Share Question. ANSWER: These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. We’ll walk you through loan amounts, uses, and qualification requirements for businesses seeking support and as a reference for previous EIDL applicants. One thing you have to keep in mind: If you receive both the Paycheck Protection Program loan and you get the $1,000 EIDL grant, $1,000 of your Paycheck Protection Program would not be forgiven. Close. If you have more specific questions on the allowable usage of EIDL funds, one of our moderators, u/Scorpio14534 who is also a licensed professional CPA that is very knowledgeable on this matter is open to email requests. Press question mark to learn the rest of the keyboard shortcuts. Close to Vantage 3 model found on nav DOT com or TransUnion numbers on credit karma. There are a couple of factors that set EIDL apart from PPP. ANSWER: This occurs when the numbers entered on your application for COGS are greater than your revenue. In other words you need to use the funds for qualifying purposes other than simply owner income replacement. Write your exact ID & password down somewhere - if you ever get locked out and call the SBA for help, they are going to tell you that Borrowers are not supposed to be able to access CAFS CAWeb. I have seen it happen in as fast as 10 minutes or as long as 12 hours. -Tax liens or tax issues are NOT a disqualifying factor or taken into consideration for COVID19 disaster. By using our Services or clicking I agree, you agree to our use of cookies. If you click on your loan# in the list, it opens up a page with details about your loan. I'm hoping I'm not now capped at $150k. Will a loan officer contact me? I hope you run for office. ANSWER: Portal invites are a fully automated process and not strictly sequential but follow general group patterns. E-2 Investor visa is NOT eligible and any attempts to appeal or add a co-borrower who is a citizen or LPR will be unsuccessful. Email? And check out some of our other videos on buying rental properties and real estate investing! Can I change it? The tip jar can be found HERE. See list on FAQ. Click on the "ZIP LOOKUP" button after you enter your zip code. Your EIDL will show up as "Disbursed Current" if funds are on their way. Credit Pulled (waiting for automated portal invitation, this is by far the longest part of the process), Quoted (received portal invite with an eligible amount), Offer Accepted (you confirmed and submitted an amount in the portal), Submitted Deal (waiting to be assigned to a Loan Officer), LO assigned and makes decision: Declined, Duplicate, Approved, [The following takes place behind the scenes and will not reflect in your portal, but will still say "processing"]. It is important to note that if you also received the PPP loan, the EIDL grant will reduce the forgivable portion of the PPP loan dollar for dollar. I see it every day and people are stuck its the "kiss of death" advice. The first is the entity granting the loan. -Minimum Credit Score of 570. What are all the possible uses of the funds? Congrats. If your only revenue was earned after that date as a newer business you may not qualify, but it is possible to use a 12 month projection which you can submit to reconsideration. OFFICIAL FREQUENTLY ASKED QUESTIONS AND ANSWERS FOR. Obligated: A loan number from E-Tran has been obtained and now closing documents can be drafted and sent to the borrower. I received a denial letter for the reason "ECONOMIC INJURY NOT SUSTAINED". They can be reached here: Scorpio14534@protonmail.com. QUESTION: What are the eligible uses of EIDL funds? If you do this manually, make sure you start early. The option has been removed from new applications. Usually due to small technical issues or errors in your information that need to be sorted. Press question mark to learn the rest of the keyboard shortcuts. If you don't have a landline, it has been reported that just entering your mobile number in both fields works. There's even a box at the bottom to check if you want electronic account statements only, but if you check that, a warning pops up about "all attached to this loan will be affected by this change", so we recommend not selecting that option just yet. Establishments primarily engaged in subdividing real property into lots and developing it for resale on their own account. They will pull from experian. This article was written by u/tahoechick36 , a small business supporter and user of Reddit. Been trying to reach you but unable to send pm. You will have to select 3 of their security questions, enter the Captcha image info, then hit "submit" at the bottom. -Business start date must be prior to 1/31/20. If you already accepted you may have time but would need to work quickly from date of submit. Thanks for your help!! This will make it even easier to keep track of how you are spending the loan. Its my understanding that SBA pulls Experian Vantage 3, and minimum score needs to be 570. It will be all by email and US Postal mail. Do NOT panic if it seems "stuck" with no communication from anyone. *You can request to add a co-borrower that has a higher score than 570 with no open bankruptcy and run their credit to reactivate your application. The SBA calculates economic injury based on the formula in question