$10,000 SBA Loan / Grant

$10,000 SBA Loan / Grant

Gregory SchwartzBusiness Member
Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes

Anyone else applying for an SBA Economic Injury Disaster Loan? Based on what I've read in the Stimulus Bill we all might be eligible for a 10k grant advance.

"(e) Emergency grant

(1) In general: During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID–19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant within 3 days after the Administrator receives an application from such applicant.

(2)Verification: Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury pursuant to section 1746 of title 28 United States Code.

(3) Amount: The amount of an advance provided under this subsection shall be not more than $10,000.

(4) Use of funds: An advance provided under this subsection may be used to address any allowable purpose for a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)), including—

(A) providing paid sick leave to employees unable to work due to the direct effect of the COVID–19;

(B) maintaining payroll to retain employees during business disruptions or substantial slowdowns;

(C) meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains;

(D) making rent or mortgage payments; and

(E) repaying obligations that cannot be met due to revenue losses."

Those that are interested I applied at the sba.gov website 

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Member since 2019 · 13 posts · 24 votes
6y

Alright, I have an update, well, sort of. So I called the 1800 number of the SBA and talked to a rep after waiting about 1 hour. She was relatively nice. Following is the conversation:

Me: So I submitted the application Tuesday and I requested the $10,000 advance grant. Today's Friday. Where's my money, dawg? (just kidding, I did not say that last sentence)

Rep: It will take about 3 weeks before you get an email about your eligibility. 

Me: Huh? But Congress says 3 days in the law?

Rep: Well, the 3 days begins when we accept your application and process your eligibility , not when you submit it. (Now, I disagree. I think she's wrong, or the SBA is wrong). 

Me: OK, but Congress also said, I can still get the advance as a grant, even if I am later denied the loan. 

Rep: That is correct. That sure is a possibility (now we were on the phone, but I pretty sure I detected a "wink wink" here)

Me: So then why does it take 3 weeks? 

Rep: Because it does. Just keep watching your email and phone. They may email or phone you. 

Me: But I still don't understand... 

Rep: IT TAKES 3 WEEKS. KEEP WATCHING EMAILS. 

Me: Alright....

I am posting the text of the bill directly from Congress, and bold the relevant parts:

(e) Emergency Grant.—

(1) IN GENERAL.—During the covered period, an entity included for eligibility in subsection (b), including small business concerns, private nonprofit organizations, and small agricultural cooperatives, that applies for a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)) in response to COVID–19 may request that the Administrator provide an advance that is, subject to paragraph (3), in the amount requested by such applicant to such applicant within 3 days after the Administrator receives an application from such applicant.

(2) VERIFICATION.—Before disbursing amounts under this subsection, the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury pursuant to section 1746 of title 28 United States Code.

(3) AMOUNT.—The amount of an advance provided under this subsection shall be not more than $10,000.

(4) USE OF FUNDS.—An advance provided under this subsection may be used to address any allowable purpose for a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)), including—

(A) providing paid sick leave to employees unable to work due to the direct effect of the COVID–19;

(B) maintaining payroll to retain employees during business disruptions or substantial slowdowns;

(C) meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains;

(D) making rent or mortgage payments; and

(E) repaying obligations that cannot be met due to revenue losses.

(5) REPAYMENT.—An applicant shall not be required to repay any amounts of an advance provided under this subsection, even if subsequently denied a loan under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(

So, I think the SBA is full of crap. They are putting up red tapes that are nowhere to be found in the laws while Congress has written the laws in so black and white that it doesn't even leave any room for interpretation. So right now the SBA is saying:

1) We haven't received your application. It is not "received" until we review it. 

-> No way. The text of the law says nothing about reviewing. "within 3 days after the Administrator receives an application from such applicant". We have a confirmation number. That mean SBA receives it. Period. 

2) What is this reviewing for eligibility crap? Congress also says in black and white: "the Administrator shall verify that the applicant is an eligible entity by accepting a self-certification from the applicant under penalty of perjury". 

