And received my closing documents today May 16 What about groceries? 1. Why are they putting us through this? 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??? We recommend you open a business checking account and use it for your business going forward. Hope its helpful! You may want to meet with your accountant, an SBDC advisor or SCORE mentor to get some advice before you decide how to proceed. Youll need to contact the SBA Disaster Assistance hotline for information. Hi I reserved 9500 eidl loan application status approved The SBA is offering a Hardship Accommodation Plan for borrowers experiencing short-term financial challenges. I would contact the SBA asap to make sure the funds didnt go to the wrong account. 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. I have a business that we contract with many independent contractors. Janell Weve been told you can apply separately for multiple businesses. Remember, many small business owners are seeking financial relief. Subsequently, the SBA has posted the following guidance: The SBA obtains personal credit scores from Experian. Documentation or something, or is that just done and gone (other than reducing it from PPP forgiveness)? Gerri, (You may still qualify but you must provide a satisfactory explanation and be able to repay the tax debt. All Rights Reserved. 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? Also, pease what can I do to make them quickly respond to me & pay me? You may find that helpful. All emails should be directed to the disaster assistance customer service team at [emailprotected]. I understand there is no personal gurantee but what is considered collateral ? Use this method if you have additional questions about the program or submitted your application by mail. I suggest you also read: New EIDL $10,000 Grants: Do You Qualify? Also, I will be applying for reconsideration; what information can I provide to successfully be reconsidered and approved for the EIDL?? They sent me $1,000 grant about 5 days in but nothing since. The SBA files a UCC-1 filing which likely appears on business credit but it does not report to personal credit to our knowledge. I received a grant of $1,000 since I am a sole proprietorship. Due to pandemic, my current line of business is not making any money; I am planning to shut it down and start a new line of business. Press J to jump to the feed. The citizenship requirements for Disaster loans are on page 171 of the Standard Operating Procedures for Disaster loans. I read your other article which was informative but at the time didnt provide definite answers on what is and isnt proper usage of funds. EIDL is under the Disaster Loan program and PPP is under the 7(a) program. I am about to sign a 30 year $20,000 DBA disaster loan but have questions before I do. (Be sure to check with your tax professional regarding taxes at the state level. But there will be an inquiry. This article may help. 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. Im at a loss for words, thoughts or feelings at this time. Well the EIDLs are gone What to do now since the EIDL is gone?!?!?! 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? How do we know what they are securing for collateral? Oops! So now its 4 days later 05/01/20 no email an no deposits want to make sure that doesnt happen! For businesses that apply for loans below $500,000, your application will be processed ASAP, which is part of the SBA's efforts to ensure small businesses have access to these funds. If you use the grant to pay yourself then my understanding is youd have to report that income to unemployment. Great article. You may want to join to learn from their experiences. All one after another. I have major confusion as to what to do next. Is the EIDL loan forgivable? I would suggest you call the Disaster Assistance hotline (in the article) and ask their guidance. (Though I heard recently from a source I consider reliable that they SBA isnt taking home equity as collateral for these loans.) @e!TDo:Ut,5f@Z^e`Xn0=.3\]d4#k g}A@\D-c@ M; And when you support small business owners, you grow as well-expanding your institutional opportunity, revenue and clientele. You can contact the SBA by calling 1-800-659-2955 or by email at disastercustomerservice@sba.gov. Id suggest calling them and asking how to request more funds rather than waiting for a new application to be processed (and potentially getting rejected). Hi Stacy the SBAs FAQs state: What do I do if my loan application was approved, but Im experiencing a The rejection letter does not say if I need to reapply later? Very helpful. 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. Reddit and its partners use cookies and similar technologies to provide you with a better experience. I made a mistake when I filled the application for SBAD by covid19. Mellisa We havent seen guidance on that. Please read this article: 5 Ways You Can and Cant Use Your EIDL Loan. Is the monthly number set in stone ? The new policy changed the EIDL limit from 6 months of working capital and a $150,000 cap to 24 months of working capital and a $500,000 cap. 5 Ways You Can and Cant Use Your EIDL Loan. 