Author Topic: SBA PPP and EIDL Small Business Loans (some money is forgivable)  (Read 535978 times)

Offline hvaces42

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4920 on: April 21, 2022, 11:29:41 AM »
Second round of EIDL increases.
Got this yesterday...


"Dear COVID EIDL Borrower:   

ARE YOU INTERESTED IN A LOAN INCREASE?

You may be eligible for an increase in your SBA COVID-19 Economic Injury Disaster Loan (COVID EIDL) amount (subject to SBA analysis). If you are interested, please apply now because COVID EIDL funds are expected to be exhausted this month. Requests are processed in the order received and are subject to availability of funds. (Please disregard this notice of a loan increase if you have already submitted your increase request.) The steps to request an increase are:

Confirm your loan eligibility and review the FAQs. Log onto your Account on the SBA Portal to submit a loan modification request. Complete the portal steps and submit relevant documents, including a new version of your IRS Form 4506-T for COVID EIDL. Respond to SBA requests for signature, confirmation, and documents.          

MONTHLY PAYMENT – SET YOUR REMINDER

You are responsible for your COVID EIDL monthly payment obligation beginning 30 months from the date shown on the top of the front page of your Note. During this deferment period:

You may make voluntary full or partial payments without prepayment penalties at Pay.gov - Home – select “Make a SBA 1201 Borrower Payment” Interest will continue to accrue on your loan during the deferment If you do not make voluntary payments during the deferment, a final balloon payment will be due on your loan at maturity Download copies of your loan documents from the RAPID Portal for your records: Login - SBA Economic Injury Disaster Loan Portal Application

In the upcoming months, SBA will provide detailed instructions for how to start repayment before the deferred first payment is due. For more information about COVID EIDL loans, please see COVID-19 Economic Injury Disaster Loan (sba.gov). If you have any additional questions, please email disastercustomerservice@sba.gov or call the SBA Disaster Customer Service team at 833-853-5638.

Sincerely,   
U.S. SMALL BUSINESS ADMINISTRATION"


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Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4921 on: April 28, 2022, 05:35:57 PM »
The deadline to request a loan increase or reconsideration is May 6, 2022.
The COVID-19 EIDL portal (covid19relief1.sba.gov, also known as the "RAPID portal") will close on May 16, 2022. Borrowers should download their loan documents from the portal prior to this date.
https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl

Offline shmooz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4922 on: April 28, 2022, 05:54:14 PM »
Thank you, if a loan was just funded, is it eligible for an increase? nothing showing in the portal.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4923 on: April 28, 2022, 06:31:02 PM »
Thank you, if a loan was just funded, is it eligible for an increase? nothing showing in the portal.
Depends on how much was received. If it's a "standard" business that reports income on line 1 of its tax return and 2X gross income was received, then they're not increase eligible as the maximum was granted.

Offline shmooz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4924 on: April 28, 2022, 06:36:06 PM »
Depends on how much was received. If it's a "standard" business that reports income on line 1 of its tax return and 2X gross income was received, then they're not increase eligible as the maximum was granted.

Thanks for your response, at the time of application the agent said we could apply for increase, but it would take more time for more verification so we said no.
If it's not showing a button to apply now, would it even be possible?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4925 on: April 28, 2022, 07:43:35 PM »
Thanks for your response, at the time of application the agent said we could apply for increase, but it would take more time for more verification so we said no.
If it's not showing a button to apply now, would it even be possible?
Yes. It sometimes takes a week or two for the button to appear after funding. In the meantime you can email CovidEIDLIncreaseRequests@sba.gov to get the ball rolling. They can open your portal for an increase.

Offline shmooz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4926 on: April 28, 2022, 08:15:52 PM »
Got it thanks

Offline sillypainter

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4927 on: April 28, 2022, 09:16:08 PM »
@cgr

I have another 200K approved for the increase, still deciding if I should take it, but the way interest rates are going, I am crazy if I don't take it, but they require a list of docs to submit.

How much time do I have to submit the docs? I also don't have RE for my business as collateral, will that be an issue? Also,.if I have 500K in stocks and another 500K in the bank will they make an issue approving the loan?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4928 on: April 29, 2022, 10:28:54 AM »
@cgr

I have another 200K approved for the increase, still deciding if I should take it, but the way interest rates are going, I am crazy if I don't take it, but they require a list of docs to submit.

How much time do I have to submit the docs?
It takes the SBA time to review documents, and the money might run out a lot sooner than the May 6 deadline, so if you want to give yourself a chance, submit the documents now.

