Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 235938 times)

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1440 on: May 31, 2020, 10:16:20 AM »
BETTER LATE THAN NEVER
BETTER LATE THAN NEVER
IN PAST WEEK APPROVED ANOTHER 277K LOANS. AVERAGE LOAN AMOUNT THIS WEEK APPROX 65K

MAY 30
Loans Approved 707,613Dollars Approved $ 55,792,697,609
https://www.sba.gov/sites/default/files/2020-05/EIDL%20COVID-19%20Loan%205.30.20.pdf

MAY 23
Loans Approved 430,906 DollarsApproved $37,869,479,978
https://www.sba.gov/sites/default/files/2020-05/EIDL%20COVID-19%20Loan%205.23.2020.pdf
IN PAST WEEK APPROVED ANOTHER 277K LOANS. AVERAGE LOAN AMOUNT THIS WEEK APPROX 65K

MAY 30
Loans Approved 707,613Dollars Approved $ 55,792,697,609
https://www.sba.gov/sites/default/files/2020-05/EIDL%20COVID-19%20Loan%205.30.20.pdf

MAY 23
Loans Approved 430,906 DollarsApproved $37,869,479,978
https://www.sba.gov/sites/default/files/2020-05/EIDL%20COVID-19%20Loan%205.23.2020.pdf

Isnít their total for loans around $60-70bn? Means theyíll run out of EIDL funds very soon.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1441 on: May 31, 2020, 10:47:43 AM »
I called SBA about the EIDL loan, and tier 1 support answered the call with no hold time.

She did confirm that the loan term starts at funding, not when docs are released. That I have sixty days to sign the docs, and that if I already have a PPP I donít have to roll the EIDL loan into it, but that my PPP forgiveness would be reduced by the amount of my EIDL advance.

Once I get loan docs Iíll ask tier 2 (the ones who can access a loan applications and answer application-specific questions) and ask the same questions.

Tier 2 was useless, didnít sound much more knowledgeable than tier 1.

I accepted the loan because T2 advised me that even if Iím approved I might not get funded if funds run out. Probably DROPR, but I donít want to find out the hard way.

Also couldnít really clarify why site told me I have 30 days to sign while loan docs said 60 days.

Offline ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1442 on: May 31, 2020, 10:53:43 AM »
The only number (of many I tried) that worked for me is  888-313-4078

And what's the competence level there, beyond reading what I can see online?
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1443 on: May 31, 2020, 11:51:33 AM »
And what's the competence level there, beyond reading what I can see online?

Did you try the classic ďcan I speak to your supervisorĒ?

Offline beeweegee

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1444 on: May 31, 2020, 01:21:09 PM »
And what's the competence level there, beyond reading what I can see online?
One time I used that number, the competence was quite high. The other, not so much.

Offline ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1445 on: May 31, 2020, 01:33:23 PM »
Did you try the classic ďcan I speak to your supervisorĒ?
"Supervisor is not available", "Supervisor said that they will give the sane answer".

BBB complaint takes 30 days to get response.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1446 on: May 31, 2020, 01:55:00 PM »
"Supervisor is not available", "Supervisor said that they will give the sane answer".

BBB complaint takes 30 days to get response.

Why does seeing my post liked make me unhappy.  :'( :'( :'(
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1447 on: May 31, 2020, 02:06:00 PM »
"Supervisor said that they will give the sane answer".

Thatís definitely something you DROPR. Iíve heard that so many times when calling companies, and yet the supervisor was able to offer/do more.

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1448 on: May 31, 2020, 02:06:43 PM »
Why does seeing my post liked make me unhappy.  :'( :'( :'(

Likes in this COVID forum are to be interpreted as supportive of your challenge.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1449 on: May 31, 2020, 02:09:55 PM »
IN PAST WEEK APPROVED ANOTHER 277K LOANS. AVERAGE LOAN AMOUNT THIS WEEK APPROX 65K

MAY 30
Loans Approved 707,613Dollars Approved $ 55,792,697,609
https://www.sba.gov/sites/default/files/2020-05/EIDL%20COVID-19%20Loan%205.30.20.pdf

MAY 23
Loans Approved 430,906 DollarsApproved $37,869,479,978
https://www.sba.gov/sites/default/files/2020-05/EIDL%20COVID-19%20Loan%205.23.2020.pdf


Isnít their total for loans around $60-70bn? Means theyíll run out of EIDL funds very soon.
STILL LONG WAY TO GO...

With $50 billion from Congress, the agency can currently fund a total of about $350 billion in loans, Scott said.

https://www.startribune.com/sba-abruptly-drops-disaster-loan-limit-from-2m-to-150k/570471512/

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1450 on: May 31, 2020, 05:10:06 PM »
STILL LONG WAY TO GO...

