Economic Disaster loan (EIDL)

[Englewood]

Anyone apply for this? In anticipation of this dragging on through summer, I applied...Got a confirmation number, that's it. No email, letter, call, nothing... anyone have any luck with this program?

This is different from the PPP loan that became available Friday.

 

[ONE-A-DAY]

Applied about a week ago, my number was in the 3 trillions, based on that I figured it would take some time.

 

[J DUNN]

Yes, I applied last week. Same experience as you. My understanding is cap is at $2M? And rate should be around 4%. Pretty cheap money for 30 years. I wish it was like a LOC so you only had to pay for it when you need it. Who knows, the way things are changing on the fly maybe it will turn into that.

 

[Englewood]

Yes, I applied last week. Same experience as you. My understanding is cap is at $2M? And rate should be around 4%. Pretty cheap money for 30 years. I wish it was like a LOC so you only had to pay for it when you need it. Who knows, the way things are changing on the fly maybe it will turn into that.

Correct...Cheap $$$.

My confirmation # is 1,045,000 (ignore the first 3 numbers 330).

 

[ChumpChange]

Yes, I applied last week. Same experience as you. My understanding is cap is at $2M? And rate should be around 4%. Pretty cheap money for 30 years. I wish it was like a LOC so you only had to pay for it when you need it. Who knows, the way things are changing on the fly maybe it will turn into that.

Yes but depending on the amount, different levels of underwriting are needed. Getting the full pop will take a couple months. Getting under 500,000 and you could have it within 30 days.

 

[Done-it-again]

Union bank is saying it can be august or possibly longer, as the FED's are still working out kinks...

 

[monkeyswrench]

I don't see this being abused at all

Already heard one guy here in town talking about "how much this could help out " their situation. People here with real businesses, cool. Those wanting to abuse the cheap money...not so much.

 

[Englewood]

Yes but depending on the amount, different levels of underwriting are needed. Getting the full pop will take a couple months. Getting under 500,000 and you could have it within 30 days.

The weird part is it didn't ask for an amount. It just asked for COGS, net profit, etc.

Those wanting to abuse the cheap money...not so much.

Taking advantage of an available program is abuse?

 

[SLT Kota]

No one gets anything but a confirmation number initially, the SBA system keep crashing from the volume. They will email you when they get to you eventually and I am sure they will have more for you to fill out.

The SBA made a total of $28 billion in loans during ALL of 2019, now they need to sort through $350 billion and were given less than a week to figure it out with everyone applying at the same time.

 

[Blackmagic94]

No one gets anything but a confirmation number initially, the SBA system keep crashing from the volume. They will email you when they get to you eventually and I am sure they will have more for you to fill out.

The SBA made a total of $28 billion in loans during ALL of 2019, now they need to sort through $350 billion and were given less than a week to figure it out with everyone applying at the same time.

do you work for SBA

 

[TCHB]

Cheap money=Drunk with credit=not good.

 

[boatpi]

And they pay for salary for like 90 days too.

 

[SLT Kota]

do you work for SBA

Nooooo, I work for a CPA firm and have been reading though the stimulus bill to help our clients that are applying for the different programs. Some of the first few people to apply for the EIDL have gotten an email from the SBA requesting more information but they keep giving different people different answers about the program, they are pretty quick to admit they can't handle the volume. I haven't heard of anyone getting any money at this point, even though the bill says 10K will be advanced 3 days after they have received it.

 

[monkeyswrench]

The weird part is it didn't ask for an amount. It just asked for COGS, net profit, etc.


Taking advantage of an available program is abuse?

Those using the money purely to benefit their well being, or cover previous poorly made decisions. Those are who I view as abusers.

Sorry, not a big money guy. Actually, broke compared to most here. Pops taught me to take care of myself, and not rely on anyone to lend a hand.
I also don't have to worry about employees anymore, nor accounts payable.

 

[ChumpChange]

The weird part is it didn't ask for an amount. It just asked for COGS, net profit, etc.

They will. It's down the road. My client got "approved" and then they asked him for how much he wanted. And the timing came into play. Max amounts go all the way to DC.

 

[brgrcru]

Those using the money purely to benefit their well being, or cover previous poorly made decisions. Those are who I view as abusers.

Sorry, not a big money guy. Actually, broke compared to most here. Pops taught me to take care of myself, and not rely on anyone to lend a hand.
I also don't have to worry about employees anymore, nor accounts payable.

I know a business that is going to take advantage of it . even though, they have not slowed down, with work.
that fits in my category of scum bags.

there answer . well hell everybody else is doing it.
needless to say I shook my head and walked away. speechless.