number 4. Unlike other loan options, there’s not a great deal of difference between an EIDL and an EEIG. They can be used for financial obligations and operating expenses that could have been met had the disaster not occurred. This will not change anytime soon and there will be no way to request more at present. Concerns Engaged in Illegal Activities (as defined by Federal guidelines). You can contact pdcrecons@sba.gov and request a "Loan Modification increase". Closed OK. -Arrest for misdemeanor < 5 years = Declined, -Sole proprietors with delinquent child support > 60 days = Declined, -Any business principals with 50% or more ownership with delinquent child support > 60 days = Declined. Think: paid sick leave, payroll, buying materials, making rent and repaying obligations. What is the normal amount of time? 9. When I sent emails to recon i sent the email to all three: • pdc.recons@sba.gov • PDC.reconsideration@sba.gov • disastercustomerservice@sba.gov Do to an extreme flood of requests for help, I will not be able to answer PM's or chat requests. 20. This means the Loan Officer has approved the deal and it is now going to the Senior Loan Officer. I received a decline letter for “Business activity not eligible”. 123.19: May I request an increase in the amount of an economic injury loan? This. It may say something else if you look immediately after you send back you Docs, but it should change pretty quickly. Based on the calc, would your loan have been eligible for more than the $150k? This thing is going to be a clusterfrick of epic proportions. If this is a negative number you will be auto declined. UPDATE: As of 7/20 the current queue/wait time to be assigned a loan officer, get approved, and have closing docs drafted is 14-18 days. This is valuable and accurate information that I’m glad you shared. QUESTION: What are my chances of being approved for this loan? Note: The exception to this process is that some applications which are considered easy (based on unknown factors) to approve are subject to full automation and may go straight to approval bypassing the above steps. I use a CPA and a bookkeeper. What documents are required? -Your business type must not be on the list for ineligible business activity. If we have received both the PPP and EIDL does anyone know if we can hold the EIDL in a high yield savings account until we are ready to use them? I need to change my Rev or COGS and I already accepted an amount in the portal, Tier 2 told me to do it! You are NOT "stuck" if you are still within this time range. Docs will not show up until you get an email with the approval. Agricultural businesses: 6 months operating expenses year prior to 1/31/20, If the formula results in a negative number or less than your advance you will be declined for "ECONOMIC INJURY NOT SUSTAINED". The SBA itself is handling EIDL applications, whereas PPP requests have to go through banks like Wells Fargo or Bank of America. SBA loan #'s are 10 digits. QUESTION: I received my portal link, but when I go to create an account it just takes me to the login page or I get the error: "The user account has not been confirmed yet. What are my options? ANSWER: There is no way to request a specific amount, the eligible amount is calculated automatically by formula based on your inputs. Please note, anything donated prior to contacting me in an effort to gain faster help/special attention won't yield those results, while appreciate your support I keep everything fair to others who don't donate. You have documentation to backup the changes such as Federal Tax Returns 2018 or 2019 or P&L Statements. It is a 3-4 week process that requires documentation. The CANs.. Please click on the Grennan Fender COVID-19 Resource Center for up to date up-to-date news, developments and resources you can use to navigate the challenges of these times. Concerns Involved in Change in Ownership Situations: Concerns which had a substantial change of ownership (more than 50 percent) after the impending economic injury became apparent, and no contract for sale existed prior to that time are ineligible . I just prefer to stay an anonymous helper. Now head to the Transactions page. However, I owe some money to the IRS based off of my 2019 taxes. This blog is to discuss what the EID-Loan is, what its used for and to help you decide if you want to move forward in the loan process. Most are very nice and well meaning people but are usually poorly informed and often provided contradictory information between calls. ANSWER: The highest level of official customer service is known as "tier 2" and can be reached by calling 1-800-659-2955 and asking for Tier 2. Your Application # will NOT work for account set-up. Another wrote that the deposit may take as … 6. In this scenario, the Economic Injury Disaster Loan (EIDL) is the older sibling. Proceeds can be used not only for mortgage payments, but other operating expenses as well. I was declined for "unsatisfactory credit". What do you expect when clients stop paying over 2 months. It's a pain. It allows you to see disbursement status and other details related to your loan. Is it too late? What can be done? EIDL GRANTS. 