what to do next. The time in business requirement has been waived. Homeowners and Renters: Submit a completed loan application and a signed and dated IRS form 4506-T giving permission for the IRS to provide SBA your tax return information. Some borrowers have been denied based on credit scores. Great article. You might put a note “EIDL” on those expenditures in your accounting program, keep a file with documentation, or even keep a spreadsheet for example. Just a small cleaning business. The terms do not apply to the “advance” . 5 Ways You Can and Can’t Use Your EIDL Loan. Have you seen any clarifications or guidance on this. When cash flow is tight, business owners often need access to financing yesterday. Am I allowed to LARGELY PAY DOWN the Principal balance(s) of my current outstanding PayPal business credit lines/PayPal business debts/PayPal business capital loans using the EIDL? If we accept the $150,000 loan, are we eligible for additional funds if congress provides more money for this program? The SBA will conduct a “credit available elsewhere test” in the review to see if the business has sufficient cash flow to obtain a loan other than the EIDL. Also, I will be applying for reconsideration; what information can I provide to successfully be reconsidered and approved for the EIDL?? Payments of $93 per month starting 12 months after closing. Have at it! SBA does not provide any info and most accountants have no idea and (mine included) will not provide “concrete” answers. We are reaching out in regards to your request for an EIDL advance as part of application number #0123456789. I am now in need of using some of the funds (they are so far sitting in their own account and nothing done with them yet). What can I do now if I want the EIDG and not the EIDL? On 04/14/20 I recieved an email from SBA informing applicants that the advance amount would be $1000 per employee with a $10,000 max. Am I allowded to PAY OFF IN FULL these outstanding PayPal debts Using the EIDL to avoid accumulating interest on them? I recived an email tht my SBA EIDL is still processing. The SBA is relying on businesses to self-certify eligibility. Show some patience; they want to help you. Does everyone get the grant? The Economic Injury Disaster Loan program through the SBA is a long-standing program intended to help businesses hurt by tornados or wildfires. I understand I don’t have to start payments for a year but interest will still build. But I’d suggest you reach out to SBA. This is a two-part … I didn’t want the loan I wanted the grant. Can I apply for the payroll tax credit having received the $4K grant? As of April 20, the SBA reported that 26,919 disaster loans had been approved for a total of $5.6 billion, and 755,476 EIDL emergency grants had been processed for a … Another 5 days for closing docs to arrive on 4/18 to sign online and then money for the loan put in my account a 6 days later on 4/24/20 1,2,3 and done. Beth – EIDLs are designed to help businesses survive a disaster. Live in a rural area with spotty internet. Thanks. Read more about the, Low fixed interest rates: 3.75% or 2.75% for non-profits, Here are answers to some common questions from small business owners about. I have called the SBA and nobody is on the same page or they brush you off by giving you an answer that is no where near what you have asked. There’s a lot of discussion about this going on in the Chris, I have not seen guidance on that topic. Additionally, the application asks for gross revenues (not “income” – if you mean your income) and COGs. This article may help: How to Apply For Forgiveness for Your Paycheck Protection Program Loan. Did any apply to you? Given the backlog of applications, should I still apply to the Paycheck Protection Program if I … ), You need to update your info the SBA no longer states the loan advance for Economic Relief will be in 3 days! Best I’ve found in all my searching. I applied and received funding for a EIDL loan but just needed clarification on how the funds can be spent. Gerri, (I don’t know the answer to your other questions. Now I don’t know if I will be approved. So it would be good to know this. Thank. I know you can’t do both PPP and the Tax Credit, but not sure on doing both EIDL $10k grant and also 50% payroll tax credit. Laura – Call your elected officials in Washington. You do not have to accept the loan. The SBA's goal is to decide on your application within three weeks. Keep an eye out for an email from SBA. Since it’s for my business ? That is approved also but not yet funded. I have a s Corp and a small ranch. Loan underwriting is the process in which a bank, loan provider, or online lender reviews your application and determines the risk and benefits to loaning you money. I am sure if this means I am fully approved for it or not. You can pay off the loan early without a penalty. I maybe would like some help on the application . Mail your request to the address at the top of the decline letter or I did do that today. ... We expect hundred of thousands of business to apply on FederalDisasterLoan.com. I want to know if I can use the EIDL loan for payroll when the PPP loan is paid out in 8 weeks? But I am still worried. I apply for a loan for my printing company and got $1000.00 . I was able to get thru an explained my concern that SBA did a hard pull on my cr and I haven’t recieved an email or deposit an was wondering if I am correct about I should recieve the Advance now because I believe by pulling my cr I have successfully submitted an application…. If I pay the loan off early, I would still owe the full interest. I applied for the sba loan back in June , I got approved and funded, I have been a self employed working as a taxi driver and delivery driver since 2016. It may help you understand where you are in line. Resource partners such as SBDCs, SCORE and Women’s Business Centers can help as well. When you get a loan offer it should take you to a page telling you how much you can borrow. The FB page is incredibly difficult to navigate though, in order to find specific suggestions. They may reach out to you at some point so make sure you provide a phone number you will answer and an email address you check regularly. Before COVID, I was planning to purchase a home. I suggest you also read: New EIDL $10,000 Grants: Do You Qualify? 