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HOT TOPIC [COVID-19] Forgiveable SBA Loans For Small Biz and Freelancers

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biophase

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I applied for the EIDL on the website when I first heard about it, and nothing has happened since then. The website didn't ask for bank info so there's no way they can distribute it. I don't know what steps are supposed to happen, and I doubt they're going to reach out to me.

I'll check Credit Karma.

If you applied for the EIDL application super early you probably got the application where you had to attach a bunch of forms onto it. On March 28, they changed the website and it was a simple 3 page online form and you had to add your banking information at the end of it.

Which one did you fill out?
 

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Ronak

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My credit check was 2 or 3 days ago as well. I thought the EDIL was based on the number of full time employees you had in 2019. Mine is 3 and I received 3K so it makes sense.

Yes, that's the advance/grant portion that doesn't have to be paid back. The actual EIDL (I keep on calling it EDIL) loan itself is supposed to replace lost revenue and does have to be paid back, but over a 30 year term.
 

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Applied the first day the SBA.gov site came out with the simplified online form (believe it was at the end of March), but still haven't heard anything back yet/received any money yet. I know I was a few days late so maybe the funds ran out before they could get to me.

Seems like it'll only be $1,000 for me anyway (just myself as the 1 employee for my LLC)... should I take any proactive actions or hopefully once Congress approves the next rounds of funding I could expect to get the payment then? I've seen posts about speaking with various banks, but I didn't apply through any specific bank but just the general SBA site.
 

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I applied for the EIDL on the website when I first heard about it, and nothing has happened since then. The website didn't ask for bank info so there's no way they can distribute it. I don't know what steps are supposed to happen, and I doubt they're going to reach out to me.

I'll check Credit Karma.

You definitely should have entered your bank info for the EIDL... Did you apply on the online portal or the long form documents prior to 3/29?
 

garyfritz

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You definitely should have entered your bank info for the EIDL... Did you apply on the online portal or the long form documents prior to 3/29?
Short form on the portal on 3/31. I don't *remember* providing bank info ...

Seems like it'll only be $1,000 for me anyway (just myself as the 1 employee for my LLC)...
Yeah me too. I was hoping for the $10k because I already have $5k in lost profits directly caused by COVID travel restrictions, and I also have upcoming lost revenue because of it. But if it's just $1000 per employee (me) ...
 

CoachR

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Short form on the portal on 3/31. I don't *remember* providing bank info ...


Yeah me too. I was hoping for the $10k because I already have $5k in lost profits directly caused by COVID travel restrictions, and I also have upcoming lost revenue because of it. But if it's just $1000 per employee (me) ...

Supposedly they signed a new one today. More money going out and will run out just as quick as the first I imagine.
 

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Got an email this morning with next steps for the loan portion of the EIDL. They quoted for $15,500 at 3.75% over 30 years.

SBA.PNG

The second page had a bar (I forgot to screen capture) that lets you adjust the loan amount (only adjust downward) if you don't need the total.

Identity verification was nothing. It was four questions like: "Which of these numbers is associated with an address you've lived at?" with multiple-choice responses.

After that, I clicked submit and it went on its way for processing.
 

Ronak

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Finally had EIDL approved yesterday.

After reading through the loan agreement a few times, I'm weary of going through with it. There are a whole bunch of restrictions on how funds can be used, lots of ambiguity, record keeping hassles, and what looks like a personal guarantee, even though it was not supposed to be there according to other SBA sources. Six figures is a lot of money, but I am seriously reconsidering taking it.
 

pmaloneus

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Got an email this morning with next steps for the loan portion of the EIDL. They quoted for $15,500 at 3.75% over 30 years.

View attachment 32831

The second page had a bar (I forgot to screen capture) that lets you adjust the loan amount (only adjust downward) if you don't need the total.

Identity verification was nothing. It was four questions like: "Which of these numbers is associated with an address you've lived at?" with multiple-choice responses.

After that, I clicked submit and it went on its way for processing.

Have you heard back yet? If so, how long did it take?
 

ecommercewolf

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Got an email this morning with next steps for the loan portion of the EIDL. They quoted for $15,500 at 3.75% over 30 years.

View attachment 32831

The second page had a bar (I forgot to screen capture) that lets you adjust the loan amount (only adjust downward) if you don't need the total.

