The world’s central banks have unleashed the steepest series of interest-rate increases in decades during their two-year drive to tame inflation—and they may not be done yet. Policymakers have raised rates by about 400 basis points on average in advanced economies since late 2021, and around 650 basis points in emerging market economies.
Most economies are absorbing this aggressive policy tightening, showing resilience over the past year, but core inflation remains elevated in several of them, especially the United States and parts of Europe. Major central banks therefore may need to keep interest rates higher for longer.
Recent Blog Posts
February 27, 2024
SBA Economic Injury Disaster Loan (EIDL)
The 7(b) loans provide up to $500,000 per entity 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.
Payments start 12 -18 months after the date of the contract
Funds can be used to business expenses such as pay sick leave for employees who are unable to work due to a direct effect of COVID-19, payroll, materials, rent or mortgage payments, repaying outstanding obligations
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, 2021
Emergency Targeted Advance up to $10,000
There is no requirement to repay the advance even if your business is denied the 7(b) loan
Businesses can get up to $10,000.
Funds can be used to pay business expenses such as pay sick leave for employees who are unable to work due to a direct effect of COVID-19, payroll, materials, rent or mortgage payments, repaying outstanding obligations
FREQUENTLY ASKED QUESTIONS
Economic Injury Disaster Loan Program (EIDL)
1. How do I contact someone to go over an issue I am having with EIDL?
YM Ventures specializes in assisting clients with SBA Loans and the EIDL program. You can call us to discuss the issue you are having and a loan specialist will advise on the proper steps to get your loan approved in the most efficient manner possible. We have hundreds of satisfied clients and we are confident we can help YOU!
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 ask one of our Loan advisors to assist you with getting in touch with the SBA to confirm your loan application status.
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. The current limit is $500,000 up from the original cap of $150,000. However legislation is being worked on to increase this limit back to 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 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. 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. For loans over $200,000 a personal guarantee may be required.
8.If e received a denial for EIDL how can I dispute the denial?
To request reconsideration ask one of our loan specialists about the EIDL Reconsideration Program. Some documents you may need to provide include a copy of your 2019 Business Tax return, a Valid form of government Identification and a business Voided Check and a 4506T which authorizes the SBA to confirm with the IRS that your taxes have been filed.
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 deferral period.