1. This paradigm shift will affect all small to mid-size businesses. I am an independent contractor and applied for an EIDL. The SBA offers disaster assistance in the form of low interest loans to businesses, nonprofit organizations, homeowners, and renters located in regions affected by declared disasters. I am an independent contractor. I did not realize at the time that the over amount was incorrect. Check with your lender to see if they can tell where your application is in the process and if you have a loan origination number from the SBA. We were approved for the EIDL Loan. Notice: The deadline for Economic Injury Disaster Loan (EIDL) applications has been extended through Dec. 31. I would contact the SBA asap to make sure the funds didn’t go to the wrong account. That’s not our understanding. After reviewing your application, the SBA makes an initial loan decision. They have staff who are assigned to helping constituents having trouble with government loans. You’ll want to look at section 1110 and then Use of Funds. I only applied for the EIDL grant and received $4,000 for each of the 4 employees we have. If a loan is approved, offered, and accepted (all in writing for you to review), the SBA will prepare and send Loan Closing Documents to you for your signature. We are a small not profit, but understand we have enough money to keep us through the Pandemic. (Very clearly lost a lot of money March through May in reduction of customers, but after this it reduces as business picks up & maybe a lawyer could argue July maybe is “just a low month”, would I need to prove its covid related and how?) Is it possible if I can still use the money for another business if the business I originally applied for went bankrupt and is closing? What’s should I do. These loans can serve different purposes. Do they look at history or just current credit scores? Please let us know what happens in your situation. According to the SBA, “economic injury” is defined as: [A] change in the financial condition of a small business concern, small agricultural cooperative, small aquaculture enterprise, or PNP of any size (excluding religious organizations) attributable to the effect of a specific disaster, resulting in the inability of the concern to meet its obligations as they mature, or to pay ordinary and necessary operating expenses. Borrower may prepay this Note in part or in full at any time, without notice or penalty. However, the actual text of the Cares Act is here if you care to dig in. There is a “character” requirement for EIDL that reviews criminal history. If a business loan is received from SBA and the business ownership is amended and transferred to my partner in the future due to unforeseen circumstances, will the business loan transfer to the sole owner? If I did the advanced ? I’m loosing money like everybody else. Would this disqualify me from applying for the 10K EIDL Loan? Do you know what the certification means that says “if feasible I will purchase American-made goods and products”. Applied I was eligible for 80k, went back to check on my application and it said $0 declined. If you are requesting a disaster loan due to COVID-19 you will. Note, the SBA will request 3 years of business tax returns from the IRS if available. (Loans are not taxable generally unless they are forgiven. This is an SBA loan and generally they don’t appear on consumer credit reports. Q. Access your SBA Economic Injury Disaster Loan Portal Account to review your application and track your loan status. Both said it would be the the same as if I paid it off over 30 years. Do you have any information on how/where to repay the loan? Just don’t submit it. Please advise. David – I checked with Bob Coleman publisher of The Coleman Report which is one of the leading training firms for SBA loans. I applied June 2020 and was almost immediately accepted and sent a portal application. So now its 4 days later 05/01/20 no email an no deposits We don’t have specific guidelines from the SBA in terms of what will result in a successful reconsideration. Your second question is an excellent one. You can apply for EIDL if you were in business before the date of the declared disaster – January 31, 2020. Me and my husband have LLC, we work as a independent contractor 1099 tax, no employees, no payroll. Get Assistance In Obtaining Your Small Business Administration (SBA) Loan Up To $2,000,000 For Businesses Impacted By The Coronavirus. Fill out the Application Form in Full. The inability to access the promised funds quickly — or in many cases even receive confirmation that their application is being processed — has led to a mixture of panic, anger and fear. The SBA's goal is to decide on your application within three weeks. Check your email for updates (check your spam folder as well) and monitor your bank account to see if the grant has been deposited. Well the EIDL’s are gone What to do now since the EIDL is gone?!?!?! It seems odd that they specifically say you can apply as an individual contractor but then say you must use the grant money for payroll and not for other purposes in such a situation. Athena – contact the SBA Disaster Assistance hotline asap and ask for help. According to the SBA, you should send your application number and information required to overcome the reason for decline via email to firstname.lastname@example.org or mail to the U.S. Small Business Administration Disaster Assistance Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas, 76155. Notify you if you must provide a satisfactory explanation and be able to reopen till September t be able repay. Many questions ( answers below ) and ask for help done as a capital. 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