 

[monkeyswrench]

I know a business that is going to take advantage of it . even though, they have not slowed down, with work.
that fits in my category of scum bags.

there answer . well hell everybody else is doing it.
needless to say I shook my head and walked away. speechless.

The one up here is the same...changed my view of the owner a bit.

 

[LakeMead Boater]

From what I understand, the EIDL was set up as a natural disaster loan for businesses that needed to be rebuilt or reconstructed, however something like this does fit in the category. The amounts are up to $2mil for 30 years with a cap at 4% like others have said.

Someone mentioned that it'll take a while to get the money and that is correct, I've heard as late as the end of the year. This loan is normally used when a certain region has a natural disaster. In talking with an SBA rep, they said under normal circumstances, it takes about 3 weeks from application to an SBA agent reviewing. However, since this is national, it'll be months and they do not have an eta on how long it'll take at this point. Yes, you can get $10,000 as a loan on this, but I haven't seen the application for it. If you apply for the EIDL and somehow get the $10,000 and also apply for the PPP, the $10,000 will be subtracted from the PPP amount you receive.

All in all, this is a mess. The PPP will give businesses "instant" cash and the EIDL cash down the road.

I'm not an expert in the matter, just doing my research along with my bank and hoping for my PPP funding come Friday.

 

[ChumpChange]

I know a business that is going to take advantage of it . even though, they have not slowed down, with work.
that fits in my category of scum bags.

there answer . well hell everybody else is doing it.
needless to say I shook my head and walked away. speechless.

When will they slow down though? Will their supply chains start to dry up and they need to put things off? Will some of their receivables go out of business where they don't get paid and then in turn can't pay their employees?

There are a lot of people that are currently passing on this deal and I commend them for that but this situation will ultimately hit everybody at some point.

And as full disclaimer, processing these applications for my customers is "busy work" in order to help them survive and I do not get incentivized for doing them.

 

[brgrcru]

When will they slow down though? Will their supply chains start to dry up and they need to put things off? Will some of their receivables go out of business where they don't get paid and then in turn can't pay their employees?

There are a lot of people that are currently passing on this deal and I commend them for that but this situation will ultimately hit everybody at some point.

And as full disclaimer, processing these applications for my customers is "busy work" in order to help them survive and I do not get incentivized for doing them.

I can see your point . To some extent.
My decision of not getting help , is my pride , of never taking a hand out . Or a loan that I don't need .
Now, If I was desperate after 6 months or so. I might think differently , that means, when all my toys have been sold, all my saving have been exhausted . On the verge of losing my business and my house . Then I can see , maybe looking for help or taking a loan out .
But if business owners are trying to get money or loans and they think they can keep there life style , of spending . And telling me they have fallen on hard times . Well I call bullshit .
I have been through hard times and broke and know what it means to sell shit off , and be broke . Breaking a piggy bank open to buy milk
As my checks from vendors are 3/4 months late .

I have no idea when they will slow down . Maybe never . Maybe next week . But it kind of looks that we are at 50% point of this virus . All what they have been saying , is not 100% fact. Maybe things will get better in the next few weeks ? the same people did slow down in 2008 , crisis. and were. Crying the blues with three homes , commercial building, 2 boats , hot rods . And what ever else .
it's more of a trying to Save a life style .
But who am I to say anything ?

 

[ONE-A-DAY]

From what I understand, the EIDL was set up as a natural disaster loan for businesses that needed to be rebuilt or reconstructed, however something like this does fit in the category. The amounts are up to $2mil for 30 years with a cap at 4% like others have said.

Someone mentioned that it'll take a while to get the money and that is correct, I've heard as late as the end of the year. This loan is normally used when a certain region has a natural disaster. In talking with an SBA rep, they said under normal circumstances, it takes about 3 weeks from application to an SBA agent reviewing. However, since this is national, it'll be months and they do not have an eta on how long it'll take at this point. Yes, you can get $10,000 as a loan on this, but I haven't seen the application for it. If you apply for the EIDL and somehow get the $10,000 and also apply for the PPP, the $10,000 will be subtracted from the PPP amount you receive.

All in all, this is a mess. The PPP will give businesses "instant" cash and the EIDL cash down the road.

I'm not an expert in the matter, just doing my research along with my bank and hoping for my PPP funding come Friday.

