Use the SBA local assistance locator to find help in your area. They can help you for free. Not sure why it was so little. Privacy Policy. The grant is typically deposited into your bank account with the notation EIDG (G for grant) and most business owners have received it before the loan approval. We were approved, have no employees. You may be audited so we recommend you keep good records. You have up to six months to request a reconsideration. I just signed my EIDL paperwork, but never received the grant. Questions Claudia this article discusses ways you can and cannot use EIDL. Thank you. Hi Gerri, I am self employed with 1099 form, I successfully applied and received $1000 grants last week, I am not sure the SBA free grant count as a grant or income? All one after another. If you learn something new please let us know. Because if I can do both of those thats $5k free money for the Payroll Tax Credit and $10k free money for the EIDL grant, and that would be $15k free money if I can do both. Call back. Do you need a business bank account in order for your eidl grant to be deposited because I have a personal checking account at this time? I applied immediantely after the portal opened up monday and then again Thursday night and this time I checked the box. In order to qualify for an EIDL loan, businesses must meet the following eligibility criteria: If you're in a low-income community, you might be eligible to receive up to $15,000 in additional funds from the SBA that don't need to be repaid through the Targeted EIDL Advance and Supplemental Targeted Advance programs. Note, we have gathered this information from a variety of SBA sources and strive to provide helpful guidance, but do not rely on this as definitive answers to your questions. I was hopeful things were moving when I received an experian notification on 4/11 but there has been zero movement since. But in the PPP application it asked about EIDL amount, refinance amount, if so do I just put $0? Could it be the reason because I put my person accounting and routing numbers instead of my business account information? It's like going to. As an owner, I am not a W2 employee, others are ICs, and one admin that is a W2 employee. I feel like I been tricked by this hole EIDL process, It dont seem right but I don t know? We have a vehicle loan Thats a fixed payment monthly..its registered to the business, I couldnt find anytime specifically about this..but im thinking its not allowed. Or should I just return the EIDL and survive on PPP alone? Failure to complete these steps will result in your application being withdrawn.. The EIDL program is a disaster relief fund administered through the U.S. Small Business Administration (SBA). Seems Like The SBA is Taking Advantage Of A Plague To Make Profit. So it would be good to know this. The terms do not apply to the advance . What does this mean. I received my approval but have not signed closing documents and would like to lower the amount to 25k, can I still do that? Will i get the amount approved for or a different amount? How can the grant be spent im seeing a lot about the loan but what about the grant ? Is that what you are asking? If you applied through the COVID-19 portal, the SBA will contact you, but you may be able to get answers by calling the toll-free number. Does anyone know why this happens. It is illogical to keep inactive numbers on banks' balance sheet. Will I still be eligible for the eidl loan without any income shown til date but substantial expenses due every month such as rent, mortgage, and utilities until the reopening occurs in my state? Sylvia Id suggest you apply and see what happens. Whenever theres money involved, you can be sure that theres a scammer out there looking to take it, and EIDL funding is no exception. See more information here. Is the EIDL loan assumable, to your knowledge? Meanwhile, some people whom I know took EIDL and paid off their car loans which loans ( lenders were not federal bodies). I have a business that we contract with many independent contractors. Call 1-800-659-2955 (the SBA Disaster Assistance customer service center) and ask for Tier 2. Call 1-800-659-2955 (the SBA Disaster Assistance customer service center) and ask for Tier 2. Will this loan reflect on my personal credit report But Id suggest you reach out to SBA. 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. What do I do now? 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 . I would recommend you contact the SBA Disaster Assistance hotline to find out what happened. There are a lot of business owners sharing their experiences with these programs there. Hello, My question wasnt answered. They have staff who are assigned to helping constituents having trouble with government loans. For example, if we are able to recoup all lost revenue within the year from the note issuance and decide to pay off the entire principal balance on our first payment due date will that be possible without any interest accrual? Borrowers that received COVID EIDL loans have some additional relief ahead, as the SBA recently extended loan deferments for an additional six months adding up to a total of 30 months of deferred payments from the date of the original note. You can think of these loan advances like a grant, but without the usual requirements that come with a federal government grant. You may also be able to hire a professional to help you, though the SBA emphasizes that you do not have to pay anyone to complete this application. And while vaccine distribution is currently underway, there is still a long road ahead until the US returns to any sense of normalcywhich means many small business owners are looking for additional financial support to weather the storm and keep their businesses moving forward. Next, PPP funds come through and are deposited, lets assume $10,000. yes, you are approved. Currently, the EIDL is accepting new applications and approving new loans. SBA CARES Act Insights Hub on Facebook if you want to check it out. We also provide some thoughts concerning compliance and risk mitigation in this challenging environment. 