Question: Does SBA EIDL Loan Require Personal Guarantee?

Can a SBA disaster loan be forgiven?

It is important to point out that SBA is not authorized by Congress to provide disaster grants or to forgive the repayment of disaster loans, once the loans have been made..

What are the rules for the PPP loan forgiveness?

You must maintain at least 75% of total salary. If the employee’s pay over the 24 weeks is less than 75% of the pay they received during the most recent quarter in which they were employed, the eligible amount for forgiveness will be reduced by the difference between their current pay and 75% of the original pay.

Can I still apply for SBA EIDL loan?

Available for all eligible small businesses. Expires on December 21, 2020. As of July 11, 2020, SBA stopped processing EIDL Advance requests, because program funds have been fully allocated. EIDL loan applications will still be processed, even though the Advance is no longer available.

What can the SBA EIDL loan be used for?

Repair or replacement of physical damages; Refinancing long term debt; Paying down (including regular installment payments) or paying off loans provided, or owned by another Federal agency (including SBA) or a Small Business Investment Company licensed under the Small Business Investment Act.

What is the difference between SBA EIDL and PPP loan?

PPP allows businesses borrow up to $10 million in loans that are 100% forgivable if they do not lay off any employees or if they rehire employees they’ve already laid off. The EIDL allows businesses borrow up to $2 million in loans and includes a grant of up to $10k.

Can the EIDL loan be forgiven?

EIDL offered forgiveness of an up-to-$10,000 loan advance. PPP loans up to $10 million can be completely forgiven. EIDL forgiveness was automatic, provided you spent the money properly. PPP forgiveness requires an application with the lender.

How do I check my SBA disaster loan status?

Call 1-800-659-2955 (the SBA Disaster Assistance customer service center) about the application process, the status of your loan, or with any other questions you may have. If you applied through the COVID-19 portal, the SBA will contact you, but you may be able to get answers by calling the toll-free number.

What is the $10000 SBA EIDL grant?

Congress has expanded eligibility for SBA Economic Injury Disaster Loans (EIDL) and made an emergency advance of up to $10,000 available to small businesses and private non-profits harmed by COVID-19 within 3 days of applying for an SBA EIDL. To access the advance, you check a box within the application for an EIDL.

Do you have to personally guarantee an EIDL loan?

Do I need to provide a personal guarantee on EIDL loans? The SBA waived any personal guarantee on advances and loans below $200,000. For loan amounts over $200,000, the SBA may require personal guarantees.

Can I get both Eidl and PPP?

The SBA has two loan programs to help small businesses impacted by COVID-19: Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP). If your business is eligible, you can get both loans, using the funds simultaneously, as long as the use of funds are not the same.

Is SBA disaster loan still available?

On July 11, 2020, the U.S. Small Business Administration (SBA) announced it would no longer be granting advances under the Economic Injury Disaster Loan (EIDL) program. … The grant did not need to be repaid. Recipients did not have to be approved for a loan in order to receive the advance.

Can I get 2 SBA disaster loans?

No. Each SBA Disaster Loan is a separate loan; they cannot be consolidated or used to pay off earlier loans.