Define “instant”

 

[Rbcconst]

I can see your point . To some extent.
My decision of not getting help , is my pride , of never taking a hand out . Or a loan that I don't need .
Now, If I was desperate after 6 months or so. I might think differently , that means, when all my toys have been sold, all my saving have been exhausted . On the verge of losing my business and my house . Then I can see , maybe looking for help or taking a loan out .
But if business owners are trying to get money or loans and they think they can keep there life style , of spending . And telling me they have fallen on hard times . Well I call bullshit .
I have been through hard times and broke and know what it means to sell shit off , and be broke . Breaking a piggy bank open to buy milk
As my checks from vendors are 3/4 months late .

I have no idea when they will slow down . Maybe never . Maybe next week . But it kind of looks that we are at 50% point of this virus . All what they have been saying , is not 100% fact. Maybe things will get better in the next few weeks ? the same people did slow down in 2008 , crisis. and were. Crying the blues with three homes , commercial building, 2 boats , hot rods . And what ever else .
it's more of a trying to Save a life style .
But who am I to say anything ?

Im not arguing your comments but when you get to that broke state you mention above nobody will lend you shit. You can borrow money when you have it but not when you desperately need it.


Sent from my iPhone using Tapatalk Pro

 

[LakeMead Boater]

Define “instant”

Lol! Sometime in the next few weeks (if everything goes as it should) vs July, August or later.

 

[monkeyswrench]

I can see your point . To some extent.
My decision of not getting help , is my pride , of never taking a hand out . Or a loan that I don't need .
Now, If I was desperate after 6 months or so. I might think differently , that means, when all my toys have been sold, all my saving have been exhausted . On the verge of losing my business and my house . Then I can see , maybe looking for help or taking a loan out .
But if business owners are trying to get money or loans and they think they can keep there life style , of spending . And telling me they have fallen on hard times . Well I call bullshit .
I have been through hard times and broke and know what it means to sell shit off , and be broke . Breaking a piggy bank open to buy milk
As my checks from vendors are 3/4 months late .

I have no idea when they will slow down . Maybe never . Maybe next week . But it kind of looks that we are at 50% point of this virus . All what they have been saying , is not 100% fact. Maybe things will get better in the next few weeks ? the same people did slow down in 2008 , crisis. and were. Crying the blues with three homes , commercial building, 2 boats , hot rods . And what ever else .
it's more of a trying to Save a life style .
But who am I to say anything ?

Im not arguing your comments but when you get to that broke state you mention above nobody will lend you shit. You can borrow money when you have it but not when you desperately need it.


Sent from my iPhone using Tapatalk Pro

I think both of these are not too far apart. Desperation is a sliding scale. To some, the ability to make a payment, to others, the ability to maintain lifestyle. In '09, I stepped out of an F550 Lariat and into a '90 Ranger...skipped lots of meals but my kids ate. If you get a loan because times are tight, I just hope Starbucks is off your menu. It's all in how you look at desperation and necessity.

 

[brgrcru]

Im not arguing your comments but when you get to that broke state you mention above nobody will lend you shit. You can borrow money when you have it but not when you desperately need it.


Sent from my iPhone using Tapatalk Pro

I totaly agree. So true , and very sad .
I wanted to refi my house over a month ago. To a lower rate. all this virus hit and the underwriter said "nope your business is closed ."
Oh well.

 

[Rotten deal]

I can see your point . To some extent.
My decision of not getting help , is my pride , of never taking a hand out . Or a loan that I don't need .
Now, If I was desperate after 6 months or so. I might think differently , that means, when all my toys have been sold, all my saving have been exhausted . On the verge of losing my business and my house . Then I can see , maybe looking for help or taking a loan out .
But if business owners are trying to get money or loans and they think they can keep there life style , of spending . And telling me they have fallen on hard times . Well I call bullshit .
I have been through hard times and broke and know what it means to sell shit off , and be broke . Breaking a piggy bank open to buy milk
As my checks from vendors are 3/4 months late .

I have no idea when they will slow down . Maybe never . Maybe next week . But it kind of looks that we are at 50% point of this virus . All what they have been saying , is not 100% fact. Maybe things will get better in the next few weeks ? the same people did slow down in 2008 , crisis. and were. Crying the blues with three homes , commercial building, 2 boats , hot rods . And what ever else .
it's more of a trying to Save a life style .
But who am I to say anything ?

My thought is they already know that nothing is going to be over anytime soon if they are making these kind of loans and grants.

 

[Rondog4405]

Applies last week.. Not a word....

 

[CoolCruzin]

Better to apply for the loan now than wait for when your in trouble later and they will not help.