-> We DID that self-certification in the application itself. That should be all that is required. 

--> Bottom line: I think they're playing games with us and the SBA is blatantly defying Congress. 

I think I am going to start writing to my Senators and Representatives. Let's make some noise

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187 Replies

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  • Member since 2020 · 12 posts · 0 votes
    6y

    @Ben Zimmerman hopefully there is hope. Mines was pulled on 4/21 from them so at least their working. Hopefully we hear something soon...

  • Gaithersburg, MD · Member since 2013 · 90 posts · 9 votes
    6y

    Is everyone applying here have and LLC set up do you have to have an entity setup to qualify?

  • Alex FailaevPro Member
    Investor · Salisbury, MD · Member since 2015 · 120 posts · 56 votes
    6y

    Good morning everyone!
    Did not apply on the first round, I think there was another bill passed. Anyone knows if more funds will become available thru this program?

  • Accountant · Fairhope, AL · Member since 2017 · 34 posts · 19 votes
    6y

    @Alex Failaev Yes. Trump is supposed to sign for more funds at noon today. Portals should be back open by Monday. 

  • Alex FailaevPro Member
    Investor · Salisbury, MD · Member since 2015 · 120 posts · 56 votes
    6y

    @Zach Fetcko Thank you!

  • Property Manager · Lindenhurst, IL · Member since 2016 · 854 posts · 506 votes
    6y

    I'm sure this got asked before, but do we have to return the $1,000 we received?

  • Accountant · Fairhope, AL · Member since 2017 · 34 posts · 19 votes
    6y

    @Soh Tanaka

    The $1000 from EIDL is a grant that doesn’t have to be repaid. If you received a PPP loan then the amount forgiven in that loan would be reduced by the amount of the EIDL grant. In your case $1000. 

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    I have not received any funds, nor have they ran a credit check on me yet. I heard from quite a few people that their credit was checked last week and then the funds were deposited in their bank account with no notice, no email, no nothing.

    I have six employees and am expecting $6,000 in the grant.

    The DIY Landlord Book4.7247 Reviews
  • Member since 2020 · 12 posts · 0 votes
    6y

    I called a tier 2 representative and to my knowledge there is so many glitches and errors and my advice is to try to talk to someone. I called this morning and was told my business name didn’t match my bank account name which is only my name and we made changes and she marked it in her notes for immediate change and I made sure my bank account info was correct. My credit was ran 4/21 and I only did the short app I’m a sole proprietor. So hopefully now I get answers. 

  • Rental Property Investor · Huron, OH · Member since 2015 · 40 posts · 7 votes
    6y

    Genny how did you contact a tier 2 representative? Is there a number? I am going through the exact same thing as I am a sole prop and probably put my “business name” on the line where it asks for a “business name” and My bank account is in my name only. I’m guessing that could be a reason why I haven’t received anything. Could you advise how you got that changed? Thanks

  • Member since 2020 · 12 posts · 0 votes
    6y

    @James Defazio called one-eight hundred-six five nine- two nine five five (wouldn’t let me put actual number) and Once the voice recording lady start talking for about 1 minute just hit 2. It’ll connect you to a representative when you talk with them tell them can they connect you to a tier 2 representative because you want to see what bank account is listed. My rep asked ask for my name of course, app number, last 4 of soc. I then went to ask is there a way she can tell me the numbers or what bank they used. She told me Pnc which was correct and my numbers were correct but she said she’s seeing my name on bank acct doesn’t match business name and asked me what was it. I told her my name on bank acct is literally just my name and not my business so she made the changes and noted it for immediate change. 

  • Rental Property Investor · Huron, OH · Member since 2015 · 40 posts · 7 votes
    6y

    Thanks so much!! 

