Hello, have questions about how I can use 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. If I pay the loan off early, I would still owe the full interest. Use our CARES Act SBA loan calculator to see how much money your business may qualify to get. Cookie Notice I have filed tax returns for 2018 and 2019 showing significant losses due to major construction expenses with no income as of yet. The Consolidated Appropriations Act of 2021 replenished the pool of EIDL money by $20Billion and the application deadline for the Small Business Administration's (SBA) Economic Injury Disaster Loan (EIDL) program has been extended to December 31, 2021. Id encourage you to get with a tax professional to try to get this taken care of. She said the EIDL can only be used for things that I wouldnt qualify for. Mind was declined due to incorrect information for bank. Copyright 2023 Merchant Maverick. I have a question please advise if possible. Im so co fused. Im an adjuster who applied to help me get through as we were slowed due to COVID. I did not realize at the time that the over amount was incorrect. Which Business Bank Account is Right For You? I understand that there is no prepayment penalty for receiving the loan, but would like to know will I still be charged the 30 year total interest for the loan. Privacy Policy. Easier borrower qualifications that help you build business credit. A lack of preparation is one of the most common mistakes that owners made when applying for PPP loans during the first round, says Rob Scott, Great Lakes regional administrator for the SBA. Im just lost now since I cant even get into the portal to check on my application process. You may also be required to submit additional information, such as your business name, federal tax ID, or other identifying information. Available. Business Credit Cards Without Personal Guarantee, Find Accounting & Payroll Software Reviews, Discover The Best Accounting & Payroll Software In 2022, Discover The Best eCommerce Platforms In 2022, Best eCommerce Platform For Small Business, Is Dropshipping Worth It? Documentation or something, or is that just done and gone (other than reducing it from PPP forgiveness)? Thanks, Congrats on getting your EIDL! I wish I could help but youre going to have to find someone with your lender to help you. I have been unemployed since ce 3/17/20, and I just been able to get through with Unemployment. If youre applying for an EIDL loan, you need the fundsand if your loan gets declined, it can be extremely discouraging. in the weekly question like this to answer yes or no , how can I answer correctly 1) any type of private income protection insurance during this week? I received a grant of $1,000 since I am a sole proprietorship. The business entity falls under one of the following categories: The business has fewer than 500 employees (or meets the SBAs small business size standard for their industry), The business is not currently involved in bankruptcy proceedings, That you live in a low-income area. ), 2019 Federal Income Taxes, including all schedules, for the applicant business (required), 2020 Federal Income Taxes, including all schedules, for the applicant business (if available), If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year, For nonprofit organizations, a complete copy of the organizations IRS tax-exempt certifications and complete copies of the three most recent years of Statement of Activities, IRS Form 4506-T (You will complete this online when you apply), SBA Form 413 Personal Financial Statement for general partners, managing members, and all owners of 20% or more of the applicant business (Not required for nonprofit organizations), Copy of government-issued photo identification of each principal owning 20 percent or more of the applicant business, Current year-to-date profit-and-loss statement, For loans less than or equal to $500,000: Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used), If you operate three locations but report all sales in one federal tax return, you should complete one application for all of your locations; or. There may be other business expenses that you need to pay that you could use it for and that may not affect your unemployment. Unfortunately, theres not a whole lot you can do here other than check on the status of your EIDL application. I have not received anything (info/money) regarding the EID grant? These loans were promised to be delivered in three days by the SBA and it has now been nearing two weeks with almost no money (only 4 businesses out of 2117 reporting), and businesses are dying as . Any suggestions now? Thanks for this its all so confusing between the loan/grants. 