#COVID-19 UPDTD SBA Economic Injury Disaster Loans (EIDL)

Updated 04/14/2020 for SBA clarification

Our whole nation is a declared disaster area. Structures are still standing and the power is on. But the financial fallout is everywhere. An SBA Economic Injury Disaster Loan could provide the necessary working capital to help your business survive until normal operations resume after this pandemic. Substantial economic injury means your business is unable to meet obligations and unable to pay ordinary and necessary operating expenses.

SBA Economic Injury Disaster Loans (EIDL)

Loan amounts are determined by actual economic injury and the financial needs of the business. Repayment terms are determined by your ability to repay the loan.

Managed by: U.S. Small Business Administration

Application period: Open

Eligibility: Fewer than 500 employees; Coops; All nonprofits; AND sole proprietors and independent contractors. Also, ESOPs with fewer than 500 employees, religious organizations, tribal businesses.

Amount: Up to $2 million. This is a loan; it is NOT a grant.
Terms: Up to 3.75% interest for up to 30 years. The first month’s payments are deferred for a full year.

Loan Fees – NONE. Guarantee fees – NONE. Prepayment fees – NONE.
The SBA can approve EIDLs based solely on credit score – not repayment ability.
Tax returns are not required. A prior bankruptcy is not necessarily a disqualifier.
No requirement to disclose that you are unable to obtain credit elsewhere. This means other loans and lines of credit are not necessarily a disqualifier.

STREAMLINED APPLICATION PROCESS         https://covid19relief.sba.gov/#/

We recommend you apply online for the EIDL in order to be eligible for a LOAN ADVANCE. The loan advance will not have to be paid back IF used for paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue loss.  There is 10 Billion $ in the pot – This is a first come, first serve opportunity. To ensure that the greatest number of applicants can receive assistance, the amount of loan advances will be determined by number of pre-disaster employees – as of 01/31/2020. The loan advance will provide $1,000 per employee up to a maximum of $10,000.

Yes, you can still apply for the Paycheck Protection Program in addition to the EIDL. We will have more on this soon.

 CHECK ON EIDL STATUS

To check the status of your EIDL loan application You Need The Application Number from when you applied. Unfortunately, there is no “online check your loan status”.  You have to call or email the SBA Customer Service Center:  By Phone: 1-800-659-2955 (TTY/TDD: 1-800-877-8339);  By Email: disastercustomerservice@sba.gov

We also recommend simultaneously applying for the Florida Small Business Emergency Bridge Loan. Also, make sure your banker discusses other loan options and avenues to quick cash to fund current operations.

We are here to guide you through this process and anything else to help you get through COVID-19. Email info@accpas.com. Please put COVID-19 in the subject line. Or call us at 727-327-1999.  In addition to the monthly newsletter and weekly blog we will be sending COVID-19 updates through “Email Updates”.

Follow McAtee & Associates on your preferred social media for additional COVID-19 updates. We are on Facebook, Twitter, LinkedIn, and Google+.

Stay safe. Stay strong!

COVID-19 Disclaimer. Laws and regulations have quickly changed and will continue to change in order to mitigate the economic damage caused by the Coronavirus Crisis. New laws and regulations are being passed quicker than the legislative process has taken in the past. Guidance, clarifications, and interpretations are constantly evolving. Deadlines and due dates are being extended and re-extended. New relief and programs are constantly rising up. This is occurring on all levels:  Federal, State, and Local. Please keep all this in mind. We are committed to giving you the best answer possible based on what we know at the time your question is asked.

 

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