One measure expanded the EIDL program, overseen by the Small Business Administration, by giving a loan advance of up to $10,000 to small-business owners. EIDL loans go up to $2 million. Additional limitations exist if you have also received a PPP loan, as the SBA guidelines state that PPP  and EIDL disbursements cannot be used for the same purpose. HERE ARE OTHERS YOU MIGHT LIKE. This program has traditionally been utilized by small businesses impacted by natural disasters such as hurricanes, tornadoes or widespread fires. Evidence of Hazard Insurance (NOT Homeowners or Liability Insurance), which must include: Business Name or Name of the Applicant as indicated on the loan application. Proof of Hazard insurance is due within 1 year of loan disbursement. We are continually staying on top of the release of information and will provide updates if necessary. I received this email and a phone call regarding proof of hazard Insurance for my EIDL loan. The CARES Act requires that you apply to your lender for … 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. During this time, a loan officer may ask you for more information and next steps. Businesses with 500 or fewer employees 2. Borrower will not cancel such coverage and will maintain such coverage throughout the entire term of this Loan. You should consult your own attorney and insurance agent to make sure that you meet these requirements. Economic Injury Disaster Loan (EIDL) Documents the SBA Requires, The Certificate of Business document is due, A copy of the declaration page, provided it lists the above, is sufficient documentation. EIDL proceeds can be used for general operating expenses for your business. The SBA website says all emails will be in the form of sba.gov and this email was exactly that. This makes it an attractive option for small businesses to have access to additional liquidity and reduce the cash flow burden as they begin to rebuild their business. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. Ensure you are keeping clean records and receipts in the event you need to provide this documentation to the SBA. However, under the CARES act, the EIDL can be approved by the SBA based on just a credit score alone. The CARES Act expands the EIDL program to meet the financial needs of struggling small business owners impacted by the … Work with your CWA advisor if you have additional questions on the applicability of the EIDL program or the use of EIDL proceeds as it relates to your financial situation. According to JD Supra, the total timeline for the EIDL is typically 18 to 21 days to get approval after the application is made, followed by another five days to get funding. Sole proprietors 4. SBA guidance on these topics is limited and additional clarifying guidance is expected to be released soon. The EIDL carries a 3.75% interest rate (2.75% for non-profits) which … Over the past few months, attention has been focused on understanding and obtaining the Small Business Administration (SBA) Paycheck Protection Program (PPP) loan, due to its forgiveness potential if used appropriately. However, another CARES Act stimulus program business owners have access to is the Economic Injury Disaster Loans (EIDL). Approval by Loan Officer Stage: a Tier 2 representative will be able to see that whether the loan application is approved on their screen. SBA is currently accepting new Economic Injury Disaster Loan (EIDL) applications from all qualified small businesses, including agricultural businesses, and private nonprofit organizations. EIDL loans are 30-year loans with an interest rate of 3.75%. Typically, a decision is made within 21 days of application, and disbursement of money within five business days. Cain Watters only conducts business in states where it is properly registered or is excluded from registration requirements. The Hazard Insurance document is due, If you have found value in the federal stimulus updates and feel compelled to, I would appreciate you leaving a 5 star Google review. Applicants don't have to repay the advance. Per your Small Business Administration Loan Authorization & Agreement Documents for your EIDL loan, please provide the following documents: Resolution of Board of Directors/Certificate of LLC/LLP, a document generated by your company, which must indicate: Name of Business and loan application number. Repayment terms on the loans are over a 30-year term at 3.75%. Cain Watters is a Registered Investment Advisor. Specific date the members of the company met to discuss the EIDL. By now you’ve probably heard about the strict requirements surrounding the spending of Paycheck Protection Program money if you want your loan forgiven. If you have already applied via the streamlined application portal, please do not resubmit your application. It seems as though you must still meet the low income community, 30% revenue reduction requirements, and have received an EIDL advance before. As a reminder, the recommendations presented in this blog are based on what we know now. https://www.cainwatters.com/digitalblogs/how-to-use-eidl-funds As your practice continues to ramp up and increase collections over time, the two loans can be used to cover overhead costs, which would allow the ability to build up additional cash flow in the practice and potentially pay down existing debt. Signed by managing members of your business. Small businesses are subject to a 3.75% interest rate, while nonprofits have a 2.75% interest rate. The following expenses are not eligible uses of the EIDL loan: Dividends and bonuses; Disbursements to owners, except when directly related to performance of services; Repayment of stockholder/ principal loans; Expansion of facilities or acquisition of fixed assets For Updates on COVID-19 head to our Financial EDGe blog. The Certificate of Business document is due within 6 months of your loan disbursement date. COVID Loan Tracker was founded by small business owners to help fellow entrepreneurs understand when their PPP and EIDL loans will be paid. A federal judge ordered the Small Business Administration (SBA) on Thursday to release by Nov. 19 the names of all Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) borrowers