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? Generally you are not allowed to double dip with EIDL and PPP and use the funds for the same expenses. However we were also told that would not include personal real estate. Sally my accountant took all my info for the SBA loan and applied for it , but later in two months he said I was declined . The fasttrac asked if you have been convicted of a felony in last 7 years, I put no which is true. If you get a loan offered for above that amount make sure you read your documents and understand the collateral requirements. (Also keep in mind the repayment term for EIDL may be much longer than PPP which must be repaid in two years. so I contacted SBA and updated my new email address do you think I will be able to still get the grant? But I would like to know will I still be charged the 30 year total finance charges or will the finance charges decrease. After the virus related restrictions my business went down to 0. Thank you. Michelle They changed the grant to $1000 per employee. then you can call the Disaster Assistance hotline. (There is no personal guarantee for loans below $200,000.) Did any apply to you? A UCC-1 filing will be placed for loans above $25,000. Thanks and I look forward to hearing from you. Do this mean my loan will be approved? Borrower must pay principal and interest payments of xxx.xx every month beginning 12 months from the date of the Note. Well the EIDLs are gone What to do now since the EIDL is gone?!?!?! I am a sole proprietor real estate agent with no employees other than myself. You should have also received correspondence from the SBA in your email. What Is A POS System & Choosing The Best For Your Business, Discover The Best Business Credit Cards In 2022, Best Business Credit Cards For Your Nonprofit Organization, Explore Business Credit & Banking Resources, How Signing a Personal Gurantee Affects You. You should also reach out to the SBA. Yeah all of my banking info has been confirmed. We wrote about that in this article. Workers' Comp + Payroll made 100% for you. The rejection letter does not say if I need to reapply later? Please see question above. Erica's insights into personal and business finance have been cited in numerous publications, including MSN, View Erica Seppala's professional experience. SBA Turnaround Time: It is expected that it will take 21-31 days after an application is approved for funds to be disbursed. Hi what can I do in regards to the grant.. DO I still can get 10,000 EIDL loan as I have 2 employees or this 2,000 $ is all I got. Loretta You must work with the lender that gave you the PPP loan. I dont want to break the strict terms and conditions. You can report any suspected fraud online or by phone. My app was denied because of inaccurate info. In this case, the person is coming up short. If you applied through the COVID-19 portal, you will have to wait until the SBA contacts you regarding your loan status, even if you have an application number. I received my approval but have not signed closing documents and would like to lower the amount to 25k, can I still do that? If you got a PPP loan, and you're planning to submit a loan forgiveness application, you can start applying the day after your covered period ends and for the 10 months thereafter. Its important to note that the quote is NOT an approvaland it doesnt necessarily reflect how much your EIDL loan will be. Thank you! We asked that same question in this article: On the other hand, though, you may be stuck waiting on hold, as other business owners are also inquiring about the EIDL program and loan statuses. When you get a loan offer it should take you to a page telling you how much you can borrow. What counts as economic injury? If yes, should I reapply? How do I give this money back now without having to pay any interest? LET US SIGN! My husband and I own and operate a commercial office cleaning business. There will be an inquiry on your Experian personal credit report. Can $ be used to pay us what we normally would have made? That will take time, also there are likely to be a number of other applications under consideration. Work on your marketing, website, social media, accounting etc? It does say, An advance provided under this subsection may be used to address any allowable purpose for a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. Unfortunately we dont have access to that information. Im sorry Sally I wish there was more transparency into the program. Does that mean none of the ppp will be forgiven? Call back. No. Yes you can write yourself a check for documentation. Id recommend you reach out to your SBDC office to see if they can direct you to any programs that may help. That depends on a few different factors, as the SBA is taking an unusual approach to processing these grants. If i have recieved a loan offer..will i still recieve the Eidl grant if i decline the loan?? This article may provide more insights: 5 Ways You Can and Cant Use Your EIDL Loan. If you do default the SBA will likely try to collect but they may be limited in terms of what they can do. A primary one is that a small business has to show a loss effective January 31, 2020, to now and/or in the future, as compared to 2019 financials. What can I do? The SBA size standards for NAICS codes 621112, 621420, and 622210 are annual receipts of $13.5 million, $19 million, and $47 million, respectively. If