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I have applied for and obtained these for a number of clients. Although the Covid-19 EIDL loan was supposed to come in at up to two million, actually the cap was set at more like $400,000. and more recently has been lowered to $150,000. with most offers coming in around $25,000.
There is no personal guarantee required for any loan under $200,000. All loans over $25,000. require a security interest against collateral of the business, but the status of this collateral is not verified.
Loans are amortized over a 30 year period at 3.75% for most businesses, and 2.75% for non-profits. There are no payments due for the first 12 months.
There are two portions to an EIDL: the grant portion (paid to you in advance of the loan processing), capped at $10,000. (at the rate of $1000. for each employee) does not need to be repaid, and is deposited into your account soon after you make the application, as long as the application passes some preliminary verification of the valid status of the business entity. Even if your loan is eventually denied the grant advance is yours to keep.
Nothing is really verified other than the status of the business as a valid entity, and with some sole proprietorships not even that is verified, but for all of these EIDL loans a personal credit report is run with Experian.
The application starts here:
And the short form which has been in place since April 2020, looks like this as you move through the application process:
With these initial questions you must check all of the boxes or else you will be declined.
Pretty standard information but this line:
will determine how much you get in your advance.
Answering Yes to either of the first two questions will result in outright denial of your application. Answering Yes to the third question will result in further scrutiny and a background check.
Of course you will want to check the box to be considered for the advance.
There are ways to package these applications so that they are approved, and approved quickly, and also to speed along the processing times. Hire me for help to get the most you can for your business.
There is no personal guarantee required for any loan under $200,000. All loans over $25,000. require a security interest against collateral of the business, but the status of this collateral is not verified.
Loans are amortized over a 30 year period at 3.75% for most businesses, and 2.75% for non-profits. There are no payments due for the first 12 months.
There are two portions to an EIDL: the grant portion (paid to you in advance of the loan processing), capped at $10,000. (at the rate of $1000. for each employee) does not need to be repaid, and is deposited into your account soon after you make the application, as long as the application passes some preliminary verification of the valid status of the business entity. Even if your loan is eventually denied the grant advance is yours to keep.
Nothing is really verified other than the status of the business as a valid entity, and with some sole proprietorships not even that is verified, but for all of these EIDL loans a personal credit report is run with Experian.
The application starts here:
And the short form which has been in place since April 2020, looks like this as you move through the application process:
With these initial questions you must check all of the boxes or else you will be declined.
Pretty standard information but this line:
will determine how much you get in your advance.
Answering Yes to either of the first two questions will result in outright denial of your application. Answering Yes to the third question will result in further scrutiny and a background check.
Of course you will want to check the box to be considered for the advance.
There are ways to package these applications so that they are approved, and approved quickly, and also to speed along the processing times. Hire me for help to get the most you can for your business.
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