Griselda The grant (advance) you dont have to pay back is $1000 per employee to a maximum of $10,000 if you have ten employees. The call center is currently open MondaySunday, 8a.m. Be Persistent & Proactive When Checking EIDL Loan Status. Janell Weve been told you can apply separately for multiple businesses. 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. Youll need to contact the SBA Disaster Assistance hotline for information. I need a relatively big capital to start it up. There should be no personal guarantee or collateral for an EIDL of that size. Also, are the interest accrued on EIDL tax deductible? Our whole government is corrupt and they feed off us. If you applied for an EIDL outside of the COVID-19 portal, you can call the SBAs toll-free number to inquire about your loan status. The SBA doesnt go into that level of detail but my understanding is they are trying to avoid these funds being used to enrich owners. Could be several more weeks but he seemed surprised that it has been 15 days "processing". Otherwise, youll be better served using the online portal to check the status of your loan. Technically no but we have seen some business owners run into problems. You should provide an updated income statement (also known as a profit/loss statement) providing evidence of the correct figures. You can use the SBA local assistance locator to find help in your area. The SBAs COVID-19 EIDL portal closed on May 16, 2022, and is no longer accepting applications, requests for increases, reconsideration, and appeals due to a lack of any more available funding. We received our advance, what happens next? (Be sure to check with your tax professional regarding taxes at the state level. But I have a hard hit on my credit report from them and was rejected also if I was independent contractor then llc now how do I apply. SBA loan programs foster job creation and economic development. EIDL can be used for purposes other than payroll. Step 1: Login to your SBA Portal Login to your SBA portal here. Any thoughts? But youve correctly observed that the new PPP 24-week period for forgiveness doesnt match the loan amount (which was based on roughly 10 weeks of payroll.) Create a Nav account to access personalized financing options that fit your unique small business needs. If you have additional questions or require further assistance, please call our Disaster Customer Service Center at 1-800-659-2955 or, for the deaf and hard-of-hearing 1-800-877-8339 (Monday through Friday from 8:00 am to 8:00 pm, Saturday and Sunday from 8:00 am to 8:00 pm Eastern Time) or email us at: disastercustomerservice@sba.gov. How do I give this money back now without having to pay any interest? What does this mean. For these loans, personal credit checks go through Experian. Business owners in the Nav SBA Cares Act Loan Insights Facebook group are sharing updates on their EIDL applications. When you do I suggest you have your checking account information handy. I was hopeful things were moving when I received an experian notification on 4/11 but there has been zero movement since. We have ongoing increased sanitizing and time spent cleaning, but since we are self employed there is no proof of this work being done, and no compensation for it..of course costs of sanitizers and filters are countablejust a few questions thanks in advance.. Randy I wish I had specific answers for you. If you receive the PPP grant and the $10k advance can you take the EIDL if it is available? And how can small businesses leverage the program to get the funding they need to navigate the continuing coronavirus crisis? You can call them at 800-659-2955. q,g=e|ipx dy[j\FE/ 30 You may not get the grant if the loan was denied. You can apply for EIDL if you were in business before the date of the declared disaster January 31, 2020. I too did the slider and accepted. Im not very good at this technical stuff Im a self employed owner operator truck driver and I have a SBA loan offer for $91K I would like to save the majority of the money just in case of a new outbreak of covid19 I havent pay my mortgage for 3 months I work sometimes and I would like to use that money to get out of debt irs and credit cards on my name and use some of that money to invest in a wealth management company can you please explain what is ok to do or actually none of that is allowed? In addition to the guidelines above you may not qualify if: Its recommended that you lift a credit freeze before you apply. Youll have to reach out to them again and ask for guidance. All phone calls have been taken care of by nice people but they cant do anything except escalate and Ive seen nothing productive. It seeems that if youre using EIDL to pay yourself payroll then that would reduce unemployment or make you ineligible, but thats just my guess not legal advice. You have viewed and signed all of the docs at the bottom on the page and