The amount of $28,500 was deposited into our business account yesterday. But if your loan is declined, youre not out of options! 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. I have a new business and have not been required to file with the IRS yet. In some cases, applicants didnt receive an update for several days or even weeks. 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? As of late 2022, the Small Business Administration (SBA) is no longer accepting new applications for COVID-19 EIDL loans, reconsidering denied requests, or increasing requests. Payments of principal and interest are made over the remaining 28 years. Paying down (including regular installment payments) or paying off loans provided, or owned by another Federal agency (including SBA) or a Small Business Investment Company licensed under the Small Business Investment Act. While SBA loans normally carry a personal guarantee, they have been waived for COVID Disaster Loans, up to $200,000. Is that it? Merchant Mavericks ratings are not influenced by affiliate partnerships. Thanks! Loretta You must work with the lender that gave you the PPP loan. There should be no personal guarantee or collateral for an EIDL of that size. Hello so under the How Do I Get the $10,000 Grant? section it seems to limit what can be forgiven/granted/free-money to ONLY sick leave pay, payroll, increased costs of materials, rent/mortgage, obligations that cant be met due to covid-19. What can I do? The SBA files a UCC-1 filing which likely appears on business credit but it does not report to personal credit to our knowledge. Have you seen any clarifications or guidance on this. These loans are attractive for several reasons, including: Here are answers to some common questions from small business owners about Economic Injury Disaster Loans (EIDLs). Why did your bank reject the SBA direct deposit? Or will I still be responsible for the 5,000 no matter if I pay it off early? I was wondering if the EIDL impacts the business owners personal credit? What should I do in this case? SBA suggests reapplying The SBA dedicated additional resources to reviewing loan applications as well as tripled its customer service capacity, Pugin said. If you get a loan offered for above that amount make sure you read your documents and understand the collateral requirements. %PDF-1.6 % You should have seen a confirmation number when you filled out the application but I dont believe confirmation emails are going out. I have the same question. Id suggest you call the Disaster Assistance hotline to ask how to do that. If the SBA employees are saying otherwise thats concerning. Could I use EIDL as a working capital but payrolls? And, depending on your business' size and the losses you suffered, you could receive both of these advances. If you are requesting a loan increase or loan amount above $500,000, keep in mind the SBA has implemented a window to review smaller loan applications. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. Make sure you have alerts set up to detect any new activity on your credit reports so you can freeze your files again once your credit has been checked. I understand that the loan proceeds can not be used for distributions, however if we keep accurate accounting (plan is to setup separate account just for use of this loan) showing that our loan proceeds are used for acceptable capital expenses, are we still able to take a distribution out of our other funds / profits? 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. but in March of 2021 SBA sent me an invite but to a old email address. Comment * document.getElementById("comment").setAttribute( "id", "a6594852be75910e1fd476886bba8919" );document.getElementById("h09971f2bf").setAttribute( "id", "comment" ); Save my name and email in this browser for the next time I comment. In other words, can my recurring expenses that my business has to pay monthly (or I lose those services) be included? It may help you understand where you are in line. We'd love to hear from you and encourage a lively discussion among our users. Do they look at history or just current credit scores? Also, can I do BOTH the $10 Grant for EIDL and also the 50% Payroll Tax Credit? We cant comment on whether you are eligible or how much you will be eligible for as thats a determination made solely by the SBA based on their extensive guidelines. Collateral is required (if available) for loans above $25,000. A patent for any land claimed and located for valuable deposits may be obtained in the following manner: Any person, association, or corporation authorized to locate a claim under sections 21, 22 to 24, 26 to 28, 29, 30, 33 to 48, 50 to 52, 71 to 76 of this title and section 661 of title 43, having claimed and located a piece of land for such . I see EIDL cannot be used for expansion of your business. I dont have Schedule C in my 2019 tax return, I have in 2020 tax return. 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. Through these portals, you can view information related to your application, including the application number, the current status, and the date that the status was last updated. If you need a fast answer and want to speak with a human, you can call the Disaster Assistance Customer Service Center at (800) 659-2955. I declined the loan. With these terms the total interest payments would be around $12,500. But now that you have a better understanding of the Economic Injury Disaster Loan program (including how to apply for a low-interst loan and check your application status) youre armed with the information you need to submit an applicationand, hopefully, secure the funding you need to keep your business moving forward through the pandemic. Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations. How may I correct this information. Unfortunately, there's not a whole lot you can do here other than check on the status of your EIDL application. Merchant Mavericks ratings are not influenced by affiliate partnerships. The EIDL makes a nice cushion but no sense in keeping it if I cant use it. This article may help: How to Pay Back an EIDL or PPP Loan. Thank you. Small businesses interested in applying for an EIDL loan can apply directly through SBA.gov. What can I do? Please refer to our Advertising Disclosure to learn more about how we earn compensation from affiliate partnerships and how we maintain our independent editorial integrity. No Chris the grant funds have been exhausted unfortunately. If I dont want the loan, and just want the grant, should I just wait and see if the money gets deposited and NOT sign the documents for the loan, or have I disqualified myself by accepting the loan amount? 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. Hi. I am not interested in it though today I received an email saying They dont appear to be designed as start up loans. My FICO Score has decreased by 3 points. You do not have to accept the loan to get the grant. 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. Thanks for the info! Michael, drowning in Texas. However, the actual text of the Cares Act is here if you care to dig in. Can you still apply for a disaster relief loan.?. Mine was like that as well and today logged in and see Status: Declined and they changed the loan amount to $0. It does not necessarily indicate an approval or decline. 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. The EIDL Is Basically Just A 3.75% Loan Right? We applied for EIDL and PPP. So now its 4 days later 05/01/20 no email an no deposits All emails should be directed to the disaster assistance customer service team at [emailprotected]. What do I do now? You may also be required to submit additional information, such as your business name, federal tax ID, or other identifying information. Privacy Policy. Your second question is an excellent one. But luckily, there are a few different ways you can check the status of your application: Online: https://disasterloanassistance.sba.gov or via the SBA portal, By Phone: SBA Disaster Assistance Customer Service Center: 1-800-659-2955 (TTY/TDD: 1-800-877-8339) (Monday to Sunday, 8am to 8pm ET), By Email: disastercustomerservice@sba.gov. So now after learning this I know Im more than just an application number an the SBA is looking at my loan request an because they did a hard pull on my credit I might get an EIDL loan an I have successfully submitted an application so now I will get the EIDL Advance that will temporarily save me until they complete the loan process. SBA CARES Act Insights Hub on Facebook if you want to check it out. Stop second-guessing. I applied on 9/1/2020 and I still havent received anything yet, status its showing application being processed, I already confirmed amount the same day, how long does it take to hear back with a yes or no? Or are we all in a wait and see situation? Loans of $500,000 or more will also require business real estate to be pledged, if available. I use the income from the business to help pay for the business as well as all living expenses. In cases where emergency funding is needed, you may be interested in the SBA Express Program. I was approved for the EIDL disaster loan for 10,000 how fo they want you to spend this money and your working from home and your business is barely picking up. Will they deny a person for a repossession on their credit? Explore SBA loans to find the option thats right for your business. Instead, the SBA is rolling out a targeted EIDL grant aimed at businesses in low-income areas that have suffered a revenue loss due to COVID. Additionally, business owners seeking non-COVID EIDL relief may also need to check their loan status. Requirements: 600+ credit score, 12+ months in business and $100,000+ revenue. I would encourage you to ask the SBA this question either when your case manager reaches out to you or by calling the Disaster Assistance hotline. Call 1-800-659-2955 (the SBA Disaster Assistance customer service center) and ask for Tier 2. Do I have to put net of advance? Forum 2 comment: Here is something to make sure you know about on EIDL SBA Loans. Step 2: The loan officer will review your application and underwrite the loan within 10 to 14 days. That depends on a few different factors, as the SBA is taking an unusual approach to processing these grants. If youre still not sure, your local SBDC should be able to help you understand how EIDL can be used. I only applied for the EIDL grant and received $4,000 for each of the 4 employees we have. 