Identity verification was nothing. It was four questions like: "Which of these numbers is associated with an address you've lived at?" with multiple-choice responses.

After that, I clicked submit and it went on its way for processing.

Just got mine today as well. Need to go through the fine print and see if it's worth it for me.
 

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pmaloneus

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Just got approved, took about 3 days from processing to approved. Appreciate the insights this thread provided.
 

Gidoza45

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Finally had EIDL approved yesterday.

After reading through the loan agreement a few times, I'm weary of going through with it. There are a whole bunch of restrictions on how funds can be used, lots of ambiguity, record keeping hassles, and what looks like a personal guarantee, even though it was not supposed to be there according to other SBA sources. Six figures is a lot of money, but I am seriously reconsidering taking it.
Did you end up going through with it and getting the loan?
 

Ronak

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Still on the fence...

Bit the bullet and took the money. I am sure it will come in handy. I was surprised how fast the money was transferred after I signed the note, literally the next business day.
 

AndreaHemming

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Just a heads up, the stimulus bill includes $10 billion in grant money and loans to small businesses and self-employers.

If I read it correctly, you can get a $10k min GRANT even if you’re denied for the SBA loan.

The SBA loans max out at $10 million I think, and are FORGIVEABLE when spent on payroll or utilities.

YES, THIS IS BASICALLY FREE MONEY FOR YOUR BUSINESS.

As far as I know it’s first come first serve so hop to it:


HOW TO APPLY:
Are you sure about this? It seems to me that this is not really true
 

garyfritz

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Hi all ... been out of touch for a while but I need to figure out this SBA loan. I applied for a $20k loan (since the pandemic directly cost me well over $20k just last summer), even though I wasn't strapped for cash. I was hoping to pick up on the "forgiven grant/loan" benefit.

Well they started sending me statements, and it was clear the interest on the $20k was piling up. Given that I wasn't using the money, it didn't make sense to keep adding to the interest, so I paid off $18k of the loan. Still hoping they would forgive the remainder. Well all I've gotten since then is statements for how much I still owe, and how much interest is still accruing on the $2k. Not a word about forgiving the remaining amount.

Is the grant still for real? Is there any point in holding this open, or should I just pay it off?
 

SteveO

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Hi all ... been out of touch for a while but I need to figure out this SBA loan. I applied for a $20k loan (since the pandemic directly cost me well over $20k just last summer), even though I wasn't strapped for cash. I was hoping to pick up on the "forgiven grant/loan" benefit.

Well they started sending me statements, and it was clear the interest on the $20k was piling up. Given that I wasn't using the money, it didn't make sense to keep adding to the interest, so I paid off $18k of the loan. Still hoping they would forgive the remainder. Well all I've gotten since then is statements for how much I still owe, and how much interest is still accruing on the $2k. Not a word about forgiving the remaining amount.

Is the grant still for real? Is there any point in holding this open, or should I just pay it off?
Ppp?
 

SteveO

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Hi all ... been out of touch for a while but I need to figure out this SBA loan. I applied for a $20k loan (since the pandemic directly cost me well over $20k just last summer), even though I wasn't strapped for cash. I was hoping to pick up on the "forgiven grant/loan" benefit.

Well they started sending me statements, and it was clear the interest on the $20k was piling up. Given that I wasn't using the money, it didn't make sense to keep adding to the interest, so I paid off $18k of the loan. Still hoping they would forgive the remainder. Well all I've gotten since then is statements for how much I still owe, and how much interest is still accruing on the $2k. Not a word about forgiving the remaining amount.

Is the grant still for real? Is there any point in holding this open, or should I just pay it off?
We got 140k loan. Sent in all the information and 136k was forgiven.
 

garyfritz

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No, my paperwork doesn't say, but pretty sure it was EIDL.

I haven't seen anything that says "send in this information and it'll get forgiven." Where did you find it? Hardly worth it for $2k but I might as well give it a try.

As I understand it, they changed the rules to say they'd only forgive $1k per employee. Since I am my only employee, that kinda limits things.

The stuff I see online basically says "you don't have to get it forgiven, you just don't have to pay it back." I can't see that working. The statements the SBA sends out say payments will be due starting 6/4/21.
 

