What is the EIDL Loan?
The Economic Injury Disaster Loan (EIDL) is a (super) low-interest, fixed rate, long-term loan to help overcome the effects of the pandemic by providing working capital to meet operating expenses.
What is the EIDL Grant?
The EIDL Advance is a grant of up to $15,000 given by the SBA for qualifying businesses. In order to qualify, your business address must be located in a Low-Income Census area. You can check your eligibility by entering your business address here: https://sbaeidl.policymap.com/newmaps
Can I accept only the grant?
Yes, if you qualify, you may accept just the EIDL Advance Grant. Even if your application is rejected for the loan portion, you may be able to claim the EIDL Advance.
What can I use the funds for?
Normal operating expenses and working capital. The funds should be used for anything business related.
What is the most I can receive?
$500,000 is the loan cap for the EIDL program. In order to receive the full $500K, your business had to have at least $250K in annual revenue & good creditor payment history.
What are the Loan Terms?
You have 30 years to pay back the loan. It has a fixed interest rate of 3.75% annually (the best possible deal for a loan of this size). NO PAYMENTS for 18 months. For this reason, we always advise our clients to take the EIDL even if they may not need the money right now; the future is uncertain. If a client doesn’t end up using the money, they can pay it right back within 18 months.
When do I start making payments?
Payments can be deferred for 18 months for loans made in 2021. No penalty for prepayment.
What are the fees?
Our partners have a 10% fee for processing EIDL applications. This amount is not due until after the EIDL is funded. There is NO UPFRONT fee.
CoinCare’s partner (LendersAccess) is a licensed California lender & broker; they will be using the info you provide on the next page in order to submit the perfect EIDL application & speed up the funding process.
There is also a $100 SBA Filing Fee for loans over $25,000.
Do I have to provide collateral for the EIDL?
Collateral is required for loans greater than $25,000. Personal Guaranty Required for loans greater than $200,000.
Do I have to give a personal guaranty?
Personal Guaranty Required for loans greater than $200,000. This means you accept personal responsibility in paying back your EIDL loan, whereas amounts below $200,000 would only be linked to the business entity if you apply as an LLC.
What are the requirements?
- The owner(s) of the business must have a 570 or higher credit score
- The business must have been in existence since before January 31, 2020
- The business has been affected COVID (no specific criteria here)
- You can provide all bank statements from Feb 2020 – July 2021. This is optional, but good to have on hand.
- You filed your 2019 tax returns (REQUIRED) – You filed your 2020 tax returns (preferable – will speed up the verification process)
- You file a 1040 Schedule C, an 1120 or 1065
Can I apply for COVID EIDL funds to start a business?
No, your business must have been in operation or have evidence of investment to operate on or before January 31, 2020.
Am I eligible if I received assistance through PPP, RRF, SVOG, or other relief through SBA?
Yes, other assistance received through SBA will not impact your eligibility or loan amount, as long as the other assistance did not fully compensate your economic injury.
What documents do I need to apply?
- 2019 Federal Income Taxes for the applicant business (required)
- 2020 Federal Income Taxes for the applicant business (if available)
- IRS Form 4506-T (You will complete this online when you apply)
- All bank statements from Feb. 2020 to Date
- Photos of ID (front + back)
- Photo of Voided Check
How much can I get?
Formula: Line 7 of Schedule C (Gross Revenue minus Cost of Goods Sold) multiplied by 2. For example, if a business reported a gross income of $100,000 in their 2019 tax return, they may be eligible to receive up to $200,000 in EIDL relief. Since $200,000 is a significant amount, the SBA will require collateral to be put up & also a personal guaranty.
The applicant can always accept a lower amount than what they are approved for.
What can I do to speed up the processing time of my application?
You can reduce the total time it takes for your application to be reviewed by responding quickly to SBA requests for applicant information, signatures, and approvals. This allows the review team to move your application through each processing step faster.