The 7(b) loans provide up to $2 million in assistance with an interest rate of 3.75% for-profit companies and an interest rate of 2.75% for non-profits. The loan terms range up to 30 years, and there are no early payment penalties.
Loans for any business that is affected by COVID-19, has less than 500 employees and was in operation before February 1, 2020, is eligible to apply.
Those interested in applying, must apply before December 31, 2020
1. How do I contact someone to go over an issue I am having with EIDL?
SBA’s Customer Service Center representatives are available 7 days/week from 8am to 8pm at 800-659-2955 or email firstname.lastname@example.org. Once you reach a first level representative, you may request a “TIER 2” representative to look in the system for status.
2 . How do I get a status update on my EIDL loan / Advance if I applied early and did everything right and still have not heard back?
If you are looking for information on the status of an EIDL loan or advance, please call customer service at 1-800-659-2955 (TTY: 1-800-877-8339) or email email@example.com. Please note that it could take more than a month to process your EIDL application.
3. We are a small family owned hotel and applied for EIDL in hopes to receive the maximum of $2M; Is that still possible?
SBA had to make a difficult decision to limit loan amounts to ensure the program reaches as many small businesses as possible. Historically, the maximum amount of EIDL assistance is 2 million dollars. During these unprecedented times and given our current funding levels we do not expect a loan amount to reach $2 million.
4. Are there as strict parameters with the EIDL as there are with PPP? For example, can I use the EIDL to pay my business credit card balance?
The Economic Injury Disaster Loan (EIDLs) funds are for working capital to pay the ordinary and necessary debts and obligations as if the business were not impacted by the disaster. Funds cannot be used to expand or improve the business or refinance existing debt. However if credit cards were used for working capital needs on an emergency basis (similar to obtaining an emergency or bridge loan), they can use the EIDL proceeds to pay the portion of the credit card that was used for emergency purposes as a result of the disaster.
5. Are there certain things that should be paid with the economic injury loan?
EIDL program loan proceeds may be used as working capital to pay for expenses, such as payroll, accounts payable, rent, mortgage, vehicle leases, and other bills that would have been able to be paid if not for the COVID-19 disaster.
6. We have received acknowledgement but no indication as to whether, when or how much funding we may receive. How does this process work?
While your loan is in the processing queue you will receive an invitation to go into the portal. You will see a loan proposal amount. This is for you to indicate whether you accept this amount, want less or decline the loan amount. You cannot request an increase unfortunately. The proposal is not an approval. The loan is not approved until the loan officer processes the application and requests that you come to the portal to sign loan closing documents.
7. Is collateral taken for EIDL/Advance? Collateral is only taken for loans in excess of $25,000. There is not real estate collateral required. A blanket UCC-1 will be filed against non-real estate business assets.
8.If e received a denial for EIDL how can I dispute the denial?
To request reconsideration for the Emergency Advance funds, subject to the availability of funds. You/your borrower can submit your request to any of the following: Mail your request to U.S. Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155 Fax your request to: 202-481-5931 or E-mail your request to: firstname.lastname@example.org. Your request must: Be in writing and be received by this office as soon as possible. Contain all significant information that will overcome the decline/withdrawal reason(s).
9. Can the EIDL money be put into an interest-bearing account?
The Treasury can deposit the disbursements to business checking or savings accounts.
10. Does EIDL interest start accruing immediately or is that delayed for the year as well?
EIDL interest accrues when the funds are disbursed to the borrower. The accrued interest will be added on to the remaining term of payments after the 12-month deferral.