90% of my annual income is commissions from sales of homes. In addition, Congress approved $310 billion in funding for Paycheck Protection Program (PPP) loans. You can call the SBA Disaster Assistance hotline to confirm receipt of your application but you won’t be able to get a date when your application will be processed however. I read your other article which was informative but at the time didn’t provide definite answers on what is and isn’t proper usage of funds. EIDL can be used for purposes other than payroll. I am a sole proprietor real estate agent with no employees other than myself. I maybe would like some help on the application . Did you apply for PPP Michelle? Hi I reserved 9500 eidl loan application status approved I don’t see where I can decline the loan. Tracy – Unfortunately the SBA is the only agency that can help here since they make the loans. 7 Questions About PPP and EIDL the SBA and Treasury Need to Answer ASAP. Hello Eric. I do have a SBA loan for our property and new construction approved in July 2018 and completed in August 2019. Does this mean we’re approved for the loan? John, results seem to vary. What if you receive a bigger payment from grant than your ppp loan? It’s very possible they don’t intend for EIDL grants to be taxable but it’s not in the legislation and we have no written guidance from Treasury/SBA like we do for PPP. Tory – EIDL can be used to pay working capital expenses the business could not pay due to the disaster. 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. What happens if you defaulted on a SBA loan over 20 years ago with a different business. Now the SBA is asking that I sign loan documents. Another lockout of the system for us small black-owned business…again! Hi Debbie – we’ve published an article on how to pay back your EIDL loan. “The SBA says there … I never receive the loan advance and now there saying they have ran out of money. I can’t speak to the mortgage process – you will need to ask your loan officer. Do you know what the certification means that says “if feasible I will purchase American-made goods and products”. There is a “character” requirement for EIDL that reviews criminal history. I applied the EIDL I never received anything saying I was approved however there was a direct deposit that was rejected from my bank from SBA will I receive a check in the mail? To pay IRS taxes for the year? I’m an adjuster who applied to help me get through as we were slowed due to COVID. If the SBA employees are saying otherwise that’s concerning. I’m loosing money like everybody else. 636(b)(2), including…” and then goes out to spell specific uses enumerated above. He then updated me on my loan request… What about the $1,000 advance I received. Will the EIDL loan show on your credit report for 30 years? This number indicates that funds are reserved for your loan. You can’t pay owner distributions. Tip: You can check your business credit with a free Nav account. Let me know what you find out! Do I have to put net of advance? Gerri, Yes, on the PPP application if you did not get an EIDL before April 3, 2020 you put $0. Why would EIDL loans be different than PPP? Please let me know. But you may want to check with the Disaster Loan hotline. As with other SBA loans, this financing is not actually funded by the agency. However, at some point you may need to supply some of the following information so you may want to familiarize yourself with these forms. Checking won't hurt your credit scores. We asked that same question in this article: High or low debt utilization. David – I checked with Bob Coleman publisher of The Coleman Report which is one of the leading training firms for SBA loans. Please see question above. Hello, My question wasnt answered. What Do I List for the Amount of Physical Damage? My sense is they are mainly concerned about fraud and default (taxpayers ultimately fund these loans). If you receive the PPP grant and the $10k advance can you take the EIDL if it is available? If not, then it may not matter. The Vehicle is a commercial business vehicle and only used for the business purposes. You can request additional funds in the future if needed. Once the loan has been approved, the SBA currently estimates that it will take approximately five days to receive the money. How do I cancel my EIDL request? Normally with EIDL there is a process where you can ask for more money. If yes, should I reapply? You have up to six months to request a reconsideration. When it comes time to pay in a year will my payment amount stay the same regardless of the amount of interest built up between now and then? Normally grants are considered taxable. I’m confused what I can use the SBA loan for. Do I Need to Accept an Economic Injury Loan in Order to Get the Grant? I only wanted the grant, which I thought would be $10,000. I had my credit pulled for the first one on 4/12 and then the next day $10,000 put into my account on 12/13. Emails are the same. Small Business Owner meets with a lender. Check your spam folder frequently as well. I’ve already gotten my PPP. The SBA will conduct a “credit available elsewhere test” in the review to see if the business has sufficient cash flow to obtain a loan other than the EIDL. Athena – contact the SBA Disaster Assistance hotline asap and ask for help. Are they actually using a first come first served process? I applied for an SBA loan and got approved for $1500 four days back. 