EIDL New Response from SBA

[presley]

We've been emailed twice in the past week from SBA saying we need to make a portal to get our EIDL. We were approved for up to $120K. I put that we wanted $4K, which is the amount that I expect will be forgiven based on previous posts I've read.

They want us to sign a loan agreement for 3.75% for the $4K loan at $20./month. Nowhere in the 14 page loan document does it say anything about forgiveness. It does say EIDL across the top and it's directly through the SBA government website and not through a bank. It says I need to keep financial records for 3 years.

This doesn't sound anything like what others have said about they applied and then there was a deposit in their bank account. The portal did populate with the bank information that I entered back in March when I first applied for the EIDL. I'm leaning towards just saying forget it and not proceeding. Really, $4K isn't even one pay period and wouldn't cover a weeks worth of business expenses.

Just asking here again because I remember several people saying they got the money. I am only asking about EIDL and not asking at all about PPP.

 

[CalGalTraveler]

Your comments sound similar to what I have been hearing. You should try to contact them. I don't think you need to accept the loan to get the grant. The grants are separate.

I haven't heard anything from them about the loan or a portal but received the grants in our accounts after about 14 days.

If we don't pursue the loan by completing the portal is the grant forgiven? Or do we need to get the formal loan offer and then decline? I am on the fence as to whether to take on a loan right now. It has taken so long to get a response, I am not sure I want to further encumber our businesses at this point. The grants are very helpful in getting us through this. I just don't want them coming back in a few years asking for the grant if we didn't complete the portal.

 

[CalGalTraveler]

FYI...Here is a Reddit Thread which might provide some helpful info on what others are experiencing:

https://www.reddit.com/r/EIDL/comments/gudbcd

 

[easyrider]

There are two types of EIDL loans. The emergency loan that was given out at $1000 an employee and the EIDL business loan that has covid 19 strings attached. While the terms for the business loan look good, once you read the fine print it kind of sucks, imo. We are approved but there is no way we can say we would be using the funds for covid mitigation.

Bill

 

[TravelTime]

The EIDL loan is separate from the grant. The grant automatically showed up in the bank account. We received the grant about 6 weeks ago. This week we got an email about the loan and we did not process it. So I am assuming the EICL loan will not move forward and there is nothing else to do since we only accepted the grant. In your case, it does not sound like you ever got the grant. This is something I would look into if you only want the grant. It sounds like that part of the process fell through.

 

[CalGalTraveler]

@TravelTime Your response is helpful. When you say you didn't process it. Are you saying you did not complete the portal when you received it? I don't want to generate another hardpull on credit by completing a portal if we don't want the loan. But will do it if it is a requirement to keep the grant.

 

[TravelTime]

@TravelTime Your response is helpful. When you say you didn't process it. Are you saying you did not complete the portal when you received it? I don't want to generate another hardpull on credit by completing a portal if we don't want the loan. But will do it if it is a requirement to keep the grant.

Yes we received an email to log into the portal but we did not do it.

 

[linsj]

The EIDL loan is separate from the grant. The grant automatically showed up in the bank account. We received the grant about 6 weeks ago. This week we got an email about the loan and we did not process it. So I am assuming the EICL loan will not move forward and there is nothing else to do since we only accepted the grant.

Same here. The grant was a big help, and I don't need the loan so I haven't done anything with it. I sure hope I don't have to do anything more.

 

[presley]

They never gave us any grant money. Based on what you've all said, this is a whole different animal than what I applied for back in March and isn't something that I want/need. Honestly, after being in business for over 30 years without ever needing a dang thing from the SBA, I'm soured on not getting the grant, especially since we applied so early. Oh, well. I guess I'll just move on and defund them by not taking this or any other loan from them.

 

[CalGalTraveler]

@presley Sorry to hear about your hassles. You are not alone. Perhaps 2 things happened:

1) There were 2 applications. One prior to April (long form) and a streamlined version. Perhaps you didn't fill out the streamlined application again after submitting the long form app? You don't lose your place in line.
2) perhaps you didn't check the box on the streamlined application that requested the loan advance.

Confusing I know. Suggest that you call them and find out what happened to your grant. You don't have to accept the loan. Worth a shot for $4000 and one phone call.

 

[easyrider]

I looked hard at the SBA loan. In fact, I would have gladly used the funds on purchasing more real estate but the terms of the loan include providing documentation that the loan is used for covid more than other business.

If there were a way around the SBA over sight or an unexplored legal angle to work with the SBA over sight I would take the loan. They gave me 60 days to decide.

Bill

 

[easyrider]

They never gave us any grant money. Based on what you've all said, this is a whole different animal than what I applied for back in March and isn't something that I want/need. Honestly, after being in business for over 30 years without ever needing a dang thing from the SBA, I'm soured on not getting the grant, especially since we applied so early. Oh, well. I guess I'll just move on and defund them by not taking this or any other loan from them.

You could take the SBA loan and take $1000 per employee. The EIDL is an unsecured loan up to $25,000. If you have four employees you could take $4000 and later ask the that the loan be forgiven as intended by the CARES ACT.

Bill