and precise loan amounts. The eight-week period begins on the date the lender makes the first disbursement of the PPP loan to the borrower. Businesses are divided into two categories: severely impacted and substantially impacted. Answer: SBA’s Economic Injury Disaster Loans are just one piece of the expanded focus of the federal government’s coordinated response, and the SBA is strongly committed to providing the most effective and customer-focused response possible. Businesses with fewer than 500 employees, certain nonprofits, and agricultural businesses can apply and be approved if they meet all criteria set by the SBA. If the Senior Loan Officer does not approve your EIDL loan application then it will be declined. Schedule a complimentary consultation with a member of our team. This could include purchases of supplies, including personal protective equipment (PPE), lab expenses, advertising, regular loan principal payments and other fixed expenses. LIKE THIS ARTICLE? Website by CreativeMktGroup. In general, all of the following entities that have suffered substantial economic injury caused by a disaster provided they were in existence on January 31, 2020: 1. PPP loans typically appear as "Active Un-Disbursed" - if your PPP is already funded don't worry about that. EDGe Business Planning・2304A West Main Street Richmond, VA・866.334.3270・hello@edgebusinessplanning.com. Statement that the members agree to accept the EIDL in the amount indicated on the loan documents. Check with SBA disaster customer service if you have a question about the status of your loan.. EIDL Advance FAQ; Paycheck Protection Program FAQ; COVID-19 FAQ; What is an Economic Injury Disaster Loan? Chinese Owned Entities Are Ineligible For a Second Draw PPP Loan. In addition, the loan contains a 12-month payment deferral beginning on the loan date. I have also attached a Resolution of Board of Directors document provided by the SBA. This should take you to your "Loan List" showing the loan #, borrower name, loan type, amount, and loan status. EIDL payments are deferred for 1 year after the disbursement of the loan, although you may start paying on your loan earlier than this. EDGe supports businesses with all aspects of finance and accounting including strategy, budgeting, forecasting, cash flow management, financing, and operational efficiency. If you qualify for and received a Targeted EIDL … Bookmark the COVID-19 Resources Page for the latest. Below are more specifics from the SBA on how to satisfy each of these requirements. How much can I get from EIDL? If you have found value in the federal stimulus updates and feel compelled to, I would appreciate you leaving a 5 star Google review. Diversification does not ensure a profit and may not protect against loss in declining markets. Once the documents are signed, an initial disbursement of $25,000 is made within 5 days. You may initially contact our Processing and Disbursement Center to report suspected fraud. A copy of the declaration page, provided it lists the above, is sufficient documentation. Past performance is not an indicator of future results. For the Emergency EIDL (cash advance grant), upon the successful application, the … loan proceeds must be used only for eligible payroll costs and certain eligible nonpayroll costs as set forth in program guidance . However, many businesses are still in the dark about how they can (and can’t) spend the Small Business Administration’s (SBA) Economic Injury Disaster Loans (commonly referred to as EIDL). Reporting Fraud. EIDL funds cannot be used for physical repairs, expansion of physical facilities, acquisition of fixed assets, bonuses, owner distributions (non-performance related) or refinancing existing debt. At this point, there are no clear stipulations as to the use of the EIDL grant funds. Long before the coronavirus business interruption, the EIDL program was providing financial support to small businesses and private non-profit organizations that encountered certain declared disasters. Wait. Terms go up to 30 years. Paycheck Protection Program. It is recommend that you utilize the PPP loan first for qualified expenses and then the EIDL loan to supplement and pay for general operating expenses. Still looking for an advisor that focuses on the business side of dentistry? ECONOMIC INJURY DISASTER LOANS. This is the wording directly from the SBA EIDL documents: Borrower shall, within 180 days of receiving any disbursement of this Loan, submit the appropriate SBA Certificate and/or Resolution to the U.S. Small Business Administration, Office of … The EIDL program is an excellent way for business owners to obtain liquidity and have some cash flow flexibility during an uncertain time. The Hazard Insurance document is due within 1 year of your loan disbursement date. Business Address as indicated on the loan application. 1. These loans offer low, fixed rates and repayment terms up to 30 years. Independent contractors 5. Please, EDGe Business Planning・2304A West Main Street Richmond, VA・. The . Borrowers are prohibited from selling, transferring, or attaching future liens on the current collateral/assets such as equipment. Interest does accrue on … SBA offers loans with reasonable terms, including long-term repayments (up to a maximum The COVID-19 EIDL includes an automatic one-year deferral on repayment, though interest begins to accrue when the loan is disbursed. Request Form ADV Part 2A for a complete description of Cain Watters investment advisory services. Within 12 months from the date of this Loan Authorization and Agreement the Borrower will provide proof of an active and in effect hazard insurance policy including fire, lightning, and extended coverage on all items used to secure this loan to at least 80% of the insurable value. Proof of Hazard insurance is due within 1 year of loan disbursement. © 2020 EDGe Business Planning. Covers collateral of 80% of the insurable value of the business content (not including land or buildings). Borrowers are assigned individual loan officers for servicing the loan. Similar to the PPP, documentation and support for the use of EIDL funds is essential. 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