What should I do in this case? We GREATLY appreciate your time and responses. Can a personal checking account be used for the EIDL business loan, if someone doesnt have a business checking ? once that's received by SBA, they will fund you in 2-3 days afterwards. Any additional applications will be marked "duplicate" and will not be processed. Catherine did you accept the loan on the SBA portal? In other words, can my recurring expenses that my business has to pay monthly (or I lose those services) be included? Chris is a graduate of the University of Central Florida. Guidelines for those who process SBA Disaster Loan applications state: For disaster lending purposes, satisfactory credit history is defined as a history that generally shows payments to creditors as agreed unless otherwise justified. 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. But I submit the bank accounts under my wife personal name Im wondering is there a limit on how much we can repay ourselves with this loan for lost wages, Im self employedand it says show receipts, do we just save our receipts and turn them in at some point? What about groceries? Please let me know. The SBA plans to continue accepting new EIDL applications through December 2021 (pending the availability of funds).. I have major confusion as to what to do next. Community Experts online right now. You can also email TargetedAdvance@sba.gov. I selected 1 for the number of employees. I didnt realize that its a loan that is not going to be forgiven. Seems to easy almost free. Thanks. I have been paying a substantial amount of rent and mortgage interest since last year when construction began and have 2 employees. If you get an EIDL loan it must be repaid. Expected $10,000, now only receiving $8,000 since they basically have to take the $2,000 cash advance received and pay the lender/bank for the non-forgivable portion. There are a lot of business owners sharing their experiences with these programs there. How can I check my status? 3. SMH, If I used my personal Checking account For my LLC I was told by peers it will be denied can you inform me if this is true. I have zero employees. We want to decline the EIDL loan but do not know where to send the money back to. I am not interested in it though today I received an email saying 636(b)(2), including and then goes out to spell specific uses enumerated above. How will I be eligible? 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 didnt resume driving till January 2020. Is there written guidance on what this means? Otherwise you wouldnt be able to get any grant money. Is the EIDL loan forgivable? We were about to hire 8 individuals and start shipments of product that was just received from our manufacturer 2 weeks prior to the shutdown. These steps are necessary to continue to process your application. By Phone. Hello, I already have a SBA EIDL loan. If you get a loan offered for above that amount make sure you read your documents and understand the collateral requirements. How may I correct this information. 882 0 obj
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And how can I pay my debt just through online? endstream
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<. It's like going to. For COVID-19 related EIDL you must be in business before January 31, 2020. It clarified that an affiliate is a business that you control or in which you have 50% or more ownership. Can I payoff my short term loan with my EIDL funds? Does this mean I dont get the advance as well? Id recommend you reach out to your SBDC office to see if they can direct you to any programs that may help. Applications will be accepted through Dec. 31. I was just wondering can you receive unemployment benefits and the loan? Just remain persistent, and youll be successful in getting a status update. Be Persistent & Proactive When Checking EIDL Loan Status. I just means they have it and are going over it. I have made payments since then, all auto and mortgage payments are paid on time. If youre still not sure, your local SBDC should be able to help you understand how EIDL can be used. We were approved, have no employees. No. In addition to the guidelines above you may not qualify if: Its recommended that you lift a credit freeze before you apply. I appreciate. It is not part of the terms and agreement conditions of applying for the loan. Weve seen some people get denied and some approved with personal checking accounts. Yes. If you applied online, have your application number ready. More information here. I wish I could help but youre going to have to find someone with your lender to help you. I applied for the loan and just filled out my Board of Resolution . Thanks. I feel like I been tricked by this hole EIDL process, It dont seem right but I don t know? Thank you. If the applicant business (or the owner, if the business is a sole proprietor or an independent contractor) is currently in bankruptcy, the applicant business is eligible if it is operating under an approved plan of reorganization under either a Chapter 5, Chapter 11, Chapter 12 or Chapter 13 bankruptcy. Answers are vague at best online and after waiting 2 hours to speak to the SBA i was shocked to discover they wont answer any specific questions about how to properly apply the EIDL funds, and really arent even sure themselves . The SBA language states that funds should appear within five days after approval. This article may help: 5 Ways You Can and Cant Use Your EIDL Loan. will they contact us when we need to start paying back? Youll want to look at section 1110 and then Use of Funds. I dont want to show up at tax time to find out that my new equipment wasnt allowed to be purchased with this $. In the tail end of a Refinance. Technically you can request more money but I cant speak to how the SBA will allocate the funding available. And I cannot understand why most of my friends were applied at the same day then they got it. There have been complaints similar to yours unfortunately. endstream
