Frequently Asked Questions About Applying for SBA Disaster Loans (EIDL) Due to Coronavirus

Frequently Asked Questions About Applying for SBA Disaster Loans (EIDL) Due to Coronavirus

Frequently Asked Questions About Applying for SBA Disaster Loans (EIDL) Due to Coronavirus

Updated September 10, 2021 to include new SBA guidance.

Small business owners impacted by the coronavirus crisis may want to consider an SBA Economic Injury Disaster Loan (EIDL). These loans are attractive for several reasons, including:

  • Low fixed interest rates: 3.75% or 2.75% for non-profits
  • Long-term repayment of up to 30 years
  • No prepayment penalties
  • Payments deferred (interest accrues)

Here are answers to some common questions from small business owners about Economic Injury Disaster Loans (EIDLs). Note, we have gathered this information from a variety of SBA sources and strive to provide helpful guidance, but do not rely on this as definitive answers to your questions. 

If you have questions about your individual situation or application, we recommend you call SBA Disaster Assistance at 1-800-659-2955. The call center is currently open Monday–Sunday, 8a.m. – 8p.m. ET. Resource partners such as SBDCs, SCORE and Women’s Business Centers can help as well. 

In addition to the Economic Injury Disaster Loan, we encourage you to check out other resources including:

Who Are These Loans For?

Small businesses must have been affected by the COVID economic crisis. Eligible businesses include:

  • A small business that meets SBA COVID EIDL size standards;
  • An individual who operates under as a sole proprietorship, with or without employees, or as an independent contractor; or
  • A private non-profit or small agricultural cooperative

Note that as of September 8, 2021, the SBA revised its guidance, including which businesses qualify. It clarified that an affiliate is a business that you control or in which you have 50% or more ownership. SBA created additional way to meet program size standards for businesses assigned a NAICS code beginning with 61, 71, 72, 213, 3121, 315, 448, 451, 481, 485, 487, 511, 512, 515, 532, or 812, AND that have no more than 500 employees per physical location AND that have no more than 20 locations AND that meet all other COVID EIDL eligibility requirements.

How Much Can I Ask For? 

The maximum loan amount for EIDL is normally $2 million. However, due to demand the SBA initially limited loans to 6-months of economic injury with a maximum loan amount of $150,000. It later raised the limit to 24-months of economic injury with a maximum loan amount of $500,000.

More recently, though, it raised the loan amount to $2 million for businesses that qualify. Note that you will not ask for a specific loan amount on the application. The SBA will determine the loan amount for which you qualify based on the information on your application.

If you previously received a loan when the cap was lower, the SBA may have reached out to your business via email with instructions on how to request additional funds. You can also visit the SBA portal to see whether you have been extended an invitation to apply for a larger loan.

How Does the SBA Decide How Much I Get? 

The SBA will calculate economic injury according to a couple of different formulas spelled out in Disaster Loan Standard Operating Procedures. According to the SBA, “economic injury” is defined as: 

[A] change in the financial condition of a small business concern, small agricultural cooperative, small aquaculture enterprise, or PNP of any size (excluding religious organizations) attributable to the effect of a specific disaster, resulting in the inability of the concern to meet its obligations as they mature, or to pay ordinary and necessary operating expenses. Economic injury may be reduced working capital, increased expenses,  cash shortage due to frozen inventory or receivables, accelerated debt, etc.

How Do I Get the $10,000 Grant?

Note: In addition to this information please review information about the new Targeted EIDL grants for 2021.

The CARES Act included an Economic Injury Disaster Loan emergency grant of up to $10,000 to be made within three days of application. The SBA then limited it to $1,000 per employee. (Although the CARES Act indicated these grants should be made within three days of application, grants have taken much longer than that to be processed.) Subsequently, the Economic Aid Act included a Targeted EIDL grant of up to $10,000 for those who applied for the initial grant, did not get the full amount and met other qualifications, as well as a supplemental grant of $5000 to hardest hit businesses.

These grants may be used for: 

  • providing paid sick leave to employees unable to work due to the direct effect of the COVID–19; 
  • maintaining payroll to retain employees during business disruptions or substantial slowdowns;   
  • meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains; 
  • making rent or mortgage payments; and 
  • repaying obligations that cannot be met due to revenue losses. 

These grants do not have to be repaid and they are not taxable at the federal level. (Be sure to check with your tax professional regarding taxes at the state level.)

How Long Do I Have to Be in Business?

The time in business requirement has been waived. However the business must be in operation by the date of the declared disaster. For COVID-19-related claims that means before January 31, 2020.

Do I Have to Have Employees?

No. Business owners without employees may be eligible. 

Are Home-based Businesses Eligible to Apply?

Yes. Being a home-based business does not disqualify you. However you must list a US address on your application. If you normally use a PO Box for business correspondence, make sure to list your physical home address. 

How Can I Use EIDL Funds?

EIDL is designed to help business pay normal operating expenses that they would have paid had the disaster not occurred. The SBA says EIDL may be used for working capital and for normal operating expenses, including:

  • Payroll
  • Rent
  • Inventory, raw materials, variable costs
  • Commercial Debt (payment and prepayment)
  • Federal Debt (regularly scheduled payments)

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 SBIC
  • Start a new business

Read: 5 Ways You Can and Can’t Use Your EIDL Loan

Can I Use This to Consolidate Debt? 

