Updates for small business owners and individuals in Simple Language ** Economic Injury Disaster Loan Emergency Advance Program
Professional Funding Company is in the coronavirus disaster along with other small businesses. #weareallinthistogether. We are working to ensure small business owners get advice and updates that might not be available or readily found by individuals and small business owners. There is a lot of misinformation which further confuses those trying to access emergency coronavirus disaster funds. Our team is working to ensure we assist in getting the information out as we learn it. Here is the latest information and updates we have as of April 13, 2020. This information was given by an Inside SBA associate, if there is any incorrect information we apologize as information changes frequently.
Latest Information from SBA 4/11/2020 via phone to SBA Processing Department. (I want to thank Ben who kindly gave me facts when I informed him I was a business loan consultant. Thank you Ben
Misinformation: Up to $10,000 for all small businesses
New Information: The program allows for $1000 per employee up to $10,000. This does not have to be paid back. This will be processed upon receipt of your EIDL application. There is not a one time $10,000 automatic payment.
The EIDL SBA Information site advises: ” In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available following a successful application. This loan advance will not have to be repaid
The SBA’s Economic Injury Disaster Loan provides vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing as a result of the COVID-19 pandemic.
This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organizations or 501(c)(19) veterans organizations affected by COVID-19.
Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.
UPDATE: This was not made available within days as initially announced. Program has been shut down without many business owners getting any funds.
What happens after I submit my business application?
The SBA has hired a large amount of employees to assist in speeding up the funding process. At this time we can’t state how long the process will take. We applied around March 25, 2020. Up until today our business had received no email updates, requests for information or funds. What we were told via phone today:
If additional information is required the SBA will send an email to the business contact. They advise to check your spam regularly. They also advise to ensure it is the SBA. Any email that you receive about a grant, loan, advance is properly scammers. Any email from the SBA will be from sba.gov. No government entity ever calls for information over the phone. But scammers do and they are working overtime to steal your identity and can imitate Government organizations very well. Do not fall for their scams and remember all government emails and websites will end with .gov. Do not send information unless you receive an email requesting it from the sba.gov site.
UPDATE: This program has been an EPIC failure for small business owners. You can’t check status of application. Call centers can’t check application status.
Question and Answers:
Q: How long will it take to get any funds.
A: As a small business we wish we could answer this question but the magnitude of this disaster has left many business owners without information. So we are taking our experience and information we receive to try and assist business owners. Days ago an individual would have waited hours to speak with an SBA associate if they could even get through. Today we started at the 1675 caller(whos really counting though) and within a short time got through to a very knowledgeable associate who took our phone number in case we got disconnected and advised not to call back but wait if that happens. We were disconnected and received an immediate return call. This is good news. We invested less than an hour from the time of the call to completion.
Q: Do I have to submit any information with my EIDL application.
A: The system will ask questions about gross sales from Jan 31, 2019 to application date compared to Jan. 31, 2020. If SBA needs any information they will email a request.
Q: Can I apply for the EIDL disaster loan/grant and the PPP(Paycheck Protection Program)?
A: Yes. Your business can apply for both. However, you cannot duplicate expenses. The PPP can cover these expenses: Payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made. There is a $100,000 cap per employee. For more detail click on https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
Q: How much can I qualify for?
A: Up to $2 million
Q: Do I have to pay back this loan?
A: The $10,000 for employees is considered a grant. You can get $1000 per employee up to 10. The Working Capital(That we just learned was available) funds $15,000 for 60 days. We do not know the exact details but those funds are supposed to go out immediately to assist businesses in paying expenses to stay in business.
Q: Are these funds limited to small businesses?
A: No, the EIDL is available for all businesses.
Q: Do I have to cash flow or have good credit to qualify for these funds?
A: These programs are for disaster relief. The are not like a regular SBA loan that might require strong cash flow and credit.
If you have any additional questions please contact us at 813-531-0654 or email firstname.lastname@example.org
Information on EIDL direct from benefits.gov:
The Small Business Administration’s (SBA) disaster loans are the primary form of Federal assistance for the repair and rebuilding of non-farm, private sector disaster losses. The disaster loan program is the only form of SBA assistance not limited to small businesses.
The Economic Injury Disaster Loan Program (EIDL) can provide up to $2 million of financial assistance (actual loan amounts are based on amount of economic injury) to small businesses or private, non-profit organizations that suffer substantial economic injury as a result of the declared disaster, regardless of whether the applicant sustained physical damage.
An EIDL can help you meet necessary financial obligations that your business or private, non-profit organization could have met had the disaster not occurred. It provides relief from economic injury caused directly by the disaster and permits you to maintain a reasonable working capital position during the period affected by the disaster. EIDLs do not replace lost sales or revenue.
To be eligible for EIDL assistance, small businesses or private non-profit organizations must have sustained economic injury and be located in a disaster declared county or contiguous county.Check if you may be eligible for this benefit(Since this publishing all 50 states have been declared Disaster Zones)
The SBA can provide up to $2 million in disaster assistance to a business. The $2 million loan cap includes both physical disaster loans and EIDLs. There are no upfront fees or early payment penalties charged by SBA. The repayment term will be determined by your ability to repay the loan.
Apply online for disaster loan assistance at your own convenience through SBA’s secure Disaster Loan Assistance website.
For application information, please call 1-800-659-2955 or email DisasterCustomerService@sba.gov.
For more information about this program, please visit the Economic Injury Disaster Loan page.