6/15/2020 SBA now accepting new applications for EIDL Advance sba.gov
6/10/2020 Article by Nav “5 Reasons You May Want to Reconsider an EIDL Loan” at nav.com
- The SBA is processing applications that have been stuck in the queue. Checking to see if your business credit report has been pulled is the best way to know if it is being processed. (7/1/2020)
- Please note local SBA offices cannot check or access your EIDL application status. Please contact our SBA Office of Disaster Assistance directly at 1-800-659-2955 (TTY: 1-800-877-8339) or email email@example.com.
- Those who applied for SBA EIDL before March 27 and had an application number that began with a “2”, contact your regional SBA. https://www.sba.gov/offices/district/wa/seattle
Excerpts from Washington SBDC CARES ACT webinar
Lender for the EIDL is the SBA not the banks.
Available for most for-profit businesses including self-employed and independent contractors. Exclusions are Farms, Gambling, Religious, Some Charitable and Cannabis entities. Owners of rental properties are eligible for lost rents.
Amount up to $2 million, Term is either 15 or 30 years, Interest rate is 3.75% for for-profit and 2/75% for non-profit. Payments will start a year after the date of the approval of the loan.
Collateral – Unsecured up to $25K, Available collateral will be requested for over $25K. Lack of collateral will not by itself disqualify applicants. Real Estate is not being taken for collateral.
Payment Deferral Period is 1 year. The EIDL is not a forgiveness loan.
No cost to apply. Processing time can be 3-5 weeks although some who qualify easily are quicker.
Loan availability is January 31st, 2020 to December 31st, 2020. Increase in loan amounts can be applied for later if the initial loan amount does not cover all of the Economic Injury.
Loan Usage is for operational expenses only such as payroll, general expenses, accounts payable, lines of credit, bridge loans, returns of customer deposits, etc. The EIDL cannot be used to pay down long-term debt. Businesses that have enough cash to weather the crisis will not be eligible.
Loan Crossover or Stacking – It looks like business owners can apply for the EIDL and the PPP but the funds cannot be used to cover the same purposes.
Information and documents that might be needed – Financial reports (P&L, Balance Sheet, Cash Flow Statement, A/P and A/R) from January 31, 2019 to January 31, 2020. 2019 and/or previous year’s tax returns may also be requested/used.
Credit Scores are not a dis-qualifier for the applicants as long as negative credit information can be reasonably explained. Ability to repay the loan is a key qualifier and will involve analysis of the borrower’s ability to repay.
Economic Injury Disaster Loan – Advance. This is a feature included at the end of the EIDL application. It gives you the chance to obtain a $10,000 advance with no strings attached. This loan is instantly forgivable which makes it a grant. It does require completion of the EIDL loan. Funds are to be deposited into the bank account that you provide within 3-5 business days.