Previously, EIDL funds were not to be used to refinance long-term debt. However, in revised guidance that went into effect September 8, 2021 the SBA said it will “permit COVID EIDL working capital loan proceeds to be used to pay any type of business debt, including loans owned by a Federal agency (including SBA) or an SBIC…COVID EIDL loan proceeds may be used to make debt payments including monthly payments, payments of deferred interest, and pre-payments, except that prepayments will not be permitted on debt that is owned by a Federal agency (including
SBA) or an SBIC.”

What If I Just Want the Grant?

You do not have to accept the loan. You can accept the grant and decline the loan.

If I Have Access to a Line of Credit Elsewhere Can I Apply?

Yes you can still apply. You can use that funding while you wait for disaster assistance. In fact, if you have access to another source of borrowed capital to bridge the gap between your application with the SBA and when funds are dispersed, we would recommend that.

What Is the Credit Score Requirement?

Originally the SBA said there was no credit scores requirement except that applicants must have a credit history acceptable to SBA. Some borrowers have been denied based on credit scores. Subsequently, the SBA has posted the following guidance:

  • $1000-$500,000: Minimum credit score 570
  • More than $500,000: Minimum credit score 625

The SBA obtains personal credit scores from Experian.

What If I Don’t Have Great Credit Scores? 

If you have damaged credit, apply and include an explanation with your application. Guidelines for those who process SBA Disaster Loan applications state: 

“For disaster lending purposes, satisfactory credit history is defined as a history that generally shows payments to creditors as agreed unless otherwise justified… 

Generally, a history that consists of minor, isolated instances of adverse credit or late payments is acceptable. Major instances of adverse credit such as unpaid judgments, repossessions, previous foreclosures, charge-offs, and unpaid collections can be overcome provided: 

  1. The applicant explains the lapse; and 
  2. The applicant has other accounts with “as agreed” payment records. 

For purposes of evaluating adverse information found on an applicant’s (credit reports), the information should be considered within the totality of circumstances; for example, financial difficulties caused by one-time situations such as divorce, job loss, serious medical illness, etc.

For purposes of disaster lending, medical collections are not considered adverse information.

Non-medical collections or charged off accounts with an aggregate of $10,000 or less and foreclosures or deed-in lieu of foreclosures which occurred more than two years from the date of the loan application are all considered an acceptable credit risk and do not require any additional justification.”

However, SBA Standard Operating Procedures also state that loans cannot be recommended for approval if the credit history is unsatisfactory so there is no guarantee that it won’t result in a denial. 

What If I Have Been Through Bankruptcy?

Prior bankruptcy is not an automatic reason for denial. A previous Chapter 7 bankruptcy may be acceptable, especially if it is older, but even recent bankruptcy (within the past two years) may be acceptable if it was due to circumstances beyond the applicant’s control and he or she has maintained a positive credit history since.

If the applicant business (or the owner, if the business is a sole proprietor or an independent contractor) is currently in bankruptcy, the applicant business is eligible if it is operating under an approved plan of reorganization under either a Chapter 5, Chapter 11, Chapter 12 or Chapter 13 bankruptcy. In order to receive COVID EIDL funds, the applicant must provide SBA with evidence of approval for the loan by the court/trustee for the bankruptcy case.

The applicant business is NOT eligible if it: 

  • Filed for either a Chapter 5, Chapter 11, Chapter 12 or Chapter 13 bankruptcy but no plan of reorganization has been approved, or
  • Filed for a Chapter 7 bankruptcy, is undergoing a liquidating Chapter 11, and/or is permanently closed.

Will My Business Credit Be Checked? 

The SBA requires a business credit check from Dun & Bradstreet or a similar commercial credit agency for approved loan amounts of $200,000 or more, unless your business is a sole proprietorship.

Tip: You can check your business credit with a free Nav account. Doing so will not affect your credit scores.

What Credit Problems Will Disqualify Me? 

In addition to the guidelines above you may not qualify if:

  • You are more than sixty (60) days delinquent on child support obligations. 
  • You have judgements against you for federal debts and you have not worked out a satisfactory repayment plan. 
  • You have federal tax liens of more than $10,000. (You may still qualify but you must provide a satisfactory explanation and be able to repay the tax debt. It’s recommended you work out a payment plan with the IRS as soon as possible.) 

What Do I Do If My Credit Is Frozen?

It’s recommended that you lift a credit freeze before you apply. For these loans, personal credit checks go through Experian. Make sure you have alerts set up to detect any new activity on your credit reports so you can freeze your files again once your credit has been checked. 

How Fast Can I Get Funding?

Overall, the SBA’s goal is to process completed applications within 21 days but this is an unprecedented disaster of national scope and few loans are being processed that quickly. If you are requesting a loan increase or loan amount above $500,000, keep in mind the SBA has implemented a window to review smaller loan applications. The SBA says larger loan requests will “receive a decision after October 8th or within 1.5 months of application submission.”

What If I Shut Down And Don’t Know When I Will Reopen?

You can request additional funds in the future if needed. 

Is There a Deadline to Spend the Funds? 

There is none specified, however, the SBA does state that these loan “proceeds can only be used for working capital necessary to carry the concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury.” In other words, they are to be used to help the business recover from the disaster.

Do I Have to Be Turned Down By A Bank First?

No. While you certainly should be looking at all financing options available, including  Paycheck Protection Program loans, you won’t have to supply credit rejection letters in order to apply. The “credit elsewhere” test the SBA normally performs has been waived for these loans. 

Is There A Prepayment Penalty?

No. You can pay off the loan early without a penalty.

Can Landlords With Investment Properties Qualify?

Yes, you may be eligible.

What Documents Do I Need?

The SBA has streamlined the initial online application. Additional documentation may be needed as well. 