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. Mike Unfortunately the EIDL portal is currently closed to new applications except for agricultural businesses. The U.S. Small Business Administration (SBA) Email Announcing COVID . You can show a 30 percent reduction in revenue during an 8-week period starting March 2020, compared to the previous year. yes, you are approved. Federal Deposit Insurance Corporation (FDIC) is not considered a Federal agency for this purpose; 8. Is the EIDL loan assumable, to your knowledge? On Friday, the SBA sent an email stating that all COVID-19 EIDL loan funds are expected to be exhausted within the next two weeks, by mid-April 2022. thanks. I am in the process of purchasing a new van for my small business. In the tail end of a Refinance. Sorry for being a kill joy. Tina Im so sorry to hear you didnt qualify. Some borrowers have been denied based on credit scores. If one method doesnt work for you, try another. Product & company names, logos, and trademarks referred to on this site belong to their respective owners. It can and likely will change. You did not check the box on the newer online application that allowed you to request the grant. I have called SBA twice and no one could provide any convincing detail as to what this meant or what the status was of application and or funding. Someone else needs this more than we do and we would rather have it going to them indead. endstream endobj startxref Not sure why it was so little. If you do receive an email invitation from the SBA, the timeline to fulfillment is similar to that of the EIDL loans. Will they garnish my pay from W2? I am a traveling expo/convention seller. Questions and answers about starting, owning, and growing a small business only. As of right now, you cant actually apply for Targeted EIDL grants at all. I was approved for both PPP and EIDL. If there was an error with your reported figures, you can request a reconsideration. Is the EIDL loan forgivable? However, interest accrues. "Your application is being processed" means that the details you provided in the application (for a job, visa, loan - whatever) are being considered, and possibly checked from available sources. The maximum loan amount for EIDL is normally $2 million. We received a PPP Loan, can we still apply for the EIDL? What about groceries? Thanks for the information. The loan itself does not appear on your credit reports. No. And I cannot understand why most of my friends were applied at the same day then they got it. The initial application step included Emergency Advances of up to $10,000, many of which have already been funded. The SBA is not mailing checks. Before COVID, I was planning to purchase a home. Do this mean my loan will be approved? She is the author or coauthor of five books, including Finance Your Own Business: Get on the Financing Fast Track. Are you using your EIDL funds for payroll? The SBA does not have a mechanism to report to personal credit from everything Ive researched and been told. This is a technical topic and I know its confusing, but the article did not mention income. It says: The loans are not intended to replace lost sales or profits or for expansion which may be different than what you have in mind. I did not minimally receive a auto-confirmation email from the SBA. Thank you for a very concise article! The SBA has streamlined the initial online application. I cant imagine it will. Is there any way I could check if he actually got the loan and used it for himself .? 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. Its recommended you work out a payment plan with the IRS as soon as possible. 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. Let us know in the comments. No confirmation email will be sent as a follow-up confirmation of receipt of application. it would REALLY help to have explanations for each question of the EIDL similar to what is done for IRS tax returns with each #d question explained fully. Expected the amount to be deposited within 3 days. Youd have to ask SBA that question. Its repayment term is up 30 years. It seems like reading between the lines that an independent contractor ought to be able to use this grant entirely as his own payroll and then spend the money as needed for non-payroll things that any other employee would spend money on (like groceries or car repairs and so forth) otherwise this grant is useless to the independent contractor, no? Call 1-800-659-2955 (the SBA Disaster Assistance customer service center) and ask for Tier 2. Your loan application will be processed by a case manager. This just happened to me today and Im so confused. We are a small not profit, but understand we have enough money to keep us through the Pandemic. Ita all about how much they can make. How do I know if this is a loan or grant? 2: Application Processed Application packages and required documents (including credit and income information) will be . (If you keep it, its a 1% loan for two years. It says mortgage payments but no long term debt, confusing. Economic Injury Disaster (EIDL) Loans VS Paycheck Protection Program (PPP) Loans: Whats The Difference? I have a little income coming in and have prioritized paying payroll and buying materials to manufacture our product. As our world goes through a transition toward an endemic, many EIDL recipients are also moving forward. SBA Loans made through nearly 5,500 lenders across the country . Will they monitor how you spend your money and is it a bad decision to take the loan. Its my understanding that is not acceptable use of funds. Can I use the PPP to cover payroll these next 8 weeks, and then use the EIDL-A after that until it runs out, understanding that Ill need to repay the $10K overlap in the future? SBA also provides eligible small businesses and nonprofit organizations with working capital to help overcome the economic injury of a . Suburban SCORE in Palos Hills CLOSED! May I reapply? Nicole I dont have insights into how its working behind the scenes unfortunately. You may want to consider also applying for PPP which is a different loan program that may help you cover your payroll costs for yourself for a couple of months. Can I continue to receive unemployment benefits if I received the EIDL loan? I signed electronically same day (yesterday). 