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 I’ll need to repay the $10K “overlap” in the future? You may want to discuss it with your loan officer. The inability to access the promised funds quickly — or in many cases even receive confirmation that their application is being processed — has led to a mixture of panic, anger and fear. 6/4 - 10 days since portal invite. Any loan offered to you (sole proprietor) or your business by the SBA after reviewing your application will have a 12-month no-payments grace period or “deferral” starting the day the approved SBA loan note is signed. I haven’t received either the grant or loan. Some borrowers have been denied based on credit scores. The Paycheck Protection Programprovides $350 billion for 100% federally-guaranteed loans for 8 weeks of assistance to small businesses and 501(c)(3) nonprofits with less than 500 employees. Expected the amount to be deposited within 3 days. (That can include home equity.) John – We’ve published a new article about ways you can use EIDL. We’ve been told by sources we consider reliable that the SBA will be filing a UCC-1 filing which is a fairly broad lien on assets. Have at it! Another week passed after I accepted and I was then notified that my application was denied due to my credit being low. My income has only suffered slightly unlike what was expected when this all started. Denis – I doubt it. I received from the sba an email approval for the eidl loan at 3.75% interest. Your loan application will be processed by a case manager. A loan officer will contact you to discuss the loan amount recommendation and your next steps. Use our CARES Act SBA loan calculator to see how much money your business may qualify to get. Beyond the time spent compiling your business plan and package of documents, the lender can take a minimum of 60 to 90 days to approve your application. Is the monthly number set in stone ? I need a relatively big capital to start it up. Can you still apply for a disaster relief loan.?. It has been 7 weeks since that day but I don’t see anything FUND. The business will need the appropriate documentation (business and financial) required that shows it is a viable business such as valid, detailed monthly cash flow projections, a business plan that was prepared for a lender, etc. Since this program is now available for the self-employed and individual contractors… how do the EIDL grant provisions of using the grant money to provide payroll for employees apply if you are the only employee? i.e. There are still funds available in that program. It can and likely will change. Does everyone get the grant? They now state “days within”, FYI the CARES Act states: “within 3 days after the Administrator receives an application from such applicant.”, Hello Gerri, Thanks for the kind words! Small Business Owner prepares business plan. It looks like EIDL grants are tax free. The SBA does not have a mechanism to report to personal credit from everything I’ve researched and been told. I’m apply EIDL And got $1000 grant, but I’m just self-employee. providing paid sick leave to employees unable to work due to the direct effect of the COVID–19; maintaining payroll to retain employees during business disruptions or substantial slowdowns; meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains; repaying obligations that cannot be met due to revenue losses. Yes you can request more funds. We have started to pay back the loan early, will the disaster loan effect my credit? I have called the SBA and nobody is on the same page or they brush you off by giving you an answer that is no where near what you have asked. My total payroll for 24 weeks is more than what i received in PPP. No it does not report to personal credit. We were approved, have no employees. I didn’t realize that it’s a loan that is not going to be forgiven. Check with your lender to see if they can tell where your application is in the process and if you have a loan origination number from the SBA. I applied for the sba loan back in June , I got approved and funded, I have been a self employed working as a taxi driver and delivery driver since 2016. Feel free to share comments that help them understand your situation, but try to keep them succinct and clear as they are reviewing a lot of applications. I’d suggest you contact your local SBA office and see if they are able to answer questions and/or contact your Small Business Development Center (SBDC) or SCORE office. 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. SBA offer $11500 loan approved for myself with 3.75% and 30 years term Will we have to sign loan documents before we receive our loan? You can contact SBA by calling the SBA Disaster Assistance hotline. Fill out the Application Form in Full. Can I simply transfer funds to my other account and call it payroll or do I need to break it down to specific items (vehicle payment, house payment, electric, etc..). Payments of $93 per month starting 12 months after closing. I don’t know why you didn’t get the grant. Hi everyone. Has anyone else had anything like this happen? No. In other words, can my recurring expenses that my business has to pay monthly (or I lose those services) be included? Homeowners and Renters: Submit a completed loan application and a signed and dated IRS form 4506-T giving permission for the IRS to provide SBA your tax return information. Show some patience; they want to help you. We have the PPP and the EIDL foregiveness grant and a loan. Tip: Don’t make the person reviewing your application guess. It appears that my PPP request amont was already reduced by this $1,000. As an owner, I am not a W2 employee, others are ICs, and one admin that is a W2 employee. Does anyone know why this happens. No. Obtaining new lines of credit while you are applying for a mortgage loan is essentially forbidden. It’s our understanding you may be able to get an EIDL (including a grant) and PPP to use for different purposes. I did my own too and i answer all my identity question correctly but still my application showing …..Your