One phone call away, at 415.850.8370, Aid is on the way! The call center is currently open Monday–Sunday, 8a.m. The link to apply for the updated HR 748 CARES Act EIDL is: https://covid19relief.sba.gov/#/ We have not written instructions for how to apply for this loan yet.. COVID-19 has wreaked serious havoc on the US economy. I’m so nervous I could throw up. Should I Take the Economic Injury Disaster Loan? Historically, it has been used for disaster areas from non-farm, private-sector disaster losses. Watch the video or read exactly what you need to do. While the SBA is administering these loans, they will be serviced by banks, credit unions and SBA-approved lenders. But monies and approvals ended up less forthcoming than the new EIDL promises to be. However, the SBA might ask for more support documents to approve your loan or, after the fact, when gathering information for repayment. Include your application number and any information required to overcome the reason for ... Mail U.S. Small Business Administration Disaster Assistance Processing and Disbursement Center . You can find the COVID-19 Economic Injury Disaster Loan Application on the SBA’s website at covid19relief.sba.gov; you may also be able to apply through your preferred SBA lender. The SBA Form 3501 (EIDL Application) no longer asks for gross revenue for the 12 months prior to the pandemic. Check with SBA disaster customer service if you have a question about the status of your loan.. EIDL Advance FAQ; Paycheck Protection Program FAQ Accessed Jun 17, 2020. Answer: Once your state or territory has an official declaration, a business owner can access the application online at sba.gov/disaster. Suppose your business is a separate business entity, such as a C Corp or Limited Liability Company (LLC). This means that the amount you are given through the program will not need to be repaid, even if your loan application is rejected. COVID-19 Economic Injury Disaster Loan (EIDL) 1. SBA disaster loan applications are available directly through the SBA website — and are a lot simpler than your typical SBA application. At the very least, expect to provide your business’s last tax returns and a personal financial statement. The loan must be used for fixed debts (rent, etc. Wonderful! Like all loans, the key is to understand your responsibilities and risks before you sign. Let’s break down the top reasons that may have led to your application being denied and the steps you can take to assure you secure funding on your second attempt. How To Apply For The Economic Injury Disaster Loan Grant Program. He needed a personal email address for both my husband and myself. Those numbers likely will rise as the application deadline for EIDL loans is not until December. Small business owners in all U.S. states, Washington D.C., and territories may be eligible to apply for an Economic Injury Disaster Loan (EIDL) of up to $2,000,000 because of the COVID-19 disaster. I'm still waiting after portal on 5/18. Questions? Those numbers likely will rise as the application deadline for EIDL loans is not until December. 3600192 has been approved. But simplified doesn’t mean assured, and if you recently applied for an SBA Economic Injury Disaster Loan only to have your application denied, it doesn’t have to be the end. Lord knows theres nobody at the SBA to talk to about it. Using the PPP funds to pay off the EIDL will result in that portion of your PPP loan not being eligible for forgiveness. SBA refers to the EIDL as an advance; because it will be subtracted from the total loan amount you are issued. © Copyright 2003 - 2020, Small Business Trends LLC. Borrowers will “to the extent feasible, purchase only American-made equipment and products with the proceeds of this Loan.”. PPP is to be used for payroll, not repayment of loans. Those delinquent on child support payments, Businesses making money from sexual products or services, State, local, or municipal government entities nor members of Congress, Federal Tax ID number or social security number, Entity type (independent contractor, sole proprietor, LLC, S Corp, C Corp, or partnership), Gross revenues for the 12-months prior to the date of the disaster (January 31, 2020), Cost of goods sold for the 12-months prior to the date of the disaster (January 31, 2020), Rental properties (residential and commercial) only (lost rents due to the disaster), Nonprofit or agricultural enterprise cost of operation for the 12-month prior to the date of the disaster (January 31, 2020), Compensation from other sources received as a result of the disaster (such as the PPP), Primary business address (cannot be p.o. IMPORTANT: The instructions in this blog are for the first round of Economic Injury Disaster Loans (EIDL). From all your posts we could tell you were sweating it, now I wonder how long they'll torture you until funding??? NO I got an email that said my loan was approved and to go to the portal and sign. Borrowers are prohibited from selling, transferring, or attaching future liens on the current collateral/assets such as equipment. (EIDL Advance grants are no longer available). The EIDL isn’t new. Do you know if they can be used to purchase a new van for your business? As of mid-October 2020, the U.S. Small Business Administration (SBA) has approved 3,612,236 Economic Injury Disaster Loans (EIDL) totaling $191,994,805,796. I just got a call from a LO. In order to get your PPP forgiven by the lender you must show how the funds were used. Loans up to $2M ; 30-year terms ; Interest rates of 3.75% for small businesses (2.75% for non-profits) First payment is 12 months from the date of the promissory note Answer: Visit SBA at sba.gov/disaster and apply online using SBA’s Electronic Loan Application. The SBA reviews your credit and requests additional documentation. Small businesses and non-profits adversely affected by the COVID-19 pandemic are strongly encouraged to consider applying for the U.S. Small Business Administration’s COVID-19 Economic Injury Disaster Loan throughout the month of December. The bottom line, the EIDL program, if you are approved, can make the difference between business resilience or failure, and the excellent terms are attractive. Follow these steps to apply for an SBA disaster loan: Check your eligibility.Make sure your business meets the SBA size requirements if it has over 500 employees. EIDL loans less than $200,000 don’t require personal guarantees. EIDL loans are issued directly from the U.S. Treasury. Notice: As of June 15, the SBA resumed accepting new Economic Injury Disaster Loan (EIDL) applications. If you’ve already applied, there is no need to reapply as applications are processed on a first-come, first-serve basis. SBA ECONOMIC INJURY DISASTER LOANS COVID-19 ... o The list is updated periodically and on the same day a new declaration is approved. Resource partners such as SBDCs, SCORE and Women’s Business Centers can help as well. Our mission is to bring you "Small business success... delivered daily.". “The SBA Office of Inspector General and the agency’s federal partners are working diligently to resolve Economic Injury Disaster Loan and PPP fraud incidents. Hello every one ,I borrowed a money over 25 000 dollars and when They asked me to have insurance ..I don’t need to have it , I am taxi driver . How do I apply for an Economic Injury Disaster Loan? After your portal showed processing, did it at one point say, "Denied." You can also request a loan increase within two years of your original EIDL if you experience additional hardships due to the disaster.eval(ez_write_tag([[580,400],'smallbiztrends_com-large-leaderboard-2','ezslot_2',151,'0','0'])); Also, for EIDL disbursements over $25,000, the SBA has specific collateral rules. The first and most important step is to contact your banking partner. It’s a Hard Maybe for Me. We take care of your application paperwork, facilitate the loan interaction with the SBA, and ensure rapid acquisition of funds; s afeguarding that your business does not falter. WASHINGTON – The U.S. Small Business Administration today announced that the deadline to apply for the Economic Injury Disaster Loan (EIDL) program for the COVID-19 Pandemic disaster declaration is extended to Dec. 31, 2021.. We break down step-by-step how to fill out the SBA Disaster Loan Application. Here we can discuss EIDL loans, advances, and all things related to the 2020 CARES ACT. Those fortunate small businesses that have already received their loan monies can rest easier, but the work may not be over. box), phone and email, Number of employees (as of January 31, 2020), Owners’ names and personal information, including birthdates, social security numbers, home addresses, and percentage of ownership, Banking information (routing and account numbers), Projected Financial Statements (prepare a one-year projection of income), Ownership and Affiliations (List of names and addresses of any subsidiaries and affiliates), Income Tax Returns (Business and Personal), Statement of Good Standing with the state, Articles of Incorporation (Articles of Organization for LLCs), Meeting minutes showing Board approved EIDL application, A statement designating the person or persons by name and title authorized to sign the SBA loan closing documents. The loan agreement also states no individuals are personally liable for the loan, and the entity (the company) accepts the responsibility for the loan. Your email address will not be published. Economic Injury Disaster Loans The additional funds include $310 billion to fund the Paycheck Protection Program (PPP) and an additional $60 billion to fund Economic Injury Disaster Loans (EIDL). There are no minimum requirements for how long the borrower has to be in business. Your SBA Application No. Disaster Loan Assistance Federal Disaster Loans for Businesses, Private Nonprofits, Homeowners, and Renters It is now being promoted as a key government small business loan to use for the economic effects of the coronavirus outbreak as part of the CARES Act. Like for many other small businesses, revenues started to slow down, while expenses remained the same or increased. In addition, some of the information in this article is outdated. Other specifics of the loan include:eval(ez_write_tag([[300,250],'smallbiztrends_com-medrectangle-3','ezslot_5',149,'0','0'])); The SBA also lists the types of businesses and business owners not eligible for the EIDL loan program. Repayment is not required to start for one year from the funding date, the interest rate is 3.75% (for nonprofits, it is 2.75%), and terms are up to 30 years. Other fine print stipulations to look out for are: Finally, in today’s uncertain economic climate, you are most likely concerned about your ability to pay back the loan—even with a year’s deferment. Your SBA Application No. What can these funds be used for? The SBA's goal is to decide on your application within three weeks. "SBA’s Economic Injury Disaster Loans and Advance Program Reopened to All Eligible Small Businesses and Non-Profits Impacted by COVID-19 Pandemic. 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