I also don't have RE for my business as collateral, will that be an issue?
RE is not a requirement- if you don't have any enter N/A on the collateral spreadsheet (if the business does own any, it must be declared).

Also,.if I have 500K in stocks and another 500K in the bank will they make an issue approving the loan?
The main thing they look at is net business income after adding back interest and depreciation. You need $5,200 in net income for each $100k in EIDL, so if you qualify for $2MM in EIDL, you need $100k net to be approved. If you have $50k in net income, you can be approved for $1MM (if you qualify based on gross income for this amount), etc.
There are some other ways to "spruce up" your net income on top of interest and depreciation, but that depends on the assigned loan officer and how well you know the SBA's internal processing rules.

The above doesn't apply to loans under $500k, but applies to the entire loan, including any amounts under $500k, when seeking an increase above $500k.

Offline shmooz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4929 on: April 29, 2022, 10:36:14 AM »
Yes. It sometimes takes a week or two for the button to appear after funding. In the meantime you can email CovidEIDLIncreaseRequests@sba.gov to get the ball rolling. They can open your portal for an increase.

They sent back an email to go to the portal and hit the button to apply, I thought they opened it real fast, but there still is no button, so it was just a standard response. Will wait and see if said button appears.

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4930 on: April 29, 2022, 11:04:01 AM »
They sent back an email to go to the portal and hit the button to apply, I thought they opened it real fast, but there still is no button, so it was just a standard response. Will wait and see if said button appears.
Respond to the email that there is no button.

Offline shmooz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4931 on: April 29, 2022, 11:27:14 AM »
Respond to the email that there is no button.

Will do thanks

ETA - its from 'Donot reply'

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4932 on: April 29, 2022, 03:00:00 PM »
Will do thanks

ETA - its from 'Donot reply'
Respond to CovidEIDLIncreaseRequests@sba.gov

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4933 on: May 02, 2022, 12:44:19 AM »
It takes the SBA time to review documents, and the money might run out a lot sooner than the May 6 deadline, so if you want to give yourself a chance, submit the documents now.
RE is not a requirement- if you don't have any enter N/A on the collateral spreadsheet (if the business does own any, it must be declared).
The main thing they look at is net business income after adding back interest and depreciation. You need $5,200 in net income for each $100k in EIDL, so if you qualify for $2MM in EIDL, you need $100k net to be approved. If you have $50k in net income, you can be approved for $1MM (if you qualify based on gross income for this amount), etc.
There are some other ways to "spruce up" your net income on top of interest and depreciation, but that depends on the assigned loan officer and how well you know the SBA's internal processing rules.

The above doesn't apply to loans under $500k, but applies to the entire loan, including any amounts under $500k, when seeking an increase above $500k.
Is it based just on the business income? If business had negative income I wont be approved even if personal income is over $100K?

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4934 on: May 02, 2022, 08:45:27 AM »
Is it based just on the business income? If business had negative income I wont be approved even if personal income is over $100K?
Correct, but as I mentioned there are some other ways to "spruce up" business net income on top of interest and depreciation, but that depends on the assigned loan officer and how well you know the SBA's internal processing rules.

Offline TBD

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4935 on: May 02, 2022, 08:51:50 AM »
Correct, but as I mentioned there are some other ways to "spruce up" business net income on top of interest and depreciation, but that depends on the assigned loan officer and how well you know the SBA's internal processing rules.
Where do you need to enter only the business applying information and where do you need to enter all personal information?

« Last Edit: May 02, 2022, 09:02:58 AM by TBD »

Offline cgr

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4936 on: May 02, 2022, 10:12:20 AM »
Where do you need to enter only the business applying information and where do you need to enter all personal information?

2202- Biz only
RE- Biz only
PFS- All businesses & personal

Offline shmooz

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4937 on: May 05, 2022, 09:15:29 AM »
My 'request more funds' appeared today so I clicked it, says they are preparing, can this really be done before the portal closes?

Offline hvaces42

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4938 on: May 05, 2022, 09:36:45 AM »
My 'request more funds' appeared today so I clicked it, says they are preparing, can this really be done before the portal closes?
Took me a few days from button to funding.
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Offline YOSSI170

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Re: SBA PPP and EIDL Small Business Loans (some money is forgivable)
« Reply #4939 on: May 05, 2022, 09:54:10 AM »
My 'request more funds' appeared today so I clicked it, says they are preparing, can this really be done before the portal closes?

I got my email 9 days ago but my "request more funds" is not there yet, is there anything I can do?