So it would be good to know this. If you have questions about your individual situation or application, we recommend you call SBA Disaster Assistance at 1-800-659-2955. You can use this method if you submitted your application online or by mail. Can I simply transfer funds to my other account and call it payroll or do I need to break it down to specific items (vehicle payment, house payment, electric, etc..). Can you find information there on repayment? We applied for a $2M EIDL loan and given the SBA directive to cap at $150,000, just learned we have approval for a $150,000 loan. I sweat in the sun and have essential duties. I have not spent it and don’t want it anymore. I don’t see where I can decline the loan. We haven’t seen the SBA publish these statistics so without that data it’s hard for us to estimate. Just spoke with a representative by phone (1-800-659-2955) and was told that there is no possible way to check my current status of the EIDL Emergency Advance grant. Mail your request to the address at the top of the decline letter or MAKE SURE YOUR NAME, BUSINESS NAME, AND APPLICATION NUMBER ARE IN THE EMAIL. No, unfortunately, you cannot use EIDL or PPP for a startup. Generally, a history that consists of minor, isolated instances of adverse credit or late payments is acceptable. You should also reach out to the SBA. This is in the EIDL and the PPP. No. It is very nerve-racking! Responses have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered. Credit: Cue378 an avid supporter of small businesses. After your loan is approved, talk to your lender about the next steps. I don’t know why you didn’t get the grant. Your thoughts?? Can I payoff my short term loan with my EIDL funds? If a tax return is still required, you will likely have to submit IRS Form 4506-T “Tax Information Authorization” with the disaster loan application. You’ll have to check with unemployment.). Thank you so much. Loan funds for your sales and income losses will not be offered. Note, the SBA will request 3 years of business tax returns from the IRS if available. it has now been 18 days since the credit pull and the $10,000 going in those accounts and NO WORD EITHER WAY??? But, on the next page under the “How Can I Use the Money?” section, it lists more stuff than that, so I’m trying to determine if that stuff under “How Can I Use the Money?’ is also forgiveable under the $10k grant, such as “fixed debts, accounts payable, and other bills”? Last step is to sign loan docs. Thanks. 2. You can accept the grant and decline the loan. It looks like EIDL grants are tax free. Any loan offered to you (sole proprietor) or your business by the SBA after reviewing your application will have a 12-month no-payments grace period or “deferral” starting the day the approved SBA loan note is signed. Zaki – I’d recommend you call the SBA Disaster Assistance hotline and find out the status of your loan application: 800-659-2955. Yes you can still apply. Make sure you fill out each question that has an asterisk, as those are required. But I submit the bank accounts under my wife personal name If that $10,000 is subtracted from the PPP forgiveness amount is there any reason to also apply for the EIDL? But you’ve correctly observed that the new PPP 24-week period for forgiveness doesn’t match the loan amount (which was based on roughly 10 weeks of payroll.) 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. This should be on SBA website, much better explanation then SBA Q&A! Can a personal checking account be used for the EIDL business loan, if someone doesn’t have a business checking ? But I don’t want the extra $9,000. The only other thing I can recommend is to contact your Senators and Representative in Washington as this is a federal program. If you included truthful information in your application and they approved you for that amount and then I see no reason why you should be concerned just because you are self employed. I only applied for the EIDL grant and received $4,000 for each of the 4 employees we have. Am I Eligible If I Already Have a Disaster Loan from a Previous Disaster? I was told to apply online and complete the info in reference to my income and cost of doing business for the last 12 months and the amount of my loan/grant would be based on that info up to $10,000 . The bank I received my PPP loan from paid me the over amount. The SBA's goal is to decide on your application within three weeks. Do you know how?. I applied for EIDL loan on 3/30/2020 and I just received 2,000 $ on 04/23/2020. Read about and apply for a new PPP loan here. All EIDLs will automatically include a 12 months loan payment deferral for the first payment on … Right now the portal is closed so you can’t reapply. Read more about the new EIDL grants here. Is there a personal guarantee required now or in future for the 150,000 loan. 6/3 - Still No change since 5-25. If you get a loan offered for above that amount make sure you read your documents and understand the collateral requirements. While SBA loans normally carry a personal guarantee, they have been waived for COVID Disaster Loans, up to $200,000. He then updated me on my loan request… SBA will apply each installment payment first to pay interest accrued to the day SBA receives the payment and will then apply any remaining balance to reduce principal. I didn’t receive any grant money but am now signing my EIDL loan paperwork. I’ve received an email that I have multiple applications in process that one of them will be withdrawn while I’ve filed just one application which is mentioned in the email that is withdrawn. How will the SBA contact us moving forward? The time in business requirement has been waived. Received $40k EIDL….work is slow which is why we applied. I’m confused how the $10K EIDL grant may impact the forgivable PPP loan amount. Does this disqualify me for the EIDL loan? However, the borrower will not be denied solely because there is no collateral. The rejection letter does not say if I need to reapply later? They now state “days within”, FYI the CARES Act states: “within 3 days after the Administrator receives an application from such applicant.”, Hello Gerri, In previous disasters, processing has taken as long as an average of 45 days. I need a relatively big capital to start it up. You can ask for help. Paul – They should be able to get it with a personal checking account. Thanks. David – I checked with Bob Coleman publisher of The Coleman Report which is one of the leading training firms for SBA loans. I appreciate. My business did not get the grant, I was told my routing number goes to another bank and I read it straight of the check. 