clicked on the Submit for increased amount button (something to that nature)? (2010) provides more complete and clearer definition of C&D waste "waste material generated from the process of . Here are two tips: We will continue to monitor this program and provide updates. Called, T2 said keep waiting as they are "getting paperwork together", 6/7 - Just spoke with t2. If you owe taxes you may be able to get on a payment plan. Typically, the SBA will make a decision within 21 days, and if approved, loans can be funded in approximately five business days. After 1 yr when we start paying back, do we have to show SBA bank records about what the money was spent on? 882 0 obj <>stream To meet financialobligationsand operating expenses that could have been met had the disaster not occurred. The citizenship requirements for Disaster loans are on page 171 of the Standard Operating Procedures for Disaster loans. See more information here. WHY HASNT ANYONE DONE THAT??? Available. Normally with EIDL there is a process where you can ask for more money. Step 3: Lookup EIDL Loan & Grant Recipients If we opt to repay all or a portion of our SBA EIDL loan early will the interest be prorated in any way? In some cases, applicants didnt receive an update for several days or even weeks. (Also read the application carefully to see if it asks this question. Next, PPP funds come through and are deposited, lets assume $10,000. You may find that helpful. What happens if I miscalculated and received a lesser amount. The loan itself does not appear on your credit reports. 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. 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. They may reach out to you at some point so make sure you provide a phone number you will answer and an email address you check regularly. Borrowers that need assistance or have questions should call (877) 552-2692, Monday - Friday, 8 a.m. - 8 p.m. EST. If that $10,000 is subtracted from the PPP forgiveness amount is there any reason to also apply for the EIDL? Thats where Economic Injury Disaster Loans (EIDL) come in. So does anyone have an opinion on why my credit was pulled by SBA on 4/13 but absolutely nothing after that? I have the same question. Will accepting the loan affect the mortgage process? Youll need to ask the SBA by contacting the SBA Disaster Assistance hotline. It's a slimmed-down version of the 7 (a) product in that you can only borrow up to $350,000. I guess my only option is to wait and see what happens. 2. Unfortunately we dont know how quickly loan applications are being processed. Merchant Mavericks ratings are editorial in nature, and are not aggregated from user reviews. Opinions expressed here are authors alone. I was shut down by New York State on March 15th and may not be able to reopen till September. What if we applied for our non profit, got the grant, got approved for the loan, and then after looking at the documents, realized its just not a good solution for us? How come they didnt mention anything about the grant. Which Business Bank Account is Right For You? For COVID-19 related EIDL you must be in business before January 31, 2020. 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. 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. Can some of the loan be used to fund a new business or only the business that the loan was processed for? What Happens After Your SBA Economic Injury Disaster Loan Is Approved? You can expect th is step to take between 10 to 21 days. 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? 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? You can also email TargetedAdvance@sba.gov. 5 Ways You Can and Cant Use Your EIDL Loan. Please contact the SBA for specific guidance, though, as I cannot speak for them. Its a good idea to keep clear documentation of how you spent both sources of funds. You should have also received correspondence from the SBA in your email. How To Make The Right Choice, Buy Now Buttons: The Key To Selling On Your Blog Or Website, the SBA recently extended loan deferments, The 5 Best R&D Tax Credit Software & Tax Services, How To Claim The Research & Development Credit On Your Taxes, The Complete Guide To Understanding & Receiving The Research & Development Tax Credit, Coronavirus (COVID-19) Guides & Resources, 7 Lenders That Are Offering Second Round PPP Loans Online. Right now the portal is closed so you cant reapply. We occasionally send out emails with special offers. No. Not sure what to expect. Someone else needs this more than we do and we would rather have it going to them indead. I dont know why you didnt get the grant. Im thinking your best bet may be to connect with your SBDC. Can I use this loan money to pay off my businesses line of credit through a different bank? SBA UPDATE Regarding the "Amount Confirmed" Issue - UPDATE UPDATE UPDATE I just spoke with a top SBA official - works