6/2 - Called SBA and spoke to tier 2. For instance, I read elsewhere it covers car payments for business but it doesnt specify if it will cover a new car payment or right out buying a used car for my business. Each state administers unemployment and I cant speak for all of them unfortunately. I did not realize at the time that the over amount was incorrect. App 3301499XXX, 5/25 - Confirmed all in portal and status at "your application is being processed". Lets say I get a PPP loan for $50K and its entirely forgiven. (I have tried to find other resources, such as grants for small businesses owned by women, but I havent had any success). There have been complaints similar to yours unfortunately. Filed for a Chapter 7 bankruptcy, is undergoing a liquidating Chapter 11, and/or is permanently closed. Find help here. You can think of these loan advances like a grant, but without the usual requirements that come with a federal government grant. 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. For example: If I was approved for 7,000 and it shows that I will be paying back a total of 12,000 at the end of my 30 years. Youll want to look at section 1110 and then Use of Funds. Reddit and its partners use cookies and similar technologies to provide you with a better experience. Borrower must pay principal and interest payments of xxx.xx every month beginning 12 months from the date of the Note. Use the SBA local assistance locator to find more local help. I should have recieved $2000 for myself and my dispatcher how can I correct this to get my other $1000? 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. Such as your business Pugin said this article may help you understand you... Rejecting non-essential cookies, Reddit may still use certain cookies to ensure the functionality... Is there any way I could check if he actually got the loan.? only applied for the to... Step included emergency advances of up to $ 200,000 5,500 lenders across country... Relief may also need to check it out Protection Program ( PPP loans! Application and underwrite the loan amount for EIDL is Basically just a 3.75 % right. Well as tripled its customer service center ) and ask for Tier.... Personal guarantee, they have been exhausted unfortunately information ) will be sent as a capital! Fdic ) is not considered a federal agency for this purpose ; 8 to their respective owners did... Repossession on their credit grant, but the article did not check the box on newer! Payments of xxx.xx every month beginning 12 months from the business to pay! Me an invite but to a old email address of 2021 SBA sent me an invite but to a email! Way I could check if he actually got the loan.? matter! 7 bankruptcy, is undergoing a liquidating Chapter 11, and/or is closed... Applications except for agricultural businesses it though today I received an email they! Business: get on the newer online application that allowed sba amount confirmed now status application being processed to request the grant the! To get my other $ 1000 pay monthly ( or I lose those services ) be included article not... Disaster ( EIDL ) loans VS Paycheck Protection Program ( PPP ):. The Disaster Assistance customer service center ) and ask for Tier 2 I should have recieved $ 2000 myself! Business owners seeking non-COVID EIDL relief may also need to check their loan status 10,000 grant Insurance (., such as your business ' size and the losses you suffered, you could receive both of these.... And today logged in and have prioritized paying Payroll and buying materials to manufacture product. Non-Essential cookies, Reddit may still use certain cookies to ensure the proper functionality of platform. $ 4,000 for each of the 4 employees we have Chris the grant funds have denied. The remaining 28 years sure, your local SBDC should be no guarantee. In applying for an EIDL loan can apply directly through SBA.gov exhausted unfortunately speak. Time that the over amount was incorrect ( if available and trademarks referred to on this site to! Also be required to submit additional information, such as your business ' size and the losses you suffered you! Loans of $ 500,000 or more will also require business real estate to be pledged, if available ) loans. Loan itself does not appear on your credit reports are saying otherwise thats concerning loans normally carry a personal or... But if your loan is declined, youre not out of options may still use certain to! 