From SBA: Create your SBA Economic Injury Disaster Loan Portal Account

Berry mian

Well-Known Member
I ended up not signing my PPP loan documents afraid that I would lose my PUA benefits, I wonder if SBA is any different, I’m still waiting
This is a loan amount that is 70% forgivable if you can prove that you have used that money on business expense!
 

Bostonium

Active Member
  • Thread Starter Thread Starter
  • #7
This. ^
Post automatically merged:

Background: a previous application for Small Business Disaster Assistance, SBDA, was accepted and paid.
This is the unexpected follow up email that prompted the 2nd application.
There is no loan as of yet, just processing. Still a chance for rejection.
Screen Shot 2020-05-23 at 9.35.06 AM.png
 
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E30addixt

Well-Known Member
This. ^
Post automatically merged:

Background: a previous application for Small Business Disaster Assistance, SBDA, was accepted and paid.
This is the unexpected follow up email that prompted the 2nd application.
There is no loan as of yet, just processing. Still a chance for rejection.
View attachment 465831

The $1,000 was the advance on the loan. They qualified you for a $28,900 loan if you sign for it. If you don't want it you can just walk away.

I had my credit pulled and got the $1,000 but no other email yet. I really would like a 30 year loan option at 3.75%.

BTW, from what I've read, amounts over 25K require you to put up collateral. Something else to consider that may complicate things.
 

FreDi Huguenin

Well-Known Member
Getting the loan is simple, obtaining forgiveness is the hard part, SBA just issued some new guidelines, obtaining forgiveness will trigger audits if they see that you could pay your bills with the PUA.
 

E30addixt

Well-Known Member
Getting the loan is simple, obtaining forgiveness is the hard part, SBA just issued some new guidelines, obtaining forgiveness will trigger audits if they see that you could pay your bills with the PUA.
You keep mention PPP and repayment. That is different then the EIDL loan which is what this thread references. You could have applied for both, but if you just applied for the EIDL and not the PPP the restrictions on use are quite different. EIDL is not forgiveable outside of the initial disbursement that can be considered a grant in some cases.
 

FreDi Huguenin

Well-Known Member
You keep mention PPP and repayment. That is different then the EIDL loan which is what this thread references. You could have applied for both, but if you just applied for the EIDL and not the PPP the restrictions on use are quite different. EIDL is not forgiveable outside of the initial disbursement that can be considered a grant in some cases.
I mentioned the (PUA)Pandemic Unemployment Assistance, I already denied PPP because articles were saying I couldn’t double dip, so now I have the same issue with SBA so I want to know if I can get EIDL while still receiving PUA benefits
 

E30addixt

Well-Known Member
It's a loan, not income. You don't have to use It for payroll expenses.

My assumption is the grant part needs to be repaid as part of the balance if you go through with the loan. I don't know for sure though.
 

ubermaster5000

Well-Known Member
I got the loan too but it will take 30 years to pay off (monthly payments) with an interest rate. If you do the math, you will end up paying back a lot more than the initial loan amount thus I am hesitant to accept it.

Between the PUA and the SBA and unemployment, one thing is for sure is that all rideshare drivers will be driving for Uber Black and Lyft Lux once the rideshare industry is back up and running.
 
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ubermaster5000

Well-Known Member
It's a loan, not income. You don't have to use It for payroll expenses.

My assumption is the grant part needs to be repaid as part of the balance if you go through with the loan. I don't know for sure though.
SBA offered me a loan that will take 30 years to repay. What part of it is considered a "grant"?
 

E30addixt

Well-Known Member
SBA offered me a loan that will take 30 years to repay. What part of it is considered a "grant"?
The first $1,000 per employee "can" be a forgiveable grant depending on what you choose to do with either a PPP loan as well or taking out an EIDL loan after the fact.

It doesn't need to take 30 years to pay it off either. There are no pre-payment penalties. The 30 year part gives you low monthly obligations but you can always throw more cash at it and pay it off when you want.
 

scamp

Well-Known Member
I ended up not signing my PPP loan documents afraid that I would lose my PUA benefits, I wonder if SBA is any different, I’m still waiting
PUA and PPP would be considered double-dipping because both are targeted at salary payments. Mass Unemployment townhall specifically cited this.

You can do PUA and EIDL as it covers business expenses.

The EIDL advance is forgiven if you're denied the full EIDL loan process or reject the loan offer.

If you do get the EIDL loan, read the fine print carefully. It can't be used to acquire new assets like a car. It can be used to REPAIR existing assets, like your existing car.

The EIDL loan can only be used for "working capital necessary to carry your concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury" and there are many ineligble uses, including:

  1. Payment of any dividends or bonuses;
  2. Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant;
  3. Repayment of stockholder/principal loans, except when the funds were injected on an interim basis as a result of the disaster and non-repayment would cause undue hardship to the stockholder/principal;
  4. Expansion of facilities or acquisition of fixed assets;
  5. Repair or replacement of physical damages;
  6. Refinancing long term debt;
  7. Paying down (including regular installment payments) or paying off loans provided, or owned by another Federal agency (including SBA) or a Small Business Investment Company licensed under the Small Business Investment Act. Federal Deposit Insurance Corporation (FDIC) is not considered a Federal agency for this purpose;
  8. Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations.
a. If a direct Federal debt is delinquent, your recommendation must be based on independent documentation from the appropriate Federal agency explaining how the delinquency will be cured.
b. If a direct Federal debt is delinquent because of the disaster, we should make arrangements with that Federal creditor to have payments deferred or a similar action taken to bring the delinquency current prior to approval of an EIDL. If the Federal creditor cannot or will not cooperate, the likely result will be a decline of the EIDL request. However, if the applicant has other resources or recoveries, we should generally allow (and perhaps require) those resources to be applied first to ineligible needs, such as the payment of direct Federal debt.
c. When processing during the injury period, it is generally appropriate for you to negotiate with Federal creditors to defer payments (or take similar action) until the end of the injury period. You must document why this was or was not imposed.
9. Pay any penalty resulting from noncompliance with a law, regulation or order of a Federal, state, regional, or local agency.
10. Contractor malfeasance; and
11. Relocation.
If you accept any amounts over $25,000 your business is considered collateral and you can't divest yourself of it without SBA approval. That has quite a few folks on reddit wary of accepting high $$$.

You could slide that $28,000 down to $25,000 and be safer.
 
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