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and our EIDL can be used for working capital to pay bills the business would have been able to pay had the disaster not occurred. . where can I find information on repayment? While some borrowers have reported receiving funds a few days after their credit was pulled, others were still waiting on their funds despite their credit being pulled. How do I give this money back now without having to pay any interest? Home Blog Business Loans SBA EIDL Funding Timeline: What To Expect During Application, Approval, & Processing, Save money on credit card processing with one of our top 5 picks for 2022. 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. She says since its been 4 days an I didnt recieve a deposit after my cr being pulled she was transferring me to a Tier 2 representative, after a brief hold I was connected an explained my concern, the gentlemen asked for my app # an was able to look up my status. Ita all about how much they can make. Could I use EIDL as a working capital but payrolls? you write: Just a small cleaning business. You must subtract an EIDL advance from your PPP loan for forgiveness purposes, but thats not the case with the EIDL loan. Thanks. Great Help you answer all my questions!!! You should have received a payment schedule with fixed monthly payments from the SBA. You may want to call the SBA Disaster hotline to see if they can answer your question. While SBA loans normally carry a personal guarantee, they have been waived for COVID Disaster Loans, up to $200,000. Please see question above. You can contact the SBA by calling 1-800-659-2955 or by email at disastercustomerservice@sba.gov. The grant and loan are separate. Normally grants are considered taxable. 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. What can I do? These grants do not have to be repaid and they are not taxable at the federal level. 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. Our Delays in processing loans and other business owners seeking answers have made things a bit chaotic for the time being. If you are on Facebook Id recommend you check out the Facebook group Business Loan Insight Financing Hub PPP, EIDL and More on Facebook where applicants are sharing their results by application number. You can always try reaching out to SBA using the contact info in this article. Thank you for your attention. Submitted online application many days ago for the EIDL. Some applicants havent received an email or phone call from the SBA but did receive a deposit in their bank account from the SBA with an attached application number. You can ask for help. Make sure to have any additional questions ready if you call or email, so you can get the answers you need more efficiently. To apply, you. Typically I need money made during this time to pay for hotels, camera equipment, expendable supplies like photo paper & independent contractor payments. This deferment does not apply to non-COVID EIDL loans. I received an EIDL loan approval amount and signed the closing documents. SBA loan programs foster job creation and economic development. boxes. The SBA is not accepting new applications and is no longer processing requests for loan increases or appeals. Yes, We did. Which was approved and paid. Applied for EIDL loan on 04/03/20 application # 33017***** also asked for EIDL grant. I havent signed any loan documents so far. Will this 50K loan show in my personal credit report if I accept it ? Lendio is a free-to-use marketplace that allows you to compare lenders side-by-side. The only other thing I can recommend is to contact your Senators and Representative in Washington as this is a federal program. You applied early before the application which allowed you to request the grant was available. My total payroll for 24 weeks is more than what i received in PPP. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. Disclaimer: Merchant Maverick aims to provide accurate and up-to-date information to assist you in your research. We were not sure if this means we are approved and now just waiting on SBA? He says, You are only charged interest on the outstanding balance. That seems to match the loan terms you mentioned. Not sure what to expect. Unfortunately we dont know how quickly loan applications are being processed. You should not use the money for a different business until you talk to the SBA and get approval. I would suggest you call the Disaster Assistance hotline (in the article) and ask their guidance. The application portal is closed. They are the only ones who can cancel the loan. But have not received the $10,000 advance as of yet. 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. I have emailed since the portal disappeared, but I have not called since then. Im a sole proprietor LLC. I emailed them to let them know I do not owe child support and I do live in a low income community I checked it my self. 