2 Coffeeman1901 3 yr. ago I'm at the same point, mine says application being processed. The SBA Economic Injury Disaster Loan program provides emergency loans to small businesses facing economic hardship and challenges as the result of a declared disasterlike the COVID-19 pandemic. 1. He then updated me on my loan request What should I do in this case? Cares Act SBA Loan calculator may be helpful there. They are the only ones who can cancel the loan. I was approved for both PPP and EIDL. I have the same question. I received a SBA eidl loan for under $20,000. Samantha, I can think of three possible scenarios. Said it could take 2-3 weeks for documents. Thank you so much. For example: If I was approved for 7,000 and it shows that I will be payoing back 12,000 at the end of 30 years. The SBA plans to continue accepting new EIDL applications through December 2021 (pending the availability of funds).. I accepted it, and verified the ID and Acct info I just can't sign the docs, still grayed out. If you have good credit, a start up 7(a) SBA loan might be a possibility as well. Im sorry its so difficult for you Michael. once that's received by SBA, they will fund you in 2-3 days afterwards. What about utilities? Even though its a loan, its my understanding that it can be forgiven. Or can I add my other bank account? Kara Two different businesses can get two EIDL loans but I am not sure if the SBA will consider two businesses operating under the same EIN to be different businesses. You can accept less than the amount for which you are approved so if sounds like they are confirming the amount you want to accept. I did not realize at the time that the over amount was incorrect. 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. There is a character requirement for EIDL that reviews criminal history. Thank you for your prompt reply. How To Get A Small Business Loan: The Step-By-Step Guide, 12 Popular Types Of Loans & Funding Options For Small Businesses. It may if you use it to pay yourself during the time you receive unemployment. If your bank account number or any other information on your application is incorrect, contact the SBA Disaster Assistance customer service center at 1-800-659-2955. Tax returns are required for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than 50 percent ownership in the affiliate business. I applied in March and received the EIDL just a week ago in June. It looks like EIDL grants are tax free. This is a federal program and it is important to follow the guidelines. On 04/27/20 I was alerted by email that a lender pulled a hard credit report on me on that day (04/27/20) Upon checking my cr I seen that it was SBA that requsted my report at wich point I felt relieved because im watching my dreams an my business slowly die an not knowing what or if the SBA is doing anything because Im not getting no correspondence after applying for the loan from the SBA is an emotional infliction of pain that many in this country share an understand with me an is something I hope can be corrected. Note that we are not able to provide private consultations, give advice, or answer questions. Start earning rewards with your corporate spending today. What happens if you defaulted on a SBA loan over 20 years ago with a different business. Fingers crossed for you! I was sent an email of my loan approval for 11,500 for the EIDL and asked to sign to sign the closing documents. What counts as business expansion and what counts as capital and does it only cover items youre already paying for? As of right now, you cant actually apply for Targeted EIDL grants at all. 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. If Im applying for a mortgage, can this affect my chances on getting that mortgage? I was planning on buying a used business vehicle this year but since sales are down I cant afford to pay cash for one but desperately need to replace the old vehicle soon. One of the most challenging parts of applying for an SBA disaster loan is waiting for your application to be processed. We received our PPP fund first and have been using them for payroll and utilities. What counts as economic injury? For example: If you are a sole proprietor with multiple businesses: Check Your Business Credit To See What SBA Loans You Qualify For, When you sign up for a free Nav account. Theres no word yet on whether the program will be opened further after the high-priority groups are served. There are alternative routes you can take to get the financial assistance you need to keep your business moving forward, including: If your EIDL loan is denied, you have up to six months to request reconsideration, either via email (by sending