FIVE FACTS ON COVID RELIEF FUNDS
What is a COVID EIDL loan?
In response to the COVID-19 pandemic, SBA was given the authority to make low-interest fixed-rate COVID EIDL loans to help small businesses and other entities overcome the effects of the pandemic by providing borrowers with working capital to meet ordinary and necessary operating expenses.
What can I use the loan proceeds for?
Borrowers may use COVID EIDL working capital loan proceeds to make regular payments for operating expenses and to:
- Pay or pre-pay business non-federal debt incurred at any time (past or future), including monthly payments, payments of deferred interest
- Pay regularly scheduled payments on federal debt
- Payroll
- Rent/mortgage
- Utilities
- Other ordinary business expenses
You may not use the funds to:
Expand your business, make prepayments on debt that is owned by a federal agency (including SBA) or an SBI, or start a new business.
How much can I borrow?
$2 million is the maximum loan amount, however borrowers will be offered a loan amount they are eligible for.
What are the most common reasons for decline?
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Unsatisfactory credit history - Credit score does not meet minimum credit score requirement.
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Unverifiable information - During the review process there were one or more items that were reviewed that caused the SBA to question the validity of certain information in the application. This can occur as a result of a failed identity verification, international IP address, client device associated with fraud, or high-risk IP address.
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Business activity not eligible - The information you submitted with your application does not meet SBA regulations for an eligible business activity.
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Failure to respond - If you do not respond to the request for additional information within 7 days, the application will be withdrawn with a status of borrower did not wish to proceed.
What is the deadline to file and be approved for the program?
The program ends December 31, 2021 or when funds are exhausted, whichever occurs sooner. Be sure to file your application as soon as possible to allow processing time for approval.
If you have questions about your already submitted EIDL application, contact the SBA Disaster Customer Service Center at (800) 659-2955 or disastercustomerservice@sba.gov. You can also contact SBA by email at PDCrecons@sba.gov to request reconsideration or to reactivate your COVID EIDL application.
Learn more - Attend a Webinar
Atienda este seminario, EIDL por COVID-19
Fecha: martes,12 de octubre del 2021
Hora: 6:00pm EST
When: Wednesday, October 13
Time: 1:00pm EST
When: Thursday, October 14
Time: 9:00am EST
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