If you were “in operation” before Jan. 1, 2020:

  • 2019 Federal Income Taxes, including all schedules, for the applicant business (required)
  • 2020 Federal Income Taxes, including all schedules, for the applicant business (if available)
  • If the most recent Federal income tax return has not been filed, a year-end profit-and-loss statement and balance sheet for that tax year
  • For nonprofit organizations, a complete copy of the organization’s IRS tax-exempt certifications and complete copies of the three most recent years of “Statement of Activities”
  • IRS Form 4506-T (You will complete this online when you apply)

If your business is not a sole proprietorship, you will be required to provide a Board resolution or certificate of authority providing authority to commit the business to the COVID EIDL loan after your loan is approved before loan closing. You may use your own Board resolution or ODA Form P-022 –Resolution and Certification Form.

If you started being “in operation” on or between Jan. 1, 2020 and Jan. 31, 2020, review the guidelines in the SBA FAQs.

Additional information that must be submitted for loans greater than $500,000:

  • SBA Form 2202 – Schedule of Liabilities
  • List of Real Estate Owned
  • SBA Form 413 – Personal Financial Statement for general partners, managing members, and all owners of 20% or more of the applicant business (Not required for nonprofit organizations)

Additional information that may be requested after you submit your application:

  • Copy of government-issued photo identification of each principal owning 20 percent or more of the applicant business
  • Current year-to-date profit-and-loss statement
  • For loans less than or equal to $500,000: Schedule of Liabilities listing all fixed debts (SBA Form 2202 may be used)

How Can I Get Help With the Application?

You can contact the SBA by calling 1-800-659-2955 or by email at Warning: There may be a long wait time. 

Another great option is to contact your local SBDC, Women’s Business Center or SCORE office for free assistance.

You may also be able to hire a professional to help you, though the SBA emphasizes that you do not have to pay anyone to complete this application. 

Is A Personal Guarantee Required?

While SBA loans normally carry a personal guarantee, they have been waived for COVID Disaster Loans, up to $200,000. Loans of $200,000 or more require a personal guarantee.

Is Collateral Required?

A UCC-1 filing will be placed for loans above $25,000. Loans of $500,000 or more will also require business real estate to be pledged, if available. However, the borrower will not be denied solely because there is no collateral. 

What Tax Returns Do I Have To Provide?

You will likely have to submit IRS Form 4506-T “Tax Information Authorization” which allows the SBA to obtain transcripts of Federal income tax returns. Tax returns are required for each principal owning 20% or more of the applicant business, each general partner or managing member, and each affiliate when any owner has more than 50 percent ownership in the affiliate business. Affiliates include business parents, subsidiaries, and/or other businesses with common ownership or management. Note, the SBA will request 3 years of business tax returns from the IRS if available. 

Am I Eligible If I Already Have a Disaster Loan from a Previous Disaster? 

Yes, but there is a total limit of $5 million of SBA assistance. 

What If I Have Two Businesses In Different States?

According to the SBA, the way you apply is determined by how you file your federal taxes. For example:

  • If you operate three locations but report all sales in one federal tax return, you should complete one application for all of your locations; or
  • If you operate three locations and file a separate federal tax return for each location, you should complete a separate application for each location.

If you are a sole proprietor with multiple businesses:

  • If you report your business’s revenues on a single Schedule C, you should complete one application;
  • If each of your businesses has its own tax identification number and you file separate Schedules C, you should complete a separate application for each business.

What Happens After I Apply?

Your loan application will be processed by a case manager. They may reach out to you at some point so make sure you provide a phone number you will answer and an email address you check regularly

I Applied Before Funds Ran Out. Do I Apply Again?

If you applied before funding was exhausted, the SBA may automatically reach out. If not, you may apply again. SBA is processing loan applications on a first-come, first served basis. 

Business owners in the Nav SBA Cares Act Loan Insights Facebook group are sharing updates on their EIDL applications. You may want to join to learn from their experiences.

When Will I Have to Start Making Payments?

Payments will be deferred for two years. However, interest accrues. Payments of principal and interest are made over the remaining 28 years. There is no penalty for prepayment. 

How Do I Check the Status of My EIDL Application?

You can check the status of your application any time by logging into your account in the SBA portal. Monitor your email for updates (check your spam folder as well) for emails from, and monitor your bank account to see if the grant has been deposited.

What If I Get Turned Down?

You have up to six months to request a reconsideration. According to the SBA, you should send your application number and information required to overcome the reason for decline via email to or mail to the U.S. Small Business Administration Disaster Assistance Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, Texas, 76155.

The Bottom Line

This loan application can be confusing but don’t let that stop you from applying. Here are two tips:

  1. You can go through the online application to see what information you’ll need before you actually apply. Just don’t submit it. 
  2. You can ask for help. If you have questions, our best advice is that you try to get answers from SBA Disaster Assistance or an SBA resource partner such as your SBDC, Women’s Business Center or SCORE chapter. Many of these offices are hosting webinars, office hours, and other events to help answer questions. If you can’t get a specific answer, apply and just do the best you can.

We will continue to monitor this program and provide updates.

Please keep in mind this information is changing rapidly and is based on our current understanding of the programs. It can and likely will change. Although we will be monitoring and updating this as new information becomes available, please do not rely solely on this for your financial decisions. We encourage you to consult with your lawyers, CPAs and Financial Advisors. To review your real-time funding options with one of Nav’s lending experts, please contact us.

This article was originally written on March 25, 2020 and updated on February 2, 2023.