an email to pdcrecons@sba.gov) or mail (by sending a request to U.S. Small Business Administration Disaster Assistance Processing and Disbursement Center, 14925 Kingsport Road Fort Worth, Texas 76155).. This is what mine says as well. Denis I doubt it. Youll need to reach out directly to the SBA though. Its worth a try. If you uave a business with an EIN but also have an additional dba under the same EIN can you get two loans? I cant speak for the SBA but if you are the only employee then my guess is you received the advance/grant. Please advice. No. But we dont have a detailed list on all the expenses you mention so you should check with the SBA. It is so frustrated. The Paycheck Protection Program is no longer accepting new applications. We received the PPP and already funded..well be using the entire loan for payroll. 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? Right now the portal is closed so you cant reapply. Why didnt they catch it before they gave me the extra money. Any thoughts? When the EDIL reopened for regular small business, I applied again. So an EXPLANATION for each blank to be filled in ESPECIALLY for those with REQD RED ASTERICKS would be VERY HELPFUL. You should have seen a confirmation number when you filled out the application but I dont believe confirmation emails are going out. I received the grant and I got an email to create SBA account, which states I was qualified for a loan up to 40,000. Generally, C&D waste is defined as the solid waste which generates from construction, renovation and demolition activities. I would contact the SBA asap to make sure the funds didnt go to the wrong account. I want to know if I can use the EIDL loan for payroll when the PPP loan is paid out in 8 weeks? 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. On your first question, I havent seen specific guidance but Id imagine it depends on how you spend it. I got worried that it could be an issue, and I called the SBA they talk me that if they approved it its fine. Check out our guide on what you need to know about SBA loans for more information. Since October 2019 my credit score has gone down in the drain. Will this SBA loan affect my personal credit score? I can say with certainty that you should not use the funds for personal home improvements. Certainly, though, lending to businesses that don't meet traditional bank loan criteria means you may take on more risk of default. I actually have a short term loan with a certain company, it should be payable in 12 months. I'm at the same point, mine says application being processed. What is the penalty on the money if it is used for other things? Can this loan be used to pay off credit card debt? For those small businesses wanting to do a loan modification increase request up to the current $2 million maximum, or companies that have received a decline letter in the past six months or less,. What do i need to do? Please call our Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing) or email . My accountant really doesnt help much and recommended I check SBA site, which I did and is more confusing even! How long did your total process take? I wish I could be more specific but I hope this will be helpful. You may want to join to learn from their experiences. A UCC-1 filing will be placed for loans above $25,000. I am in the process of purchasing a new van for my small business. I applied for the SBA EIDL loan. Thanks and I look forward to hearing from you. I was approved for a EIDL loan of $103000. However you must list a US address on your application. This is in the EIDL and the PPP. Usually its due to credit. The CARES Act states you can use a PPP to refinance an EIDL made beginning on January 31, 2020 and ending on the date on which covered loans are made available. The rating of this company or service is based on the authors expert opinion and analysis of the product, and assessed and seconded by another subject matter expert on staff before publication. No. 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. How can I return my EIDL Advance (Grant). An electronic disaster loan application (, The companys most recent 3 years of business tax returns. To apply, you. My question is once you at the where do my funds go portion of the Eidl application if I dont have a bank account anymore how will I receive funds or becabke to process this application if I havevred astricks keeping me from moving to the next portion of the application? I finally speak to rep. To correct how long will I get responses. can i use the EIDL to pay car insurance (90% business use in 2019), tax payment for 2019 and estimated tax payments for 2020? I didn't take the full amount offered, just a portion of it. For more information, please see our Can I re apply The SBA is not mailing checks. I thought the idea is to help companies and sole proprietors pay their employees which is due to loss of income from the virus and its effects on the economy. . There have been 69,567 PPP applications approved in Pennsylvania, according to SBA's website. You can pay off the loan early without a penalty. it has now been 18 days since the credit pull and the $10,000 going in those accounts and NO WORD EITHER WAY??? If you have questions about your individual situation or application, we recommend you call SBA Disaster Assistance at 1-800-659-2955. 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