Home Coach Reggie's Play of the Day Some updates on EIDL Grants & Loans (4/20/20)

Some updates on EIDL Grants & Loans (4/20/20)

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Some updates on EIDL Grants & Loans (4/20/20)

  • EIDL Loans & Grants are facing a huge backlog
    • If you have some FOMO (Fear Of Missing Out) on EIDL or PPP you can get some perspective from this live, daily & unofficial poll of business owners at https://www.covidloantracker.com/
    • This unofficial poll as of today at 1:58 pm says that only 7.7% surveyed have received their EIDL Grant a.k.a. The “Up To 10K Grant” directly from SBA.
    • Even if that is low, the bottom line is that almost every other business owner that has applied hasn’t gotten theirs either.  You’re in a long line of applications to be processed & likely awaiting the next round of funding to be appropriated from Congress.
  • Why is it taking so long? I thought I was going to get it in 3 Days?
  • Who’s gotten it?
    • I’ve received my EIDL grant, that was cut back to 2K based on midstream guideline changes.  I applied on Monday, March 30th. Joe Jones of Foxhill received 10k and he applied on Sunday, March 29th.  I haven’t heard of anyone else receiving the money.  That puts most everyone in the 90%+ that hasn’t received the EIDL Grant.  Most everyone that I know applied after Tuesday, March 31st, hasn’t received the money.
    • I would suspect most everyone is in the pile of applications that are awaiting new appropriations and the news says they are close to a deal.  They talk like a 400 Billion deal is going to be reached in the next day or so. There are some provisions that keep all of the larger businesses and larger banks from ‘eating up all of the funds.’ Keep a watch on the news.
  • EIDL Loan
    • After I received my EIDL last Monday, I was sent an email that asked me to proceed with my EIDL Loan. I did qualify and was approved for a healthy EIDL Loan that as ½ of my annual revenue with great terms (3.75% interest, 30 years, no personal guarantee, no significant restrictions on business usage). I just can’t use it for the same things that I will use on the forgiveness portion of the PPP loan (payroll, rent, utilities, etc.)  I don’t know how the cost of goods & personal credit history affects qualification amounts.  
    • I was emailed documents from the SBA on Friday to close the loan virtually via DocuSign. Took me minutes and I am optimistically awaiting that loan to fund any day now.

 

My guidance after digesting this is if you haven’t gotten your EIDL money and feel some sort of emotion around it (anxious, angry, worried, etc. take a deep breath and exert some patience.  There has never been a government funding situation like this and there is no manual for how to do this. In an effort to put money on the streets quickly, they missed some loopholes the first time around and they didn’t appropriate enough money to go around.  BTW, the word on the street is that California and larger businesses (50+ employees) quickly ate up most of the PPP money on the first round.  What I feel certain about is that they are not going to going to commit political suicide and let millions of voters go without the funding that was not only promised but put into law.  They just need the time to make sure they don’t make some of the mistakes they made last time.  Also, each party has its own priorities that they want to be funded so some negotiating had to happen.

I hope that helps,

COACH Reggie

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