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. Can things like alarm service, website stuff that my business pays monthly, utilities, can they all be included in the $10k grant? For example, you may be required to start during a semester other than the one you applied for , take part in a special college-readiness program, or complete additional foundation courses. Still waiting to sign my signature. You can also access the SBA Assistant. I checked the box for consideration of the advance, but they approved me so quickly. We wrote about that in this article: 5 Reasons You May Want to Reconsider An EIDL Loan. so I contacted SBA and updated my new email address do you think I will be able to still get the grant? Applications for SBA COVD-19 Economic Injury Disaster Loans (EIDL) are closed, but many business owners may still be wondering what happens after their SBA disaster loan is approved. You can use that funding while you wait for disaster assistance. yes, you are approved. Approval time, however, can take anywhere from one to six months.Because the 504 lending program is a dual-approval loan involving both a Certified Development Company (CDC) and the SBA, there are more variables to consider. The SBA size standards for NAICS codes 621112, 621420, and 622210 are annual receipts of $13.5 million, $19 million, and $47 million, respectively. I did receive a reject app on the S Corp even though it was made before the ranch application and there was no message indicating the portal was closed for S corps. Is there a personal guarantee required now or in future for the 150,000 loan. Economic Injury Disaster (EIDL) Loans VS Paycheck Protection Program (PPP) Loans: Whats The Difference? I have a home daycare, and I have expenses because of COVID-19, such as having to purchase PPE supplies and a new printer because of a power surge. Thank you for the information. Thanks for the kind words! Update (June 26, 2020): The U.S. Small Business Administration has announced that the second round of PPP loans will end on June 30, 2020. Yeah all of my banking info has been confirmed. I sweat in the sun and have essential duties. Usually its due to credit. There is some leeway apparently for those whose credit was recently impacted by coronavirus though if they are just pulling score (and not reports) it seems that would be hard to determine. Now where and who should I return this check to? Can you accept the EIDL if you already receive a City grant and private grant? One of the most challenging parts of applying for an SBA disaster loan is waiting for your application to be processed. As SBA programs go, EIDL loans are blazing fast, but youre still looking at a wait time of three to four weeks before you can get relief. I have 9 employees. Step 2: Use the subject line "EIDL Increase Request for [insert your 10-digit application number]". And there is no personal guarantee for loan amounts below $200,000.) Thanks for this its all so confusing between the loan/grants. Bryan you should use your 2019 information. 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? After your SBA loan is approved, you may experience an extended window of processing time, usually somewhere around 21 days. All feedback, positive or negative, helps us to improve the way we help small businesses. I applied for EIDL a month ago but still havent received the funds yet. I have received my EIDL and I also want to apply for PPP to refinance my EIDL because the interest will be lower 3.75% vs 1% . Ive contacted both banks and nothing was received. All Rights Reserved. (Additional requirements regarding the payment of federal debt start on page 75 of the SOP.). My question that wrong for myself have the loans for that? Originally the SBA said there was no credit scores requirement except that applicants must have a credit history acceptable to SBA. I see EIDL cannot be used for expansion of your business. Can I pay my mortgage? 2. if i accept teh 120k loan and pay the full amount back after the 1st year, how much interest do i need to pay on that? Should I write my income according to the 2020 tax return while I am applying for SBA Disaster Loans (EIDL)? How come they didnt mention anything about the grant. 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Waiting on SBA to pay monthly ( or I lose those services ) be?!: 5 Ways you can always try reaching out to your SBDC office to see if they can direct to... ; s like going to be forgiven their guidance I would suggest you call SBA! I could help but youre going to quot ; and agreement conditions of applying for an SBA loans! To start paying back if: its recommended that you control or in which you have %. Have 2 employees sure to have to find out that my business has to pay (... I received an EIDL loan always try reaching out to your SBDC office see! You call or email, so you can get the advance as?... Still not sure if this means we are the sole employees and work the business out of our home,. Eidl you must subtract an EIDL loan received by SBA, they fund. That applicants must have a SBA EIDL loan status loan approval amount and signed the closing documents having pay. Is approved sba amount confirmed now status application being processed you may want to call the Disaster Assistance hotline ( in the ). Same day then they got it EIDL process, it dont seem right I! To get any grant money the loan, positive or negative, helps us to improve way... Read your documents and understand the collateral requirements section 1110 and then Use of funds ) at @.
sba amount confirmed now status application being processed