 

[WYRD]

Its not about maintaining ones lifestyle as it is about remaining cash positive so you can keep funding the lifestyle of those that work for you and their families so they can use their lifestyle to go out and do their part to fund the lifestyle of others and so on. If you wait until you lay off 80% of your workforce and lose 60% of your revenue its likely too late to do any good. These loans are another form of stimulus to prop up a sagging economy before it breaks, they want you to take the money to keep status quo. Cash flow keeps the machine running.

 

[SLT Kota]

This is from an email the SBA sent out to some of the first people that applied. Word around here is also that they are going to limit the grant portion of the EIDL to 1K per employee (thought they haven't officially said this)

"Important message regarding your loan amount: Our nation's small businesses and private, nonprofit organizations are facing an unprecedented economic disruption due to the COVID-19 outbreak. The SBA is experiencing a large volume of applications for the Economic Injury Disaster Loan. Due to current appropriations for this program, the SBA will make initial loan disbursements for two months of working capital up to a maximum of $15,000 per applicant. This is in addition to the Advance of up to $10,000 each small business and non-profit is eligible to receive. By doing this, the SBA will ensure it is supporting the greatest number of applicants during this difficult time.

Additional options available to help small businesses, include the recently launched Paycheck Protection Program for payroll costs. The Paycheck Protection Program offers loans of up to $10 million at a 1% interest rate. These loans mature in two years, but the amount of the loan used for payroll and certain operating expenses in the first 8 weeks after loan disbursement may be forgiven if the business uses a minimum of 75% of the loan for payroll. Additional resources, such as information on debt relief and express bridge loans can be found at www.sba.gov/coronavirus."

 

[ONE-A-DAY]

This is from an email the SBA sent out to some of the first people that applied. Word around here is also that they are going to limit the grant portion of the EIDL to 1K per employee (thought they haven't officially said this)

"Important message regarding your loan amount: Our nation's small businesses and private, nonprofit organizations are facing an unprecedented economic disruption due to the COVID-19 outbreak. The SBA is experiencing a large volume of applications for the Economic Injury Disaster Loan. Due to current appropriations for this program, the SBA will make initial loan disbursements for two months of working capital up to a maximum of $15,000 per applicant. This is in addition to the Advance of up to $10,000 each small business and non-profit is eligible to receive. By doing this, the SBA will ensure it is supporting the greatest number of applicants during this difficult time.

Additional options available to help small businesses, include the recently launched Paycheck Protection Program for payroll costs. The Paycheck Protection Program offers loans of up to $10 million at a 1% interest rate. These loans mature in two years, but the amount of the loan used for payroll and certain operating expenses in the first 8 weeks after loan disbursement may be forgiven if the business uses a minimum of 75% of the loan for payroll. Additional resources, such as information on debt relief and express bridge loans can be found at www.sba.gov/coronavirus."

I heard August timeline on these "express" EID loans.

 

[wet hull]

Sad part is if you only partially help each business in need they will all fail. Its hard to say some may fail because they didn't apply in time but that is the nature of the beast. How can I only get $1000 per employee when they take home gross $2500 each every 2 weeks and survive. Not going to happen. Will have no choice but to layoff people and then my PPP is not forgiven either. What a lose / lose situation.

 

[SLT Kota]

I honestly think the PPP loans will get to most people before the EIDL's will, even though they were intended to be the other way around.

 

[SBMech]

No one I know has received anything, I did not apply, too fucking proud to take a handout myself.

I'll work out of a friends garage and sleep on his couch or in his driveway before I take a handout.

Last I read it has all been handed out already, probably to larger companies who did not need it, as usual.

 

[LakeMead Boater]

The EIDL is not a handout. It’s an Economy Injury Disaster LOAN. Basically a low interest, long term for business owners to obtain if their business was destroyed. It was originally intended for businesses that needed to rebuild after a natural disaster.

 

[76sanger]

And now the government owns your business!

 

[84miller]

I know a business that is going to take advantage of it . even though, they have not slowed down, with work.
that fits in my category of scum bags.

there answer . well hell everybody else is doing it.
needless to say I shook my head and walked away. speechless.

There is always someone who will take advantage, sadly, and think it's government money, without realizing it is money out of tax payer's pockets. However, I would suggest the business you stated not try to fool with the IRS. The business will have to file in the future and pretty sure a red flag will be raised as a receiver of funds. I would not like to be called in by the IRS, audited, they do no mess around with any type of fraud. For me it is not worth the stress of waiting for that IRS "call", been audited not fun, but came out ok because of good record keeping.

 

[ONE-A-DAY]

So are the individual stimulus checks getting out to people yet?