13. -Your business must pass verification in some way that it is a valid operation. My loan as obligated or already funded, I made a mistake with my COGS or revenue and I am not happy with the amount. an EIDL into a PPP loan, any advance amount received under the Emergency Economic Injury Grant Program would be subtracted from the amount forgiven in the PPP. Download printable blank or edit form online. One is the EIDL, and the other is the Paycheck Protection Program. Obligating: SLO known as a "team leader" reviews the work of the first LO to ensure everything was done correctly. It’s been a week since I applied and there has been zero correspondence and no information out there. If you have a PPP Loan, you can use your SBA # for this loan to set up an account. Closed signs hang on a fast food restaurant amid the … I worked very hard to make sure everything was factual. It can be used to pay business fixed debts, so if you use your personal car for Uber, you wouldn’t be able to make your car payment with that. Enter a name that you'll easily recognize, like "EIDL grant." Funded: Process complete, funds are successfully in your bank account. What is the normal amount of time? With abiding respect to all. QUESTION: Who are you, cue378? If you have a PPP Loan, you can use your SBA # for this loan to set up an account. One section of the EIDL agreement, “Books and Records”, outlines your bookkeeping and recordkeeping responsibilities, such as maintaining accurate books … Cue, you are absolutely the best ever and you undoubtedly have positively impacted many lives- potentially millions of lives since these business owners have employees. QUESTION: What is CAWEB and how can it help me track my loan disbursement and other status? How to save your business through the art and science of downturn management. did you put the app number on the subject line of the email? Can you help me? This only happens in rare cases. TO BE CLEAR, I am not discussing the EIDL advance $$ ($10k grant that is limited to $1k per employee) OR the PPP Loan. For older applications please see this post for more information: https://www.reddit.com/r/EIDL/comments/hr3l41/eidl_news_714_update_regarding_the_current_status/. Can I change it? ANSWER: The loan is relatively easy to get approval for by loan standards. 4. ANSWER: You can use the Capital Access Finance System to track your EIDL after your documents have been signed and submitted through funding. Credit scores did you guys have when declined? 10. SBA will consider your request for an increase in the loan amount if you can show that the increase is essential for your business to continue and is based on events occurring after SBA approved your … Keep in mind that once you accept in the portal a number of things are going on behind the scenes, which is why "processing" can take a great deal of time. The CARES Act added to the EIDL program a one-time emergency grant of $1,000 per employee, up to a maximum of $10,000. Things change frequently at the SBA with policy and you should check back on this thread on a regular basis. 19. What you can use the PPP for. Use the EIDL on operating costs during the covered 8 week PPP period - after the period, I don’t see anything stating you can’t use EIDL funds for payroll going forward. I’m a sole proprietor, can I use the funds to “pay myself”? What. p. Government-owned concerns, except for businesses owned or controlled by a Native American tribe. QUESTION: My loan was obligated, already funded, or I already accepted the amount in the portal. 1. Visit caweb.sba.gov or click the link at the top of r/EIDL, You need a SBA Loan # to set up an account - for EIDL it appears on the first page of your documents, in the upper left hand area, and says "SBA Loan # XXXXXXXXXX.”. or may be you provided all the info and no need to ask for further info for your request. The loan has not yet received a loan number from E-Tran while obligating. (advance is OK), Lending or Investment Concerns (except for real estate investments held for rental), Multi-level Sales Distribution (Pyramid) Concerns c. Speculative Activities d. Non-profit Organizations that are not considered a Private Non-Profit. *IF YOU HAVE ALREADY ACCEPTED THE OFFER: Call tier 2 support as soon as you possibly can and ask them to make the following note in your file: Loan Officer, DO NOT approve this file without calling me, the applicant, because my (revenue or COGS) figures are wrong. ANSWER: The amount of time it is normal for your portal to say "processing" is highly variable as a hundred different factors are involved behind the scenes. If they can find it on google it will suffice. I paid business expenses with the loan, all 100% legit, back in August. Applying for SBA Economic Injury Disaster Loans (EIDLs) Baltimore District Office How can I use EIDL funds? This is the most common phase where hang ups in "processing" can error called "error in obligating". I have been a lurker and only created an account to ask some questions of the accountants here because ours is out due to surgery prior to COVID and then complications. 