yes, when exactly did you receive it please & how long did it take them to pay you after you were approved for the loan? Technically no but we have seen some business owners run into problems. He told me the following: "Please try to create the increase request tomorrow morning. You can always contact them directly using the information in this article. What about the grant? Am I expected to to sit and monitor the sba portal and pray to God that my timing is perfect? The bank I received my PPP loan from paid me the over amount. You should double-check with the service provider/financial institution directly as well as obtain independent financial advice prior to making any financial commitments or business decisions. Now I was approved by SBA thru EIDL. Sincerely, This is so disturbing. Any idea on time frame for the loan? I applied for the loan and just filled out my Board of Resolution . TERMS Also, is there a better breakdown of what fixed debts could be? You must be located in a low-income community (again, you can use this. To check the status of your Targeted EIDL Advance application and/or Supplemental Targeted Advance application, visit the SBA portal or call the customer service phone number listed above. How long until I receive the funds and what do I need to do to get the grant if I checked that I would need it? Even if I am not able to get a loan I will value the measures that have been taken to help hard working Americans. After that is done, in approximately 10 days you should receive an email showing that you were approved or denied . You may find PPP useful for payroll purposes however. thanks. I maybe would like some help on the application . it has now been 18 days since the credit pull and the $10,000 going in those accounts and NO WORD EITHER WAY??? You have federal tax liens of more than $10,000. What Is A POS System & Choosing The Best For Your Business, Discover The Best Business Credit Cards In 2022, Best Business Credit Cards For Your Nonprofit Organization, Explore Business Credit & Banking Resources, How Signing a Personal Gurantee Affects You. My loan status says amount confirmed identity verified completed electronic dispursement completed and application being processed does this mean I am just waiting for dispursement??? I want to keep the grant and decline the loan, what do I do? This is bull! I need a relatively big capital to start it up. EIDL loans offer much more competitive terms than traditional loan options. Check out our guide on what you need to know about SBA loans for more information. I recieved a acceptance offer and I accepted it was 2weeks ago how long do it take to get approved? Here's an overview of the SBA loan process and how long each stage takes: Borrower gathers documentation, and applies for loan (one to 30 days) Lender underwrites the loan (10 to 14 days) Lender approves the loan, and sends a commitment letter (10 to 21 days) Lender closes on the loan (seven to 14 days) That says The request is blocked. It is illogical to keep inactive numbers on banks' balance sheet. Im sorry its so difficult for you Michael. But first ill like to look over it . Ita all about how much they can make. maybe via check or something (since i think my routing number on last years tax form was screwed up) Warren is there a slider on the portal that lets you reduce the amount? And then what will happen with the grant? Should I still pay with interest of 3.7590%? I applied the EIDL I never received anything saying I was approved however there was a direct deposit that was rejected from my bank from SBA will I receive a check in the mail? According to the SBA, the way you apply is determined by how you file your federal taxes. We GREATLY appreciate your time and responses. What I mean to ask is, would SBA deduct the $1000 grant that they have already deposited in my account from the total approved loan amount? What Im still struggling with are the specifics of what I can spend the funds on. The Small Business Association (SBA) has increased availability of EIDL Loans from $500k to $2M and streamlined the process. Your information can be corrected over the phone. Hi Jon Ive attempted to tackle some of these questions in our new article. Or can I add my other bank account? Step 2: Further SBA EIDL Loan Increase Info Track your EIDL Loan Increase based on self-reported information. Are you familiar with this. if i applied for the loan and it sent me an email saying that i needed to update my advance request with correct information but instead i just filled out the application over will it affect me getting the grant. Hello I received a 1000 deposit which I assumed was the grant, but it was taken back out the same day. 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. The EIDL can be used for cash flow or the following two months of payroll if you choose. I will be notified by Email but my loan was declined because my credit score is too low and I will not get the EIDL Advance because my loan was declined.. There are still funds available in that program.