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485 responses to “Frequently Asked Questions About Applying for SBA Disaster Loans (EIDL) Due to Coronavirus

  1. Hello. I had a single member LLC and borrowed less than 25K on EIDL. Now my business is closed and I am on W2 with another company. What if I cant repay the EIDL ? Will they garnish my pay from W2? Thank you in advance!!

  2. I applied for SBA EIDL loan on November 2021, I got approved for both EIDL and advance in December 2021, but till date, I haven’t been deposited any funds yet, I don’t know why, please can anyone relate to the same thing or does anyone know why SBA hasn’t paid me yet &; if SBA is still going to pay me or not?

    I got approved for $106k and $15k grant, totaling $121k.

    Is SBA still paying or have I been forgotten?
    Please I need an urgent reply and help, kindly help me resolve this & know what’s going on please, I’m in a deep need of funds now, in a serious emergency.

    Also, pease what can I do to make them quickly respond to me & pay me?

    Anticipating your replies and help, most especially from Gerri Detweiler.


    1. Hi Stacy – the SBA’s FAQs state: What do I do if my loan application was approved, but I’m experiencing a
      significant delay in receiving the funds?

      It’s possible there is an error with the bank account information you submitted. Contact SBA’s Customer Service Center at 800-659-2955 (800-877-8339 for the deaf and hard of hearing) or for assistance.

  3. Pls I want to ask if I’m declined for EIDL and Target sba grant because my business did not substantiate the required reduction in gross receipts to establish economic loss greater than 30% according to the reason of my dinial that I received in my business email … but my initial sba loan application is in processing so my question is will this affect my sba loan application because I first applied and finish my sba loan application before I start the EILD sba grant

      1. what happen if my account number is incorrect and my sba application is in already in process waiting to be approved .

  4. Thank you for this blog.

    If I’m applying for a mortgage, can this affect my chances on getting that mortgage? I’m asking for a loan of $150K. Will it show on my credit score or credit history?

    Thank you

    1. There will be an inquiry on your Experian personal credit report. The loan itself does not appear on your credit reports. I’d suggest you talk to your mortgage loan officer if you are concerned about how this will impact your application.

  5. Hello I applied for the SBA loan and was denied at first due to my credit. but in March of 2021 SBA sent me an invite but to a old email address. I contacted SBA and submit a reconsideration due to my old email address which I did not receive I had no idea I was invited. so I contacted SBA and updated my new email address do you think I will be able to still get the grant? And I also submit a email to the reconsideration department.

  6. I received an SBA EIDL loan in Dec 2020 as a Sole proprietor for $25K. In April 2021 I became single member LLC. This month of August 2021 I received EIDL loan increase approval and my paperwork to sign is still under my name – Sole proprietor. Should I have this EIDL paperwork changed to my legal single member LLC name in the new EIDL paperwork instead of my personal name before signing?

    1. Joe – Please reach out to the SBA for an answer to this question. They’re in the best position to advise you on what you should do to help avoid problems funding your loan.

  7. Hello I qualified for a grant with SBA but then I was denied because it said I owed child support and that I don’t live in a low income community. They said I marked those on the bubble when answering the questions. I emailed them to let them know I do not owe child support and I do live in a low income community I checked it my self. But my question is how long is the process before I hear from sba about my grant after I emailed them like 3 weeks ago but have not heard any thing from them. Should I email them again or should I just wait till they email me back.

    1. There have been complaints similar to yours unfortunately. We’d recommend you try to reach out to your local SBA office. If they can’t help, try your elected officials in Washington (Representative, Senators) as they have staff members who are supposed to assist constituents who are having problems with government programs.

  8. If you uave a business with an EIN but also have an additional dba under the same EIN can you get two loans?

    1. Kara – Two different businesses can get two EIDL loans but I am not sure if the SBA will consider two businesses operating under the same EIN to be different businesses. More likely they will want you to apply for a single loan that covers both. (You want to be careful to avoid being flagged as a potentially fraudulent application.) I would encourage you to contact the SBA or your local SBA office to clarify your question.

  9. Hi, thanks for your explanations. I don’t have Schedule C in my 2019 tax return, I have in 2020 tax return. Should I write my income according to the 2020 tax return while I am applying for SBA Disaster Loans (EIDL)?

    1. For COVID-19 related EIDL you must be in business before January 31, 2020. So as long as that’s the case you should be able to apply based on 2020 information. If you need help applying for EIDL, your district SBA office and/or Small Business Development Center should be able to help. Find help here.

  10. Hi, thanks for your explanations. I don’t have Schedule C in my 2019 tax return, I have in 2020 tax return. Should I write my income according to the 2020 tax income or not?

  11. Ms. Detweiler I recieved a EIDL loan in August of 2020 & now I’m eligible for an increase in funds. I have begun the finalizing of loan documents but now the SBA has asked for my tax transcripts but I haven’t filed business taxes in a couple years .. WHAT will happen if they (IRS) find out I haven’t filed?

    1. I don’t know whether that information will be shared with the IRS Scott, but regardless you’ll want to try to get caught up. If you owe taxes you may be able to get on a payment plan. I’d encourage you to get with a tax professional to try to get this taken care of.

      1. I apply for PPP about 10 days ago and I’m still waiting for the SBA to approve me what’s the problem..

  12. i put in for the loan got acepted but didnt know it mess my section 8 up havent receivved it yet want to cancel the loan how do i do this

  13. Hello: I made a mistake on calculating my PPP. I was overpaid. When I apply for forgiveness will the lender notice this and do I have to pay back the over amount ASAP? The bank I received my PPP loan from paid me the over amount. Why didn’t they catch it before they gave me the extra money. I did not realize at the time that the over amount was incorrect. When you stay contact the lender, my bank says they have no one At the branch to handle my question.
    Thank You.