With $50 billion from Congress, the agency can currently fund a total of about $350 billion in loans, Scott said.

https://www.startribune.com/sba-abruptly-drops-disaster-loan-limit-from-2m-to-150k/570471512/

Some back of the hand math:
4m applicants
$65K avg loan so far
$350B to disburse (if youíre correct)

Means thereís more than enough money for each of the 4m EIDL applicants to get a loan. Please CMIIW

Now I read (skimmed) the article you linked and I donít follow. What does the quote actually mean:
ď With $50 billion from Congress, the agency can currently fund a total of about $350 billion in loans, Scott said.Ē

If congress only approved $50bn, where does the other $300bn come from?
« Last Edit: May 31, 2020, 05:13:38 PM by AsherO »

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1451 on: May 31, 2020, 05:23:00 PM »

Now I read (skimmed) the article you linked and I donít follow. What does the quote actually mean:
ď With $50 billion from Congress, the agency can currently fund a total of about $350 billion in loans, Scott said.Ē

If congress only approved $50bn, where does the other $300bn come from?

Unlike PPP where loans are forgivable and funds must be apportioned by Congress to fund these eventual grants, EIDL are loans which are expected to be paid back so they can give out 7X what they apportioned. (apparently they expect 14%-15% to default on their loans)

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1452 on: May 31, 2020, 06:08:57 PM »
Unlike PPP where loans are forgivable and funds must be apportioned by Congress to fund these eventual grants, EIDL are loans which are expected to be paid back so they can give out 7X what they apportioned. (apparently they expect 14%-15% to default on their loans)

Thatís a pretty scary default rate. Maybe thereís just a ratio to how much they can (over?)leverage themselves. I guess this is pretty good news for anyone who applied hoping to get an EIDL

If they could process 260k loans in one week for approval, they might get through all 4mm applications by the end of August.
« Last Edit: May 31, 2020, 06:13:47 PM by AsherO »

Offline ExGingi

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1453 on: June 01, 2020, 09:38:06 AM »
The only number (of many I tried) that worked for me is  888-313-4078

I've been trying that number too (out of separation), but don't get any answer and get disconnected after a few minutes.
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1454 on: June 01, 2020, 10:06:17 AM »
I've been trying that number too (out of separation), but don't get any answer and get disconnected after a few minutes.

Desperation?-

Offline beeweegee

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1455 on: June 01, 2020, 11:10:17 AM »
I've been trying that number too (out of separation), but don't get any answer and get disconnected after a few minutes.
Strange, it has worked wonders for me multiple times.

Offline alexk.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1456 on: June 01, 2020, 12:19:18 PM »
Question about EIDL - we have been offered on a few companies EIDL loans for up to $150K. As the terms of 30 years @ 3.75% for a business loan are pretty attractive, are there reasons not to take the loans ( assuming we have ability to pay it back obviously)? There have been some saying that SBA loans may be onerous for the collateral ( i.e. would need SBA approval to sell any assets that are collateral) or documentation that would be required to be kept for the entire terms of the loan to prove it was used only for certain purposes, or may be required to hire an external accounting review etc... Was wondering what others thoughts were on these.

Also, what is the case if you do not have collateral for your business?   

Offline AsherO

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1457 on: June 01, 2020, 12:40:33 PM »
Question about EIDL - we have been offered on a few companies EIDL loans for up to $150K. As the terms of 30 years @ 3.75% for a business loan are pretty attractive, are there reasons not to take the loans ( assuming we have ability to pay it back obviously)? There have been some saying that SBA loans may be onerous for the collateral ( i.e. would need SBA approval to sell any assets that are collateral) or documentation that would be required to be kept for the entire terms of the loan to prove it was used only for certain purposes, or may be required to hire an external accounting review etc... Was wondering what others thoughts were on these.

Also, what is the case if you do not have collateral for your business?   

Basically anything other than inventory is collateral, and you need written SBA authorization to sell any collateral.

If you donít have any collateral theyíll lend you the money anyway, though assets you acquire might become collateral as well, consult a lawyer.

FWIU, if you borrow $25k or less (per company?) they donít do the collateral thingy.

Offline alexk.

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1458 on: June 01, 2020, 02:55:37 PM »
Thanks for the info.

Anything else to look out for or concerns we should have in taking out these loans? Are there any other negatives to the EIDL Loans?

Offline Yoel

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #1459 on: June 01, 2020, 03:17:10 PM »
They emailed me on Friday verifying some info and I replied back right away. When can I expect to hear back from them?