$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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  • Investor · Santa Clara, CA · Member since 2014 · 20 posts · 2 votes
    6y

    @Kirk R. - did you receive anything?

  • NEW YORK, NY · Member since 2017 · 70 posts · 6 votes
    6y

    Applied for 10,000 grant in the beginning of April.  Received 1,000 at the end of April in my bank account.  The 1000 is inline with what SBA sent out as guidance (email) as advance money will be 1000 per employee.  I am the only employee of my business.  

    Now I am not sure if SBA has attempted to run my credit to process a LOAN (not grant).  From what I recall, I have locked the credit agencies from having credit pulled on me to prevent credit card fraud.  (Experian, Equifax, TransUnion).

    I think I am going to call them to get further guidance.

  • Rental Property Investor · Boston, MA · Member since 2016 · 82 posts · 27 votes
    6y

    Hey All, a lot of good info on this thread and happy to see people have started to receive payments. 

    I missed the first round for the EIDL grant. I believe the government approved an additional $60 billion for the program on April 24, however when I go to the website I see they are still not accepting new applicants. 

    Wondering if anyone has any color on when they will be accepting new applicants again, or if I'm looking in the wrong place. Below is the website I've been referencing. Any insight would be a huge help! Thanks!

    https://www.sba.gov/page/disaster-loan-applications

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

    I got an email today from the SBA that had me create an account. Once logged in I am authorized a loan up to $4,700. There is no mention of any portion of this being a grant. I filed as a landlord, husband/wife, so expected the grant portion to be $2k. Not sure how I should proceed....

  • Rental Property Investor · Richmond, VA · Member since 2016 · 279 posts · 133 votes
    6y
    Originally posted by @Michael Osborne:

    I got an email today from the SBA that had me create an account. Once logged in I am authorized a loan up to $4,700. There is no mention of any portion of this being a grant. I filed as a landlord, husband/wife, so expected the grant portion to be $2k. Not sure how I should proceed....

    Michael, when did you first apply for the advance? I applied somewhere around March 31, received the 1k but have yet to have my credit pulled or receive an email to set up online portal for the loan. Thanks

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

    @Eric Rosiello

    I heard that the portal is back open but only accepting applications for agricultural businesses right now. 

  • Rental Property Investor · Boston, MA · Member since 2016 · 82 posts · 27 votes
    6y

    @Zach Fetcko

    Thanks Zach! I see that on the website now as well.

    Eric

  • Investor · Santa Clara, CA · Member since 2014 · 20 posts · 2 votes
    6y
    Originally posted by @Michael Osborne:

    I got an email today from the SBA that had me create an account. Once logged in I am authorized a loan up to $4,700. There is no mention of any portion of this being a grant. I filed as a landlord, husband/wife, so expected the grant portion to be $2k. Not sure how I should proceed....

     Honestly?  Take all you can and utilize it as needed. I would bank on the govt forgiving it. Then again, you may be requested to repay.  Gamble you'll need to consider. Personally, I'd take it

  • Investor · Oak Park, MI · Member since 2014 · 299 posts · 47 votes
    6y

    I went thru the application very quickly when I applied about a month ago, I believe the amount of the loan will be based on some "losses" box that we filled out? I remember not having a clue about how to calculate this, was this based on how much someone had lost to that point or projected losses for the year or what??

  • Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    6y

    Applied: 4/2

    $1000 Funded: 4/28

    No follow up calls, emails, nothing. I guess no loan?

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