  14. This is bull! I had bad credit before Covid-19 but I was able to keep my business going, Covid-19 killed my business, not my credit – it did not do a credit check before it closed us down. So now the government is only willing to help businesses with credit, even though all businesses sufferer equally by the Covid-19 shutdown. Another lockout of the system for us small black-owned business…again!

  15. Hi. I am an independent contractor. Due to pandemic, my current line of business is not making any money; I am planning to shut it down and start a new line of business. Do you think I can get an EIDL loan for this new startup business? I need a relatively big capital to start it up. I have written a very comprehensive business plan for this new business.

    1. No, unfortunately, you cannot use EIDL or PPP for a startup. You may want to look into crowdfunding. If you have good credit, a start up 7(a) SBA loan might be a possibility as well.

  16. Hello, I already have a SBA EIDL loan. Can I apply again for another loan because my business is still being impacted?

  17. Hi everyone. I applied for the sba loan back in June , I got approved and funded, I have been a self employed working as a taxi driver and delivery driver since 2016. When I was applying for the loan I used my 2018 tax return to fill up the questionnaire because i had an accident toward the end of 2018 and didn’t resume driving till January 2020. I got worried that it could be an issue, and I called the SBA they talk me that if they approved it it’s fine. But I am still worried. I would like to know your opinion about it! Thank you

      1. But I have a hard hit on my credit report from them and was rejected also if I was independent contractor then llc now how do I apply

  18. Sally my accountant took all my info for the SBA loan and applied for it , but later in two months he said I was declined . Is there any way I could check if he actually got the loan and used it for himself .? Please let me know

  19. I applied June 2020 and was almost immediately accepted and sent a portal application. Now it says Application is being Processed. I have called and emailed every couple of weeks, but it’s been 4 months now and nothing. EXCEPT, for the past week or so, the portal is not accessible. That says “The request is blocked.
    0Qn58XwAAAAArHvSEIYxSRJoqFLKC8Oe9TUlBRURHRTIyMTEAN2M0NTQ0NjEtNjE3NS00YjM1LWJmZDYtN2Y0NjM4YTNlYzdm” which is pretty concerning now, since I can’t even check to see that it’s still processing or will finally ask for me to sign docs. This is so disturbing. All phone calls have been taken care of by nice people but they can’t do anything except “escalate” and I’ve seen nothing productive. Emails are the same. Any suggestions now? I have emailed since the portal disappeared, but I have not called since then.

      1. Thank you. I did do that today. The FB page is incredibly difficult to navigate though, in order to find specific suggestions. I’m just lost now since I can’t even get into the portal to check on my application process.

        1. I’m sorry Sally – I wish there was more transparency into the program. If you don’t get anywhere with the SBA you may want to reach out to your elected officials in Washington as this is a federal program and they have staff who are supposed to assist with constituent problems with federal programs.

      2. Hello,

        I applied for the loan and just filled out my Board of Resolution . Is this the last step? Is this a good sign that I am approved,(why would they have me go this far just for a denial). Is making no sense in my brain,lol. Would you know how long it takes for update once I signed my resolution form?

  20. Applied I was eligible for 80k, went back to check on my application and it said $0 declined. Does anyone know why this happens.

    1. So sorry to hear this. Usually it’s due to credit. But I’d suggest you reach out to SBA. You do have the right to request reconsideration. If you learn something new please let us know.

    2. Because our government dont care about the people. Ita all about how much they can make. No rocket scientist needed to figure that one out. Our whole government is corrupt and they feed off us.

  21. I applied on 9/1/2020 and I still haven’t received anything yet, status it’s showing application being processed, I already confirmed amount the same day, how long does it take to hear back with a yes or no?

    1. EIDLs are only reported to business credit if the amount exceeds $25,000. In that case a UCC-1 filing will be placed and may appear on business credit reports. I have never seen a UCC filing on personal credit.

  22. I have 2 questions. I have called the SBA and nobody is on the same page or they brush you off by giving you an answer that is no where near what you have asked. My question deals with the EIDL Loan. I am going to be purchasing a home soon. Will that loan show up on my personal credit report? My business did not get the grant, I was told my routing number goes to another bank and I read it straight of the check. Then they tell me to check with my bank to make sure the money was not rejected. I asked for the transaction id so the bank can track it and there was complete silence and no response to the email requesting this information. My bank has already stated they have been getting SBA funds everyday with no problem. Why are they putting us through this?

    1. I can’t imagine it will. The SBA does not have a mechanism to report to personal credit from everything I’ve researched and been told. I’m sorry you’ve had so much trouble getting the funds! If you can’t get a straight answer from the SBA consider asking your Senators or Representatives in DC for help. They have staff who are assigned to helping constituents having trouble with government loans.

  23. I applied the EIDL I never received anything saying I was approved however there was a direct deposit that was rejected from my bank from SBA will I receive a check in the mail? Or can I add my other bank account?

    1. You should check with your bank to see why it was rejected. I wouldn’t expect the SBA to automatically send you anything more. You should also reach out to the SBA.

      1. Hank Leonard

        My question is once you at the where do my funds go portion of the Eidl application if I don’t have a bank account anymore how will I receive funds or becabke to process this application if I havevred astricks keeping me from moving to the next portion of the application?