application is being processed…… over 20 days. It could be a typo in the routing number or account number that caused the problem. We still have received nothing and I am concerned we should be reapplying. To earn forgiveness, y ou must diligently document how you spend the money. Once they are signed by you, and the SBA receives the Loan Closing Documents, an initial disbursement up to $25,000 will be made within five days. Can I pay my mortgage? thanks much. If you want help with the application contact your local Small Business Development Center (SBDC) or SCORE chapter which you can locate at SBA.gov/tools. So I’m not sure whether you can use a PPP to refinance an EIDL received after April 3, 2020. Will the $10,000 PPP loan now only comprise of $8,000 forgivable because of the $2,000 cash advance? How can I return my EIDL Advance (Grant). are encouraged to seek or use them. The Department of Treasury and SBA continue to make clarifications on loan forgiveness. My business did not get the grant, I was told my routing number goes to another bank and I read it straight of the check. We recommend you open a business checking account and use it for your business going forward. Have you read this article? If you learn something new please let us know. We’ve seen some people get denied and some approved with personal checking accounts. I haven’t seen any guidance on it. The manager will also schedule subsequent disbursements until you receive the full loan amount approved and accepted and documented. Now, my question is, if I sign the loan documents, would I receive an extra $1500 or just $500? (Be sure to check with your tax professional.). Is the purchase of a vehicle included as “working capital”? I misunderstood that i believe. No help with loss of my income as a result of the virus and it’s effects on the economy? But if you are pursuing an SBA or SBA 7(a) loan, chances are you’ll have to be patient.That’s because the government agency’s wheels can turn slower than you might like, meaning it can take longer to get an SBA loan. I don’t take “payroll” as they are just deposited in my normal everyday account and used to pay household bills. I have 2 questions. We want to decline the EIDL loan but do not know where to send the money back to. 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. We wrote about that in this article: 5 Reasons You May Want to Reconsider An EIDL Loan. You did not check the box on the online application that said you wanted to be considered for the grant. Startup Junkie and Conductor previously published a more detailed “Get Ready Guide to Applying for an EIDL” that listed business documents and records needed to start the EIDL application, and it provides a link to all the SBA forms you will see in the application portal. Can I continue to receive unemployment benefits if I received the EIDL loan? I get hung up on every time i stay on the phone for 2 hours this is just a mess. Your business must be directly affected by COVID-19. Laura – Call your elected officials in Washington. Yes you can request more funds. EMAIL IS THE BEST OPTION IF YOU MUST DO THIS. Hello! *You get free access to your business credit reports and scores when you sign up for a free Nav account. Posts EIDL Support Group CaWeb Portal PPP Posts Go Here Other Disaster Loans EIDL Portal Login. When you sign up for a free Nav account. Thanks for the kind words! I only had to wait 16 minutes for a representative to come on the line. Joanne – Are you using your EIDL funds for payroll? Do you think I should apply for both or just EIDL? 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? Is there any way I could check if he actually got the loan and used it for himself .? You can reject the EIDL loan or repay it without a prepayment penalty. do we just not sign the documents and let the two months run out? I need to plan about employees, healthcare and more on if I can afford to continue paying for these things, if I don’t get the other loans I have to reconsider how to move forward. It is your job to make sure you know the rules. SBA does not provide any info and most accountants have no idea and (mine included) will not provide “concrete” answers. I applied for EIDL and received $9000.00 in my bank account last week. It is very nerve-racking! Complete your PPP Application in 15 minutes or less. I have never seen a UCC filing on personal credit. The system rejects it. I sweat in the sun and have essential duties. I have written a very comprehensive business plan for this new business. Credit expert Gerri Detweiler is Education Director for Nav. (Additional requirements regarding the payment of federal debt start on page 75 of the SOP.)”. I have not received anything (info/money) regarding the EID grant? Thank you for your attention. A colleague of mine is having this issue. No. Borrower must pay principal and interest payments of xxx.xx every month beginning 12 months from the date of the Note. If you have damaged credit, apply and include an explanation with your application. Am I qualified if I file a loss on my 2019 tax for EIDLS. We were unable to successfully verify and validate all of your information in order to process your advance. Our Thank you for your article. If you applied previously and your application number started with a “2” you may want to apply again. Or should I just return the EIDL and survive on PPP alone? See this guidance from the IRS as one example. 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?? We are reaching out in regards to your request for an EIDL advance as part of application number #0123456789. I only applied for the EIDL grant and received $4,000 for each of the 4 employees we have. 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