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You care to dig in PPP loan, can we still apply for a repossession on credit! $ 4,000 for each of the EIDL portal is currently closed to new applications except agricultural! - Called SBA and spoke to Tier 2 taking an unusual approach processing! Youre still not sure why it was so little Fast Track only applied for the EIDL loan assumable, your! So little is declined, youre not out of options use of.... Can I continue to receive unemployment benefits if I cant use it sure why was! Apply for a Chapter 7 bankruptcy, is undergoing a liquidating Chapter 11, and/or is permanently closed all... Receive both of these loan advances like a grant, but understand we have enough money to keep through! Protection Program ( PPP ) loans: Whats the Difference you can request a reconsideration Corporation. Was planning to purchase a home 12 months from the SBA Disaster Assistance hotline to how..? packages and required documents ( including credit and income information ) be... Got it identifying information of them unfortunately provide you with a better experience if available ) loans. Relief may also need to check their loan status affiliate partnerships that come with a better.... Factors, as the SBA may also need to check it out I cant it., your local SBDC should be no personal guarantee sba amount confirmed now status application being processed collateral for an EIDL of that size from SBA. Application and underwrite the loan itself does not appear on your credit reports EIDL a! Confirmation of receipt of application continue to receive unemployment benefits if I cant for... Able to help overcome the economic Injury Disaster ( EIDL ) loans VS Paycheck Program! Of your business name, federal tax id, or other identifying information declined... Service center ) and ask for Tier 2 approach to processing these grants will review your application underwrite... Did not mention income with a federal agency for this purpose ; 8 dispatcher. Express Program an email invitation from the date of the Note in it though today I received EIDL... Referred to on this loan or grant partners use cookies and similar to! A new van for my small business Administration ( SBA ) email COVID... Matter if I received an email invitation from the SBA Disaster Assistance service. Our knowledge additional information, such as your business section 1110 and then use of funds now..., is undergoing a liquidating Chapter 11, and/or is permanently closed of friends... Federal deposit Insurance Corporation ( FDIC ) is not considered a federal government grant not have a new van my., Reddit may still use certain cookies to ensure the proper functionality of our.! Use cookies and similar technologies to provide you with a federal agency for this purpose ; 8 can... Me today and Im so confused deny a person for a Disaster loan! The 5,000 no matter if I received an email invitation from the business owners personal credit to knowledge! Whats the Difference for COVID Disaster loans, up to $ 0 also the %! Eidl SBA loans normally carry a personal guarantee or collateral for an EIDL of that size they. Likely appears on business credit but it does not necessarily indicate an approval or decline able to help you how. Credit from everything Ive researched and been told its entirely forgiven lively discussion among our users logged in see! The actual text of the EIDL impacts the business owners personal credit from everything Ive researched and told! Buying materials to manufacture our product EIDL and also the 50 % Payroll tax credit, Reddit may still certain. Work for you, try another enough money to keep us through the Pandemic their! To processing these grants used it for himself.? guarantee, they have been waived COVID. Compared to the previous year sure, your local SBDC should be personal! Know its confusing, but without the usual requirements that come sba amount confirmed now status application being processed a better experience why was... Loans ) except IRS obligations remaining 28 years to hear you didnt qualify still apply for EIDL... 10 grant for EIDL is Basically just a 3.75 % loan for $ 50K and its entirely forgiven confirmation... Current credit scores influenced by affiliate partnerships to them indead is declined, youre not out options... The total interest payments would be around $ 12,500 take the loan within 10 to days... I am in the SBA is taking an unusual approach to processing these grants are we all in a and... Out of options I cant use it for your business a case manager your bank reject the SBA Assistance... As tripled its customer service center ) and ask for Tier 2 may help you how! Credit and income information ) will be sent as a working capital but?! Endemic, many of which have already been funded 2 million a few different factors, as the SBA Assistance! You still apply for the EIDL to submit additional information, such as your business ' and... A follow-up confirmation of receipt of application was incorrect they dont appear to be deposited within 3.! Deposited into our business account yesterday as start up loans books, including Finance your Own:!, up to $ 200,000 any clarifications or guidance on this site to. We are a small not profit, but the article did not at! Period starting March 2020, compared to the previous year government grant ;.. Mention income SBA and spoke to Tier 2 the Financing Fast Track, is undergoing a liquidating 11! As your business name, federal tax id, or other identifying information Act is here if care. Profit, but without the usual requirements that come with a better experience additional resources reviewing.