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? Requirements: Credit score 600+, $250,000 per year revenue, 6 months in business, Find Loan Options For Your Small Business. Look at Question #4. The SBA has streamlined the initial online application. It has been 7 weeks since that day but I dont see anything FUND. Are you using your EIDL funds for payroll? I applied and received funding for a EIDL loan but just needed clarification on how the funds can be spent. gH7i\i\ According to the SBA, the way you apply is determined by how you file your federal taxes. It is essential equipment for deliveries and transporting our inventory. You may also need to verify additional information, such as the name of your business, federal tax ID, and/or your legal name. National Funding offers affordable small businesses funding with reasonable rates, zero collateral, and fast deposit upon approval. What is the penalty on the money if it is used for other things? Although the Small Business Administration (SBA) Economic Injury Disaster Loan and Emergency Advance to provide COVID relief is no longer accepting applications, applicants that didnt receive their funds may still need to check their EIDL loan status. Although we havent seen any guidance from the IRS on it, Ive been told by the Florida SBDC that Congress has made it clear that the forgiven amounts for both EIDL emergency advance and PPP are not a taxable event.. C'mon! I am a sole proprietorship with no EIN and just got $127000 in SBA loan and like to know if this Ioan will effect my credit score and also will it put lean on my personal property? once that's received by SBA, they will fund you in 2-3 days afterwards. Conventions and large gatherings are all closed with no hope in sight. Six months of working capital. There should be no personal guarantee or collateral for an EIDL of that size. How can I return my EIDL Advance (Grant). ), Hi Gerri Economic Injury Disaster (EIDL) Loans VS Paycheck Protection Program (PPP) Loans: Whats The Difference? The first place to start is through the SBA website, which offers resources including the SBA Assistant. 2 Coffeeman1901 3 yr. ago I'm at the same point, mine says application being processed. Hi Those numbers likely will rise as the application deadline for EIDL loans is not until December. I asked for the transaction id so the bank can track it and there was complete silence and no response to the email requesting this information. Obviously that did not happen. Why would EIDL loans be different than PPP? DisasterCustomerService@sba.gov to check the status of your application. Thanks. I wish I could be more specific but I hope this will be helpful. I know that the loan is available through Sept. 30th, but is the grant still available or no? As of May 6, 2022, SBA is no longer processing COVID-19 EIDL loan increase requests or requests for reconsideration of previously declined loan applications. 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. Thanks for the update and I definitely will keep you posted! I work from homerecently purchased a new vehicle I use for businessI use my income for personal uses. Not necessarily. My tracking no starts with a 3, so if that is my only Id number referred in these comments it would seem I have to go through the whole process again. Am I expected to to sit and monitor the sba portal and pray to God that my timing is perfect? Resource partners such as SBDCs, SCORE and Women's Business Centers can help as well. The SBA is not mailing checks. This is a federal program and it is important to follow the guidelines. Thanx! 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. I received a SBA eidl loan for under $20,000. To review your real-time funding options with one of Navs lending experts, please contact us. How can the grant be spent im seeing a lot about the loan but what about the grant ? It's like going to. It said monthly payments of $550 for 30 years which ends up being 198k. By Phone. You can use it to pay yourself for services in your business. And then what will happen with the grant? Is it possible if I can still use the money for another business if the business I originally applied for went bankrupt and is closing? Tina Im so sorry to hear you didnt qualify. Additionally, business owners seeking non-COVID EIDL relief may also need to check their loan status. If you receive the EIDL $10,000 Grant, and use it for non-payroll purposes, such as accounts payable, and then also receive a PPP loan which would be used entirely for payroll, would the $10,000 grant still be subtracted from the PPP forgiveness amount? But you are allowed to ask for reconsideration if you are turned down. Thank you! 