    2. Why did your bank reject the SBA direct deposit? just curious I am waiting for a deposit also
      want to make sure that doesn’t happen!

  24. Hello, I was approved for the EIDL loan but not sure I should take it and have several questions I’m hoping you could answer: Does the “economic injury” need to be ongoing? And how does one “prove” it? (Very clearly lost a lot of money March through May in reduction of customers, but after this it reduces as business picks up & maybe a lawyer could argue July maybe is “just a low month”, would I need to prove its covid related and how?) Does the “economic injury” need to be proportionate to the amount approved? If you say get a loan of 40k, do you need to show 40k of “economic injury”? What happens if you only show $20k to their satisfaction? What counts as “economic injury”? We have ongoing increased sanitizing and time spent cleaning, but since we are self employed there is no “proof” of this work being done, and no compensation for it..of course costs of sanitizers and filters are countable…just a few questions… thanks in advance..

    1. Randy – I wish I had specific answers for you. I’ve read the Standard Operating Procedures for Disaster Loans but they just don’t go into that level of detail. My sense is a business should be taking the loan in good faith and then able to document they spent the money for approved purposes. My sense is they are mainly concerned about fraud and default (taxpayers ultimately fund these loans). You can always reach out to your regional SBA office or talk to someone at your Small Business Development Center (SBDC) for more help. You can locate those partners at Have you read this article? 5 Ways You Can and Can’t Use Your EIDL Loan

  25. How long does it take to know if you get the loan or not . How will I be contacted by email, I would prefer a phone call please . I maybe would like some help on the application . But first ill like to look over it .

    1. Willie – The SBA will contact you by email most likely. They simply have too many applications to call each borrower directly. If you want help with the application contact your local Small Business Development Center (SBDC) or SCORE chapter which you can locate at They are a great resource and can help for free.

  26. Hello
    My name is Linda and i apply SBA Disaster Loan and i got approved by August 6th and August 14th i got a mail that the money disbursed in my account but i didnt see anything .what may have cause the delay .Please i need answer .

    1. Linda – Unfortunately the SBA is the only place that can answer that question. You’ll need to contact the SBA Disaster Assistance hotline at 800-659-2955. When you do I suggest you have your checking account information handy. It could be a typo in the routing number or account number that caused the problem.

  27. If a business loan is received from SBA and the business ownership is amended and transferred to my partner in the future due to unforeseen circumstances, will the business loan transfer to the sole owner?

  28. I’m a not a permanent resident.
    I’m here with a E2 visa as business owner.
    I apply for EDIL LOAN but they denied my request because of my Visa.
    Can I re apply
    I’m loosing money like everybody else.
    Can I have any kind of SBA loan?
    Thank you for your attention.

    1. Tina – I’m so sorry to hear you didn’t qualify. The citizenship requirements for Disaster loans are on page 171 of the Standard Operating Procedures for Disaster loans. If your business is in distress, it will be hard to qualify for traditional SBA loans and the PPP program is currently closed. My best suggestion is to contact your local SBA resource partner to see what other options may be available in your area. Their services are free.

  29. We were approved for the EIDL Loan. The amount of $28,500 was deposited into our business account yesterday. I didn’t realize that it’s a loan that is not going to be forgiven. We have not received an advance or the PPP. We certainly need this money but I’m afraid we won’t be able to repay it even over 30 years and not even starting payments for a year. I’m fearful that we could possibly even have to close permanently within the coming year. (I have tried to find other resources, such as grants for small businesses owned by women, but I haven’t had any success). How do I give this money back now without having to pay any interest? Will giving this money back hurt any chances of getting any grants or stimulus funds that may be made available in the future?

    I do appreciate any help with this!

  30. I am an independent contractor and applied for an EIDL. When applying I did see a check box affirming I wanted the EIDL grant, or “advance”. In the next week I provided all information requested by SBA and was shown a loan amount (5k) to agree to. Another week passed after I accepted and I was then notified that my application was denied due to my credit being low.
    What about the grant? I haven’t received either the grant or loan. Also, I will be applying for reconsideration; what information can I provide to successfully be reconsidered and approved for the EIDL??
    Thank you for any insight!!

    1. Aaron – I wrote about that in this article. It makes no sense to me to have the grant denied due to credit since it doesn’t have to be repaid. You can ask for reconsideration for the loan but since grant funds are exhausted I’m not sure it will help with the grant. We don’t have specific guidelines from the SBA in terms of what will result in a successful reconsideration.

  31. We have the PPP and the EIDL foregiveness grant and a loan. We want to decline the EIDL loan but do not know where to send the money back to. Please advise. We are a small not profit, but understand we have enough money to keep us through the Pandemic. Someone else needs this more than we do and we would rather have it going to them indead. Please advise how to return the money.

  32. A friend fill SBA form and got approved in 10 minutes. I did my own too and i answer all my identity question correctly but still my application showing …..Your application is being processed…… over 20 days. Still waiting to sign my signature.

  33. I am a CPA and our Texas State Chat room is saying that even if loan prepaid (6 month, 2 years, etc). Interest is still owed for the complete 30 years.

    i.e. 1 forum comment: PAYMENT TERMS: Borrower must make all payments at the place the SBA designates. Borrower may prepay this Note in part or in full at any time, without notice or penalty. Borrower must pay principal and interest payments of xxx.xx every month beginning 12 months from the date of the Note. SBA will apply each installment payment first to pay interest accrued to the day SBA receives the payment and will then apply any remaining balance to reduce principal. All remaining principal and accrued interest is due and payable 30 years from the date of the Note.

    i.e. Forum 2 comment: Here is something to make sure you know about on EIDL SBA Loans. I received a grant of $1,000 since I am a sole proprietorship. Then I was offered a loan of $19,000 with a 30 year term at 3.75%. Payments of $93 per month starting 12 months after closing. With these terms the total interest payments would be around $12,500. If I pay the loan off early, I would still owe the full interest. I ask two SBA employees how much interest I would have to pay if the loan was paid off in one year. Both said it would be the the same as if I paid it off over 30 years. I declined the loan.