  • Member since 2020 · 12 posts · 0 votes
    6y

    @James Defazio no problem hope this helps and make sure it’s a tier 2 rep nobody else even if a reg rep try to give you problems they can transfer you to a tier 2 

  • Haymarket, VA · Member since 2016 · 45 posts · 10 votes
    6y

    I have an inquiry from 4/13 but have not received anything. Does this mean the accounts do not match or there is some issue? Just husband/wife landlords so figured we qualified for $2k

  • Accountant · Fairhope, AL · Member since 2017 · 34 posts · 19 votes
    6y

    @Nathan Gesner 

    If you actually have employees you may be better off getting the PPP instead. 

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y
    Originally posted by @Zach Fetcko:

    @Nathan Gesner 

    If you actually have employees you may be better off getting the PPP instead. 

    I have the PPP for $55,000 and believe we can get about 90% of it forgiven.

    The EIDL comes with a $1000 grant per employee which is an additional $6,000. If the loan rate is low enough, it makes sense to take it and leverage it.

    Everyone needs to assess their own situation but I think both loans are appropriate for my company.

    The DIY Landlord Book4.7247 Reviews
  • Rental Property Investor · Richmond, VA · Member since 2016 · 279 posts · 133 votes
    6y

    Hello everyone, I applied 3/31 as a 0 employee applicant. I received the 1k advance on 4/22. My assumptionis that the next steps would be that a LO would reach out to continue the process of the actual EIDL loan application. Has anyone moved on to the "next" steps as far as the EIDL goes?

  • Accountant · Fairhope, AL · Member since 2017 · 34 posts · 19 votes
    6y

    @Nathan Gesner
    I believe they settled on 2.75% on EIDL loans, but remember the $6,000 is not your loan amount. That is just the amount of the grant that you qualified for. Even though it doesn't have to be paid back it is my understanding that your PPP forgiveness will be reduced by the amount of EIDL grant that you received. 

  • Prospect, KY · Member since 2017 · 39 posts · 13 votes
    6y

    Can some PLEASE HELP ME? The website is NEVER ENDING DEAD LINKS.....

    https://www.sba.gov/disaster-a...

    Where do you go to get the EIDL?  Click on the "loan advance" and it takes you back to the same page!

  • Investor · Newport Beach, CA · Member since 2019 · 190 posts · 176 votes
    6y

    @Paul Passafiume

    I believe they are processing the backlog of applications they already have first.  They will open the application back up after the backlog and if there are any remaining funds.

  • Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Genny Smith:

    I called a tier 2 representative and to my knowledge there is so many glitches and errors and my advice is to try to talk to someone. I called this morning and was told my business name didn’t match my bank account name which is only my name and we made changes and she marked it in her notes for immediate change and I made sure my bank account info was correct. My credit was ran 4/21 and I only did the short app I’m a sole proprietor. So hopefully now I get answers. 

     Could you please PM me the phone # you used to get a hold of them? I need to make the same call you did.

  • Member since 2020 · 12 posts · 0 votes
    6y

    @Andrey Y. it’s one eight hundred-six five nine- two nine five five and when a customer rep picks up as them you want to talk to a tier 2 rep

  • Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Genny Smith:

    @Andrey Y. it’s one eight hundred-six five nine- two nine five five and when a customer rep picks up as them you want to talk to a tier 2 rep

     Thanks! Eastern time business hours only or 24/7?

  • Investor · Southeast, MI · Member since 2016 · 425 posts · 184 votes
    6y
    Originally posted by @Andrey Y.:
    Originally posted by @Genny Smith:

    @Andrey Y. it’s one eight hundred-six five nine- two nine five five and when a customer rep picks up as them you want to talk to a tier 2 rep

     Thanks! Eastern time business hours only or 24/7?

    Monday through Friday from 8:00 am to 8:00 pm, Saturday and Sunday from 8:00 am to 8:00 pm Eastern Time

  • Peoria, IL · Member since 2013 · 967 posts · 383 votes
    6y

    data point.  applying 0 employees. 

    4/2/20 applied

    4/14/20 letter

    4/26/20 hard credit pull (NameUS SM BUS ADMIN ODA) 

    Hopefully next data point is some money! gl all

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