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. If you file Schedule C, though, you are supposed to use the net profit from Line 31 of your schedule C. I put in my apps for 3 of my small businesses on March 31st. I do not have any income yet, as I was not able to open due to the pandemic. Copyright 2023 Merchant Maverick. Also, is there a better breakdown of what fixed debts could be? Just dont submit it. Your email address will not be published. I was approved for a EIDL loan of $103000. How do I give this money back now without having to pay any interest? You can also visit the SBA portal to see whether you have been extended an invitation to apply for a larger loan. The SBA promises a turnaround time of 36 hours for their express loans. You can use this method if you submitted your application online or by mail. The loan amount is calculated by the SBA based on economic injury. Whenever theres money involved, you can be sure that theres a scammer out there looking to take it, and EIDL funding is no exception. Thanks. I need to plan about employees, healthcare and more on if I can afford to continue paying for these things, if I dont get the other loans I have to reconsider how to move forward. Then finally was FORTUNATE someone answered at Womens Business Center in Chicago! Ramp offers a free corporate card for virtually any business. Not sure what to expect. They must be paid back. Your loan application will be processed by a case manager. It may if you use it to pay yourself during the time you receive unemployment. If you get a loan offered for above that amount make sure you read your documents and understand the collateral requirements. 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 have zero employees. What do I need to do? From reconsideration requests and appeals as small as $100,000, to loan modification increases between $500,000 to $2,000,000. We received both PPP and an EIDL-A. Hello Does "approved" mean the SBA has issued a SBA loan number? Please advice. I want to stay at $25k or under to avoid alot of the hassle of the terms of getting over the $25k amount. You will need to check with the SBA to get an answer to this question. The call center is currently open Monday-Sunday, 8a.m. . Also there are multiple people listed on my LLC, would it show up on all of our credit reports? 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. Id love to give you a specific timeframe but unfortunately some borrowers wait longer than others. We have started to pay back the loan early, will the disaster loan effect my credit? Up to $10 million . Jay The SOP (page 75) states under ineligible uses of proceeds: Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations. Can you accept the EIDL if you already receive a City grant and private grant? He has been cited in various industry publications, including, View Chris Motola's professional experience. You may also want to read our article about the new emergency EIDL grants to see if you qualify. You should provide an updated income statement (also known as a profit/loss statement) providing evidence of the correct figures. I verified all my info and bank info and now its states loan application in processing. Can funds be used for a newer/upgrade vehicle? There are bills being presented that could provide additional funding for EIDL Loans. 'Mmtak< e"o"B.+(f&oc_OWCsv,FY;R#m}YMCd u]?vo}XGfxNY.1Z$nZr=:sU4H# We received the PPP and already funded..well be using the entire loan for payroll. I received my loan for $7K earlier this weekI have not received the grant for $1KI was told by SBA that the grant would be forthcomingDo you think that grant timing information is accurate? These loans. EIDL relief may also want to read our article about the or... Will be helpful expected to to sit and monitor the SBA to get an answer to this.! I provide to successfully be reconsidered and approved for a larger loan Centers can help as well: the. 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Way you apply is determined by how you file your federal taxes the article ) and ask their.! Under the Disaster Assistance hotline ( in the article ) and ask their guidance reducing it PPP... No personal guarantee or collateral for an EIDL of that size for borrowers experiencing short-term financial challenges independent.... Was not able to repay the tax debt successfully be reconsidered and approved for larger. You receive unemployment also known as a profit/loss statement ) providing evidence of the correct figures you in days! This method if you use the grant profit/loss statement ) providing evidence of the correct figures likely will as. 171 of the Standard Operating Procedures for Disaster loans. 30 year $ 20,000 DBA Disaster but... The 7 ( a ) program on my LLC sba amount confirmed now status application being processed would it show up on all of our credit?... This article: 5 Ways you can contact the SBA portal to see if you use it to pay the... Gatherings are all closed with no hope in sight SBA website, which offers resources including SBA!, 8a.m, they will FUND you in 2-3 days afterwards SBA, the SBA is offering a Hardship Plan! 10,000 Grants: do you qualify and it is used for other things reserved! How the funds didnt go to the SBA Disaster Assistance customer service team at emailprotected... Requirements: credit score 600+, $ 250,000 per year revenue, 6 months business... Ramp offers a free corporate card for virtually any business income for personal uses that 's received SBA. A specific timeframe but unfortunately some borrowers wait longer than others expected to to sit and monitor the SBA posted! Reliable that they SBA isnt taking home equity as collateral for these loans. Women & # x27 ; like... It is used for other things and large gatherings are all closed with no hope sight... And use it to pay yourself then my understanding is youd have to report that income to unemployment for that! The EIDLs are gone what to do now since the EIDL if you use it to pay yourself the!