    1. David – I checked with Bob Coleman publisher of The Coleman Report which is one of the leading training firms for SBA loans. He says, “You are only charged interest on the outstanding balance.” That seems to match the loan terms you mentioned. If the SBA employees are saying otherwise that’s concerning.

  34. I have signed the loan agreement after approval but no funds have been deposited into my account, can they deny my sba loan after I’ve signed and been approved? Thanx!

  35. My loan status says amount confirmed identity verified completed electronic dispursement completed and application being processed does this mean I am just waiting for dispursement???

  36. I recieved a acceptance offer and I accepted it was 2weeks ago how long do it take to get approved?

  37. Hello Gerri:
    I received my loan for $7K earlier this week……I have not received the grant for $1K……I was told by SBA that the grant would be forthcoming……Do you think that grant timing information is accurate? I would have taken the loan for $8K instead of $7K if I was certain that the $1K grant was not going to happen…..Thanks for your insight!

  38. I understand I don’t have to start payments for a year but interest will still build. When it comes time to pay in a year will my payment amount stay the same regardless of the amount of interest built up between now and then? Is the monthly number set in stone ?

  39. There a mistake on my loan application and No one has gotten back with me. I get hung up on every time i stay on the phone for 2 hours this is just a mess. I never receive the loan advance and now there saying they have ran out of money

  40. I applied for a EIDL Loan and got approved. I do not have an EIN it was all done as a sole proprietor. Will this 50K loan show in my personal credit report if I accept it ?

  41. Independent Contractor here. Received $40k EIDL….work is slow which is why we applied. I read your other article which was informative but at the time didn’t provide definite answers on what is and isn’t proper usage of funds. I’m an adjuster who applied to help me get through as we were slowed due to COVID. I work from home…recently purchased a new vehicle I use for business…I use my income for personal uses. Can I pay my mortgage? Car payment on the vehicle? What about utilities? What about groceries? These are items I pay for directly with my income…which is much lower due to the pandemic. Thanks for the info! Best I’ve found in all my searching. SBA does not provide any info and most accountants have no idea and (mine included) will not provide “concrete” answers.

  42. Hi I have taken out the loan for 1K will that show on my credit report to the 3 credit reporting agencies?

  43. Me and my husband have LLC, we work as a independent contractor 1099 tax, no employees, no payroll. Do we qualify? We don’t give ourselves paycheck either. Still qualify?
    Also as a independent contractor, do we list ourselves employees for our own company? Bank told us no we don’t and since we don’t pay ourselves, we don’t qualify!

  44. I did my application july 2 and got a email July 11 saying it’s been processed but July 13th i get a update And it says it’s no more funds .. So does that means I have to wait for available funds ??

  45. i got $3000 SBA EIDL loan. Its repayment term is up 30 years. could you please tell me whether I will have to pay a penalty if I repay the entire the SBA EIDL loan early?

  46. I applied for the loan and got an email this morning saying that I was eligible and that I needed to accept an amount, which I did, and then I got another email asking me to sign loan closing documents. If I don’t want the loan, and just want the grant, should I just wait and see if the money gets deposited and NOT sign the documents for the loan, or have I disqualified myself by accepting the loan amount? None of this grant vs. loan stuff was very clear, I hope I’m not losing out on the grant.

  47. Thank you for this! Very helpful. I’m an actor and was very interested in the grant. After applying I received the $1000.

    My worry now is the loan I have been approved for. I am not interested in it though today I received an email saying
    Our records indicate that you have not taken the next steps to complete your SBA Economic Injury Disaster Loan application. These steps are necessary to continue to process your application.
    Failure to complete these steps will result in your application being withdrawn.”

    Is that pertaining to the loan itself or the grant as well?

  48. Hi, I want to pay my EIDL whole this time. Should I still pay with interest of 3.7590%? And how can I pay my debt just through online?
    Thank you!

  49. Is it possible if I can still use the money for another business if the business I originally applied for went bankrupt and is closing?

  50. Mind was declined due to incorrect information for bank. I finally speak to rep. To correct how long will I get responses.

  51. I applied for the EIDL loan and I am eligible for 16,500. Which is the loan. How come they didn’t mention anything about the grant. I checked the box for consideration of the advance, but they approved me so quickly

  52. Hello! We received the PPP and already funded..we’ll be using the entire loan for payroll. We recently decided to move forward w/ the EIDL to see what we could get, they’re basically pushing us to get it, its $40000.00 I’m not sure i want to move forward w/ this…i was told we could use this for payroll after the PPP is exhausted, has anyone else heard this to be true?? Also, is there a better breakdown of what “fixed debts” could be? We have a vehicle loan That’s a fixed payment’s registered to the business, I couldn’t find anytime specifically about this..but i’m thinking its not allowed.

    One last question, i’m just worried about the amount that we would be taking, it basically States that this money is to temporarily help due to the disasters impact, what if we don’t use it all in the next few months, or year… And we have leftover loan money, are we still able to use it in the future for those times if technically we are not being impacted by the disaster any longer?? I just don’t want any unanswered questions regarding the funds being used. Should we request a lower loan amount?