under Mr Rivera..as I am also in the same predicament. The Paycheck Protection Program is no longer accepting new applications. While you certainly should be looking at all financing options available, including Paycheck Protection Program loans, you wont have to supply credit rejection letters in order to apply. yes, you are approved. I understand the requirements for the PPP, but my questions are on the EIDL. Call back. Any idea on time frame for the loan? Hello, As of May 16, 2022, the COVID-19 EIDL portal (covid19relief1.sba.gov, also known as the "RAPID portal") is closed. From what Ive gathered, it cannot be used for new equipment. I was able to get thru an explained my concern that SBA did a hard pull on my cr and I havent recieved an email or deposit an was wondering if I am correct about I should recieve the Advance now because I believe by pulling my cr I have successfully submitted an application. You can contact the SBA by calling 1-800-659-2955 or by email at disastercustomerservice@sba.gov. You are correct that additional guidance is needed. 2: Application Processed Application packages and required documents (including credit and income information) will be . Will this be a hard inquiry on my credit? Your second question is an excellent one. Can I use the EIDL for paying my 2019 taxes? Im so co fused. Can you still apply for a disaster relief loan.?. How long after, if so? If your loan is on hold, contact your bank or financial institution to determine the next steps you need to take to access your money. I understand the PPP and EIDL cant be used for the same things, so should I just use EIDL for expenses and PPP for payroll when I get it?? But wed encourage you to set up a business bank account for future uses! We are trying to decide to go ahead or not, Will this show as a loan on my credit report. These are items I pay for directly with my incomewhich is much lower due to the pandemic. Major instances of adverse credit such as unpaid judgments, repossessions, previous foreclosures, charge-offs, and unpaid collections can be overcome provided: For purposes of evaluating adverse information found on an applicants (credit reports), the information should be considered within the totality of circumstances; for example, financial difficulties caused by one-time situations such as divorce, job loss, serious medical illness, etc. She has testified before Congress on consumer credit legislation. @e!TDo:Ut,5f@Z^e`Xn0=.3\]d4#k g}A@\D-c@ M; Federal Deposit Insurance Corporation (FDIC) is not considered a Federal agency for this purpose; 8. I do not have an EIN it was all done as a sole proprietor. I thought i was supposed to recieve the grant pretty much immediately..but have yet to recieve anything..but i did recieve my loan offer tonight.. Hello. EIDL loans, along with the previous PPP loan program, have been the biggest lifelines around for many small businesses. Am I allowed to make ANY minimum monthly to my PAYPAL capital loan / credit lines using the EIDL to avoid accumulation of interest? Do they look at history or just current credit scores? This verification indicates the application was received. Told me to call back after 3 weeks from the 30th, 6/8 - Spoke with a regional rep for SBA and he called me back to tell me that my loan has been "obligated" and to keep waiting. and our This will let you see if the business credit bureaus already have you on file. Thank you for your prompt reply. No it does not report to personal credit. What happens if I go out of business in 6 months or 3 years ( a very real scenario for me) from now and cannot pay EIDL loan back ? (You want to be careful to avoid being flagged as a potentially fraudulent application.) I didnt realize that its a loan that is not going to be forgiven. You listed 0 employees on your application. Business owners can apply for EIDL loans on the official SBA website. It sounds like it to me Carol! 1. thanks. This is because not all small businesses under sole proprietorship have the business trade name . Lendio is a free-to-use marketplace that allows you to compare lenders side-by-side. No one wants to hear they have to wait for a life preserver when theyre drowning. Should I write my income according to the 2020 tax income or not? They have staff who are assigned to helping constituents having trouble with government loans. If I did the advanced ? Applications will be accepted through Dec. 31. Aaron I wrote about that in this article. You can use that funding while you wait for disaster assistance. This memorandum surveys U.S. economic sanctions and anti-money laundering ("AML") developments and trends in 2022 and provides an outlook for 2023. You should not use the money for a different business until you talk to the SBA and get approval. 3. Im sorry Sally I wish there was more transparency into the program. 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