5 Ways You Can and Can’t Use Your EIDL Loan. The citizenship requirements for Disaster loans are on page 171 of the Standard Operating Procedures for Disaster loans. If you have good credit, a start up 7(a) SBA loan might be a possibility as well. Call 1-800-659-2955 (the SBA Disaster Assistance customer service center) and ask for Tier 2. But first ill like to look over it . Thanks for the information. Will it go against my debt to income ratio? I haven’t seen specific guidance to answer your question exactly. Do they look at history or just current credit scores? I’m just lost now since I can’t even get into the portal to check on my application process. Share If you find that your small business is struggling financially as a result of the coronavirus pandemic, follow this guide to submit an online application for an SBA loan. For the EIDL, matters are a bit trickier. No the loan is not forgivable. I received from the sba an email approval for the eidl loan at 3.75% interest. I’d recommend you contact the Disaster Assistance hotline at 1-800-659-2955 to get an answer to your question. Joanne – Are you using your EIDL funds for payroll? RE: COVID-19 EIDL Advance for SBA Disaster Loan Application Number: Dear Joe Doe. David – I’m not sure I understand your question. Was told approval was waiting on 2nd stage and keep waiting. Password. What happens if you only show $20k to their satisfaction? 9. Will the EIDL show up on my personal credit report? Hello! We'd love to hear from you and encourage a lively discussion among our users. If you applied previously and your application number started with a “2” you may want to apply again. That says “The request is blocked. How long after until i receive the funds? We’ve heard some people found a message from the SBA there. You can apply for EIDL if you were in business before the date of the declared disaster – January 31, 2020. Same person applies for the PPP, and on the application answers “no” that they did not receive funding from EIDL cash advance, because at the time, that was true. You have up to six months to request a reconsideration. I was approved for EIDL but haven’t been funded yet. High or low debt utilization. Disaster Business Loan Application (SBA Form 5), Disaster Home/Sole Proprietor Loan Application (SBA Form 5C), Economic Injury Disaster Loan Supporting Information (Form P-019), Request for Tax Information Authorization (IRS Form 4506T), Personal Financial Statement – Disaster Programs (SBA Form 413D), Schedule of Liabilities Worksheet (SBA Form 2202), Monthly Sales Figure Worksheet (SBA Form 1368), You can contact the SBA by calling 1-800-659-2955 or by email at. Although we will be monitoring and updating this as new information becomes available, please do not rely solely on this for your financial decisions. This paradigm shift will affect all small to mid-size businesses. What counts as “economic injury”? Linda – Unfortunately the SBA is the only place that can answer that question. All one after another. I was counting myself as an employee because i work for myself. When I do open I will owe the Landlord $8,000 in back rent. That is for personal and real property damage only disaster loans like from a hurricane. All EIDLs will automatically include a 12 months loan payment deferral for the first payment on … I applied for the EIDL and PPP programs in march. 2)any amount as a supplement unemployment (SUB pay)? I haven’t received either the grant or loan. I’m a not a permanent resident. Will i get the amount approved for or a different amount? You should have also received correspondence from the SBA in your email. We are reaching out in regards to your request for an EIDL advance as part of application number #0123456789. If that comes up in their system it may result in a decline but it’s hard to say after that length of time. The SBA is already being flooded with questions and subsequently will be flooded with loan applications. Hi I filled the application out for the SBA, I recieved an email stating that the SBA EIDL Loan was declined do to unsatisfactory credit history. After the national disaster was declared in March 2020, funds became available to help … When I was applying for the loan I used my 2018 tax return to fill up the questionnaire because i had an accident toward the end of 2018 and didn’t resume driving till January 2020. Interest at 3.75% APR will continue to accrue during the deferral period, but no payment will be due for 12 months. You can request additional funds in the future if needed. Great question Chris. Posts EIDL Support Group CaWeb Portal PPP Posts Go Here Other Disaster Loans EIDL Portal Login. As an owner, I am not a W2 employee, others are ICs, and one admin that is a W2 employee. The SBA Disaster Loan Application Process The first step in applying for SBA disaster loan assistance is to submit an insurance claim. as a courtesy guide. Check your spam folder frequently as well. in Regards to IRS Taxes, Can i use the EIDL to Pay off or Make Payments to the IRS for Schedule C Buisness taxes owed, or taxes yet to be filed, for the years 2019 Q1 of 2020, or Q2 of 2020? Make sure you are in the right application. My loan EIDL was approved. Will that loan show up on my personal credit report? Can i use the EIDL proceeds for payroll if i plan to use forgiveness in PPP. I recieved a acceptance offer and I accepted it was 2weeks ago how long do it take to get approved? Thanks, Congrats on getting your EIDL! If you received EIDL (which comes directly from the SBA not a bank or other lender) then you may use it to pay those working capital expenses which may include contractors. Now the SBA is asking that I sign loan documents. I do have a SBA loan for our property and new construction approved in July 2018 and completed in August 2019. Perhaps that will help: 5 Ways You Can and Can’t Use Your EIDL Loan. Fill out an application for each business. Thank you very much for your time writing this great article! Do I need to reapply for the s Corp app? These are separate programs with separate requirements. For SBA disaster loans, you have the option to apply online or submit a paper application via mail. Hello, I am in your same situation, could you inform me if you got any unemployment response when you request your payment afther the grant, thank you so much. As I mentioned to Samantha, I can think of three possible scenarios here: 1. I don’t want to break the strict terms and conditions. Gil – The DBA isn’t an issue as far as I know. It is not part of the terms and agreement conditions of applying for the loan. The SBA sometimes refers to these grants as “advances,” but you are not required to repay this money to the government. I put no which is why we applied d have to pay back that $ 10,000, of... 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