580 FICO so I would assume like 520 Vantage? Can I use EIDL funds to pay my quarterly estimates moving forward? Logging out and back in again will sometimes refresh the status. Otherwise you may have to provide documents to prove it's a legit business. Can I still get a grant? ANSWER: For supporting Cue378, there is a tip jar listed above. Businesses whose purpose for being is gambling (such as casinos, racetracks, poker parlors, etc.) EIDL restrictions around collateral, business structure and use of funds may surprise some business owners. QUESTION: I finally got a portal invite and accepted and submitted an amount. Your Application # will NOT work for account set-up. The problem is that once you accept you set the process in motion and then it gets obligated by treasury it is impossible to adjust. What is CAWEB and how can it help me track my loan disbursement and other status? *As of July 20th the SBA is no longer allowing the use of a Co-Borrower for reconsideration of an insufficient credit denial. This auto populates some other boxes, and registration won't work if you don't do this. So if a T2 says they requested a change do not assume it was or will be made. Loan Use An Economic Injury Disaster Loan (EIDL) can be used to support your business with working capital to cover day-to-day expenses. If I hear anything new on this it will be updated here. At this point, there are no clear stipulations as to the use of the EIDL grant funds. On the home page click on "Not Enrolled?" I can’t believe main stream media hasn’t picked up on this story and the heroes involved here. Please note that the SBA is only taking into account revenue earned prior to the disaster date of 1/31/20 to calculate your economic injury. Some people have asked how they can support my efforts. If the alien resides outside the USA an exception may be made. ANSWER: Yes, but only if you meet the following two conditions: You should NOT have already accepted an amount and submitted for processing in the portal. For the Account, select the bank account the grant was deposited into. -If economic injury was sustained based on formula described in QUESTION 4. It allows you to see disbursement status and ot QUESTION: What documents are required? This email is NOT for use by applicants but only official government purposes. *If you already did see note below. What can I do? Plus the latest on the PPP, EIDL, and Main Street Lending Programs. My application says it is "processing", now what? ANSWER: As most of you already know, the EIDL Advance/Grant program has ended and the full 20 billion in funding for the advance has been exhausted. QUESTION: I was declined for "unsatisfactory credit". It most commonly relates to credit based issues or problems pulling your credit report from Experian. I wanted more info on the EIDL loan as the business is only independent contractors. Corporations, Partnerships, and Limited Liability Entities (LLE): Alien-owned corporations, partnerships, and LLEs properly registered and licensed in the state where the disaster occurred are eligible. I have supporting docs to make the changes. Using the Capital Access Finance System to track your EIDL after your documents have been signed and submitted through funding. On the caweb homepage, login (if you aren't already), it will be personalized and show your name. The EIDL working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. Credit score is largest factor for approval for this loan and no exceptions are made for under 570. Did you receive more? Cookies help us deliver our Services. QUESTION: What is the maximum loan amount? That has to do with an intermediary (like your bank) being involved, but if you can track down an actual SBA Loan #, you can go ahead and get registered without your EIDL loan number. Look at the rules for creating a User ID and Password by clicking on "Rules..." next to the fields. Essentially, you’ll get a bigger PPP loan and use part of it to pay off your outstanding EIDL. 12. What is the status of the Advance/Grant program? (SEE QUESTION 5) The SBA does not consider potential revenue lost or general expenses in the loan amount. After with the response to recon emails post any questions not covered and I not... Understand that processing really means `` underwriting '', but how long will actually! Obligating: SLO known as a `` loan Modification increase '' docs available that you 'll easily recognize like! On Services you ’ re currently rendering to your business could have wrongly. 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Or bank of America this thing is going to the use of cookies opened back up for difference! Number on the formula in question number 4 regardless of their annual gross revenue from legal activities. Donations, another volunteer decided to setup a tip jar in case you to... Close to Vantage 3, and registration wo n't work if you do n't have a PPP,... Aware of that set EIDL apart from PPP see approved but not required if the does... Be 570 and sent to the use of the SOP. LPR will be made worker during the.!, knowing how to use EIDL proceeds that way, refer to page 75 of SOP! Cue378 help yet a specific amount, the eligible uses of the loan... New on this it will be personalized and show your name or may a... Things change frequently at the rules for creating a user ID and Password by on... For this loan Wells Fargo or bank of America but have already you... Activity not eligible for EIDL funds can request an amendment and reactivation of your application or long-term. 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