Oops! Says processing with an underwriter. Athena contact the SBA Disaster Assistance hotline asap and ask for help. Am I allowded to PAY OFF IN FULL these outstanding PayPal debts Using the EIDL to avoid accumulating interest on them? The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. No confirmation email will be sent as a follow-up confirmation of receipt of application. You should have also received correspondence from the SBA in your email. Let us know if you can. and our If you learn something new please let us know. May I ask, did you get approved? By Phone. I need a relatively big capital to start it up. My FICO Score has decreased by 3 points. I received an EIDL loan approval amount and signed the closing documents. What do i need to do? Even though its a loan, its my understanding that it can be forgiven. Yes there is a UCC-1 filing for loans above 25,000. Lenders have up to 20 days after the date the SBA approves your application to fund your PPP loan. Also there are multiple people listed on my LLC, would it show up on all of our credit reports? This should be on SBA website, much better explanation then SBA Q&A! 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. Some borrowers have been denied based on credit scores. I had bad credit before Covid-19 but I was able to keep my business going, Covid-19 killed my business, not my credit it did not do a credit check before it closed us down. What happens if I miscalculated and received a lesser amount. But in the PPP application it asked about EIDL amount, refinance amount, if so do I just put $0? But if your loan is declined, youre not out of options! We want to decline the EIDL loan but do not know where to send the money back to. We wrote an article about that: How to Pay Back an EIDL or PPP Loan. Merchant Mavericks ratings are not influenced by affiliate partnerships. Use r/TargetedEIDL for advance/grant issues. When I was applying for the loan I used my 2018 tax return to fill up the questionnaire because i had an accident toward the end of 2018 and didnt resume driving till January 2020. I agree with Sangshin, I learned more from this than SBA or my lender. If I pay the loan off early, I would still owe the full interest. Hi I reserved 9500 eidl loan application status approved Normally grants are considered taxable. or do they only notify you if you are approved? (If you keep it, its a 1% loan for two years. Do you know how?. Weve seen some people get denied and some approved with personal checking accounts. He finally heard back from IT. Yes you can still apply. We look at the SBA EIDLs current deferment policy as well as the programs overall current status. Thank you. He told me the following: "Please try to create the increase request tomorrow morning. What do I need to do? This will let you see if the business credit bureaus already have you on file. Since its a grant I wasnt sure if I need to report it to unemployment. 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. Did you apply for PPP Michelle? Then finally was FORTUNATE someone answered at Womens Business Center in Chicago! They are working on a fix this evening late night. In this case, the person is coming up short. I didnt realize that its a loan that is not going to be forgiven. But I dont want the extra $9,000. No rocket scientist needed to figure that one out. You may also want to read our article about the new emergency EIDL grants to see if you qualify. From reconsideration requests and appeals as small as $100,000, to loan modification increases between $500,000 to $2,000,000. Best Ive found in all my searching. Let us know how well the content on this page solved your problem today. Questions and answers about starting, owning, and growing a small business only. Can this loan be used to pay off credit card debt? Hello. 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. I am about to sign a 30 year $20,000 DBA disaster loan but have questions before I do. It seems logical that you can use EIDL before or after PPP but we havent seen that spelled out. Do I have to pay the agriculture back ? Youll need to contact the SBA Disaster Assistance hotline for information. Can a personal checking account be used for the EIDL business loan, if someone doesnt have a business checking ? You can contact SBA by calling the SBA Disaster Assistance hotline. My best suggestion is to contact your local SBA resource partner to see what other options may be available in your area. Are you familiar with this. But we didnt see anything. Thanks for reading this I just wanted to share my experience. (Easier said than done I know.). A previous Chapter 7 bankruptcy may be acceptable, especially if it is older, but even recent bankruptcy (within the past two years) may be acceptable if it was due to circumstances beyond the applicants control and he or she has maintained a positive credit history since. On the plus side, this method allows you to talk to an SBA rep that will answer your questions, even if these go beyond finding out your loan status. 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. If you have questions we recommend you ask the SBA or one of the resource partners in the article. Not enough to even grasp what was saidthey HUNG up on me after less than 1 minute. How Do I payback The loan ? Have not paid any state or payroll taxes since they can be deferred and have not paid any long term debt ( credit cards). You can check the status of your application any time by logging into your account in the SBA portal. Check your loan documents and contact the SBA if you still have questions. 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. Is anyone else facing this scenario? I've tried contacting the SBA but haven't heard anything. I have a full time job but use coaching soccer as a part time job. Will they deny a person for a repossession on their credit? How has your experience been with the EIDL process? Please advise how to return the money. You can also access the SBA Assistant. You may want to reach out to them for more details. Your email address will not be published. Paul They should be able to get it with a personal checking account. 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? What can I do now if I want the EIDG and not the EIDL? 844 0 obj <> endobj If my application is approved does that mean my loan is approved? The SBA does not have a mechanism to report to personal credit from everything Ive researched and been told. All Rights Reserved. I believe you count yourself as your 1 employee. Does the fact that I will now receive an EIDL loan somehow reduce my PPP forgiveness (assuming I still spend the funds of different categories of expenses)? Many anxious business owners need to know how long does getting an EIDL loan take, so lets start there. 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. The firms in each size range below the SBA size standard are small firms. Eligibility requirements include: Meanwhile, the SupplementalTargeted Advance offers $5,000 in aid. I dont know whether that information will be shared with the IRS Scott, but regardless youll want to try to get caught up. SBA approved $1.6 million loans from approximately 5,000 lenders prior to the money running out, according to a statement from U.S. Treasury Secretary Steven Mnuchin. You cannot, however, use funds from both for the same purpose. Create an account to follow your favorite communities and start taking part in conversations. 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. It is very nerve-racking! Its important to note that the quote is NOT an approvaland it doesnt necessarily reflect how much your EIDL loan will be. Id suggest you talk to your mortgage loan officer if you are concerned about how this will impact your application. Original, on-the-ground reports from Santa Monica in your . The SBA offers disaster assistance in the form of low interest loans to businesses, nonprofit organizations, homeowners, and renters located in regions affected by declared disasters. 2022 Hourly, Inc. All Rights Reserved. We wrote about that in this article. We tried to address these questions in this article. Do I have to put net of advance? A colleague of mine is having this issue. I just received an email to provide more information in order to get the loan. After applying for an EIDL, most applicants will receive a funding decision within 21 days. According to the SBA, the way you apply is determined by how you file your federal taxes. The applicant business is NOT eligible if it: The SBA requires a business credit check from Dun & Bradstreet or a similar commercial credit agency for approved loan amounts of $200,000 or more, unless your business is a sole proprietorship. It had been replenished in December 2020 when the Economic Aid Act was passed, enabling PPP lenders to grant new loans to borrowersincluding borrowers who already received a PPP loan (known as Second Draw Loans). And when you support small business owners, you grow as well-expanding your institutional opportunity, revenue and clientele. Federal Debt (regularly scheduled payments), Make prepayments on debt that is owned by a federal agency (including SBA) or an SBIC, More than $500,000: Minimum credit score 625. Because our government dont care about the people. If you applied before funding was exhausted, the SBA may automatically reach out. You have federal tax liens of more than $10,000. Its repayment term is up 30 years. There are bills being presented that could provide additional funding for EIDL Loans. Hi, thanks for your explanations. Thanks for the update and I definitely will keep you posted! 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?? It may be used to pay off short-term business debts. 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