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BizyDad

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No, my paperwork doesn't say, but pretty sure it was EIDL.

I haven't seen anything that says "send in this information and it'll get forgiven." Where did you find it? Hardly worth it for $2k but I might as well give it a try.

As I understand it, they changed the rules to say they'd only forgive $1k per employee. Since I am my only employee, that kinda limits things.

The stuff I see online basically says "you don't have to get it forgiven, you just don't have to pay it back." I can't see that working. The statements the SBA sends out say payments will be due starting 6/4/21.
The EIDL advances were issued as grants. I got mine direct deposited, no loan statements, no forgiveness. Just cash in my account, 1k per employee.

I think perhaps you requested more than the grantable amount, so that sounds like a loan you'll need to pay back.

Don't take my word for it. Have you spoken with your banker about it? Or whoever helped you apply/process the loan?
 

garyfritz

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The EIDL advances were issued as grants. I got mine direct deposited, no loan statements, no forgiveness. Just cash in my account, 1k per employee.

I think perhaps you requested more than the grantable amount, so that sounds like a loan you'll need to pay back.
I requested more than $1k per employee because I suffered way more losses than that. Plus I applied before they reduced it to $1k per employee.

They don't seem to be treating it as a grant, because it started accruing interest on Day 1, and every month they send a statement reminding me I will have to pay it back starting on 6/4/21. And the amount they say I owe is the full loan amount + interest. No sign of a forgiven portion.

I should probably just pay back the full $2000 + interest I still owe. Really feels like a bait-and-switch though.

Don't take my word for it. Have you spoken with your banker about it? Or whoever helped you apply/process the loan?
No one helped me. I followed the instructions on the website. Banker was not involved. I filled out the form on the website, and about 2 months later the money magically appeared.
 

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I requested more than $1k per employee because I suffered way more losses than that. Plus I applied before they reduced it to $1k per employee.

They don't seem to be treating it as a grant, because it started accruing interest on Day 1, and every month they send a statement reminding me I will have to pay it back starting on 6/4/21. And the amount they say I owe is the full loan amount + interest. No sign of a forgiven portion.

I should probably just pay back the full $2000 + interest I still owe. Really feels like a bait-and-switch though.


No one helped me. I followed the instructions on the website. Banker was not involved. I filled out the form on the website, and about 2 months later the money magically appeared.
There were two main funding programs as part of the CARES Act: PPP and EIDL.

PPP was a forgivable loan to cover payroll and mortgage/rent/utilities (business). This was calculated at 2.5x monthly payroll from the previous year.
Funds from the PPP that were used for payroll were forgiven.
In the "second" stimulus at the end of December, they expanded the approved expenses and opened a second-round PPP.
All of the above points are subject to a host of thresholds and qualifications. They've also changed the rules several times since they came out.

The EIDL was/is a loan. However, there was a grant portion as well, which was $1k per employee up to $10k. The grant portion was forgivable even if you ultimately didn't take the loan. The remainder of the loan was not forgivable.
 

biophase

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I requested more than $1k per employee because I suffered way more losses than that. Plus I applied before they reduced it to $1k per employee.

They don't seem to be treating it as a grant, because it started accruing interest on Day 1, and every month they send a statement reminding me I will have to pay it back starting on 6/4/21. And the amount they say I owe is the full loan amount + interest. No sign of a forgiven portion.

I should probably just pay back the full $2000 + interest I still owe. Really feels like a bait-and-switch though.


No one helped me. I followed the instructions on the website. Banker was not involved. I filled out the form on the website, and about 2 months later the money magically appeared.
You need to figure out what you got. It’s either a PPP or EIDL.

Sounds like you got an EIDL. Not sure about the grant part. Did you just get one deposit, all at once. I think most of us got the $1k grant first and then the loan later on.
 

garyfritz

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You need to figure out what you got. It’s either a PPP or EIDL.
I'm pretty sure it was an EIDL. It was paid in one chunk, direct-deposited to my bank on 6/9/20. The deposit says it's from "MISC PAY SBAD TREAS."

So how do I benefit from the grant? I paid back $18k of my $20k loan, and the statement says I still owe $2156.16. The paperwork doesn't say anything about a grant.
 

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