Yes, if you opened for business prior to January 31, 2020. Some good sources for establishing when you opened would be articles of incorporation as well as your local business license.
Yes. If you are delinquent on your SBA loan however, you will not be eligible for the EIDL.
You may apply to both programs simultaneously for COVID-19 disaster relief however you must ensure that the funds are spent on different types of expenses. For example, Paycheck Protection Program funds should be applied toward payroll first and foremost while EIDL funds may be put toward leases, utilities, or other essential operating expenses. You will want to maintain documentation of your spending.
The SBA will be the ones to review your credit history and decide whether you qualify. Their requirements are as follows:
- Credit History – Applicants must have a credit history acceptable to SBA
- Repayment – Applicants must show the ability to repay the loan
- Collateral – Collateral is required for all EIDL loans over $25,000. SBA takes real estate as collateral when it is available. SBA will not decline a loan for lack of collateral, but SBA will require the borrower to pledge collateral that is available
- Personal Guarantee—if a loan is over $200,000, a personal guarantee will be requested from the business owner(s).
The SBA will review your loan application and financial information, and will determine the amount they will loan you.
The maximum loan amount is $2 Million
The SBA will review your situation and will settle a loan repayment term on a case-by-case basis. The maximum repayment term will be 30 years.
While the EIDL COVID-19 webpage states that it will days to fund, please know that estimate is a best-case scenario. Given the current situation, it may take weeks rather than days for the loan to be approved and funding to be issued.
Information is asked in two phases—the application to be considered for the loan is very simple and straightforward and includes the following:
- General Business Information including Name, Tax ID, Address, # of Employees, Ownership info, and other applicant business information
- Gross Revenues for the 12 months prior to the date of the disaster (January 31, 2020)
- Cost of Goods Sold for the 12 months prior to the date of the disaster
After your application is submitted, the SBA will reach out to request additional information from you which may include the following:
- Tax information authorization (IRE Form 4506T) for the applicant(s)
- Six months history of company’s income and expenses
- Three to six months projection of income and expenses, to show the expected loss
- A personal financial statement for each owner(s)
Once you submit your application online, The SBA will provide you with an application number and confirmation that your application has been submitted. You will want to write down the application number or print the page, and keep it for your records. The SBA will then contact you via email with any additional document requests needed.