Requests for COVID-19 EIDL loan increases or requests for reconsideration of previously rejected loan applications are no longer being processed by SBA.
We acknowledge that both your company and the country have faced difficulties lately. Local SBA offices in your area might direct you to sources that might be able to help your company in various ways.
You can look up the email address and phone number of the closest SBA district office and/or SBA resource partner to learn more about these services. For an appointment, kindly phone or email.
ALL COVID EIDL BORROWERS – DOWNLOAD LOAN DOCUMENTS BY MAY 16
Your access to the RAPID COVID EIDL portal ends on May 16, 2022.
To avoid a delay or cancellation of your pending raise request, please respond to all demands for paperwork or signatures by May 16, 2022. Download a copy of your loan paperwork from the RAPID COVID EIDL Portal for your records:
SBA EIDL LOAN
MONTHLY PAYMENT – SET YOUR REMINDER
Beginning 30 months after the disbursement date indicated at the top of the front page of your Original Note, you are liable for your COVID EIDL monthly payment requirement. During this postponement
- By choosing “Make an SBA 1201 Borrower Payment,” you can pay voluntarily and without incurring penalties for early repayment.
- Throughout the postponement, interest will continue to collect on your debt
- At loan maturity, a final balloon payment is required if you have not made any voluntary payments throughout the deferment period
Before the deferred first payment is due, SBA will give clear instructions on how to begin repayment.
Economic Injury Disaster Loans
An SBA Economic Injury Disaster Loan may be available to small enterprises, small agricultural cooperatives, and the majority of private nonprofit organizations that are situated in a declared disaster area and have sustained significant economic harm (EIDL).
Find out more about a program if you’ve been affected by the COVID-19 pandemic. COVID-19 Economic Injury Disaster Loan (EIDL).
You may qualify for an SBA EIDL if you fall under one of the following categories of firms operating in a region that has been declared a disaster area and have sustained a significant economic injury:
- Small business
- Small agricultural cooperative
- Most private nonprofit organizations
- Substantial economic injury means the business is unable to meet its obligations and pay its ordinary and necessary operating expenses.
- EIDL provides the necessary working capital to help small businesses impacted by a disaster survive until normal operations resume.
- EIDL assistance is available only to small businesses when SBA determines they are unable to obtain credit elsewhere.
To assist with meeting financial obligations and operating costs that might have been covered had the tragedy not occurred, SBA can offer up to $2 million* in funding. Regardless of whether the company sustained property damage, the loan amount will be determined by your actual economic damages and the financial demands of your organization.
*A business may qualify for, both, an EIDL and a physical disaster loan.
The total sum of all loans cannot exceed $2 million. Property damage is covered by a different SBA disaster assistance program called business physical disaster loans.
- Required for loans over $25,000
- Real estate is the preferred collateral. Loans of $200,000 or less will not require the owner of the business to use their primary residence as collateral if it is determined the owner has other assets of equal quality and a value equal to or greater than the amount of the loan
How to Apply
- Apply online for an SBA disaster assistance loan. SBA will send an inspector to estimate the cost of damage, once your application is completed and submitted.
- Complete, sign, and date IRS Form 4506-T with your application, giving permission for the IRS to provide SBA with your tax return information.
SBA Loan Application
An SBA loan can also be obtained for working capital, the purchase of new equipment, the refinancing of business debt, including debt secured by real estate, the purchase of the real estate, and business acquisition.
We shrink the typical SBA lending process from months down to weeks. SBA loans offer longer terms, lower rates, and lower monthly payments than other loan options.
What are the income requirements for an SBA loan?
Businesses that are eligible for an SBA loan typically have a yearly revenue range of $50,000 to $5 million and 1 to 40 workers. Most of our companies are profitable and have positive cash flow. Everyone can demonstrate their ability to pay back our loan on a monthly basis.
Who is eligible for an SBA Loan?
Numerous small businesses, including accounting firms, internet retailers, and hair salons, qualify for SBA loans. Although there are few exclusions, most sectors are eligible. The following are some prerequisites:
· Minimum 2 years in business
· U.S.-based business owned by US citizen or Lawful Permanent Resident who is at least 21 years old
· Good personal credit score
· No outstanding tax liens
· No bankruptcies & foreclosures in the past 3 years
· No recent charge-offs or settlements
· No criminal record other than minor vehicle violations
· Current on government-related loans
I’ve been turned down by my bank before. Can I still get an SBA loan?
Yes. Even after they were turned down by other banks, we assisted numerous small businesses in getting an SBA loan.
Can I get a second SBA loan?
Yes, a lot of clients receive a second SBA loan as their company expands and needs more funding. For the purpose of calculating the amount of the SBA guarantee fees, if any, the loans will be treated as one loan if they are approved for more than one SBA loan within 90 days of one another.
Will Eidl be forgiven in the future?
EIDL debt cannot be discharged. But there is a grace period for deferring EIDL loans. Any EIDL loan granted in 2020, 2021, or 2022 may have its repayment postponed for up to 30 months after the note’s issue date. While not essential, payments can be made in full or in part throughout this period.
Will there be another EIDL loan?
No new applications, requests for increases, or reconsiderations are being accepted for the COVID-19 EIDL program. SBA ceased taking new COVID-19 EIDL loans or advance requests on January 1, 2022.
Contact the SBA Disaster Assistance Customer Service Center at:
Email: [email protected]
Also Read: Why SBA 7(a) Loans are most popular, What is the SBA 504 loan program
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