    Thank you for your guidance

  53. Hi I filled the application out for the SBA, I recieved an email stating that the SBA EIDL Loan was declined do to unsatisfactory credit history. Does this mean I don’t get the advance as well? Or that is just for the loan?

  54. I am an independent contractor. I selected 1 for the number of employees. I was counting myself as an employee because i work for myself. Now I don’t know if I will be approved. I misunderstood that i believe. I have zero employees. What do i need to do?

      1. I recieved a acceptance offer and I accepted it was 2weeks ago how long do it take to get approved?

  55. I was approved for a EIDL loan of $103000. We thought we would only need &65000. Which was approved and paid.
    No it looks like we may need the balance of the total amount.

    Is there a process for this .

      1. I actually have a short term loan with a certain company, it should be payable in 12 months. Now I was approved by SBA thru EIDL. Can I payoff my short term loan with my EIDL funds?

  56. Gerri,
    I have major confusion as to what to do next. I applied in March and received the EIDL just a week ago in June. Before that was completed my accountant told me I should have applied for the PPP which I did through the local credit union. That is approved also but not yet funded. Now as I am reading more and more on them my confusion grows. I am a self employed Realtor (independent contractor with a national company). She said the EIDL can only be used for things that I wouldn’t qualify for. 90% of my annual income is commissions from sales of homes. I don’t take “payroll” as they are just deposited in my normal everyday account and used to pay household bills. My income has only suffered slightly unlike what was expected when this all started. I am now in need of using some of the funds (they are so far sitting in their own account and nothing done with them yet). Can I simply transfer funds to my other account and call it payroll or do I need to break it down to specific items (vehicle payment, house payment, electric, etc..). I understand the PPP and EIDL cant be used for the same things, so should I just use EIDL for expenses and PPP for payroll when I get it??

    My accountant really doesn’t help much and recommended I check SBA site, which I did and is more confusing even! Or should I just return the EIDL and survive on PPP alone? The EIDL makes a nice cushion but no sense in keeping it if I cant use it.

    Any help is appreciated!

  57. Hi what can I do in regards to the grant.. I never received the funds but I spoke with a representative who said they were sent but to my chase bank and the account number was for regions. I’ve contacted both banks and nothing was received. What can I do?

  58. I Accidently Accepted The Loan Today Thinking It Was The Grant And They Have Already Deposited It To My Bank . Sba Told Me To Just Send It Back In Check Form When I Get It , But My Question I Forgot To Ask Was Will I Still Receive My Grant ?

  59. I am in the process of purchasing a new van for my small business. The terms of the EDIL specifically state that I cannot purchase a “fixed asset” such as a vehicle, however, can I purchase a vehicle through a credit union and make the payments using the EDIL loan or pay the sum in full using the EDIL LOAN? The Vehicle is a commercial business vehicle and only used for the business purposes. I am unable to add the expense of the vehicle to my current load. The EDIL would greatly help my business in this aspect, because I don’t need any inventory at this time due to a halt in sales. I don’t want to break the strict terms and conditions. Thank you for any help.

  60. in Regards to IRS Taxes, Can i use the EIDL to Pay off or Make Payments to the IRS for Schedule C Buisness taxes owed, or taxes yet to be filed, for the years 2019 Q1 of 2020, or Q2 of 2020? All of which are not yet filed but I will owe.

    1. Jay – The SOP (page 75) states under ineligible uses of proceeds: Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations. If you have questions we recommend you ask the SBA or one of the resource partners in the article.

  61. Hello, have questions about how I can use the EIDL. Answers are vague at best online and after waiting 2 hours to speak to the SBA i was shocked to discover they won’t answer any specific questions about how to properly apply the EIDL funds, and really aren’t even sure themselves .

    I am a traveling expo/convention seller. Conventions and large gatherings are all closed with no hope in sight. I am now sitting on a large amount of unsold inventory I purchased using A previous PayPal based capital loan through my PayPal business merchant account last year. All of my business purchases and sales are done using my Paypal Business merchant account, PayPal takes 30% of my daily sales automatically to pay back the capital loan.

    In regards to fixed PayPal business debts, credit lines, and working capital debts.
    Am I allowed to LARGELY PAY DOWN the Principal balance(s) of my current outstanding PayPal business credit lines/PayPal business debts/PayPal business capital loans using the EIDL?
    Am I allowded to PAY OFF IN FULL these outstanding PayPal debts Using the EIDL to avoid accumulating interest on them?
    If not,
    Am I allowed to make ANY minimum monthly to my PAYPAL capital loan / credit lines using the EIDL to avoid accumulation of interest?

    Would this be considered accounts payable or fixed debts?

    Thanks for any help, Gerri, you seem to know more than anyone about this including SBA Employeess. We GREATLY appreciate your time and responses.

  62. Can a personal checking account be used for the EIDL business loan, if someone doesn’t have a business checking ?

      1. Hello, still confused I revived a loan from the SBA and I’m a sole proprietor will this loan go on my personal credit. I’m asking because when I go to buy a house I don’t need this loan showing up and affecting my DTI. thanks

      2. I received an inquiry from Experian “Business Loan Inquiry” US SM BUS ADMIN ODA got a copy fo your Experian Credit Report. My FICO Score has decreased by 3 points.

      3. Hello.
        My loan EIDL was approved. I signed electronically same day (yesterday).
        How long it takes to get disbursement in my bank account?

        Thank you

        1. Hi.

          Have you received your loan yet?

          If yes, when exactly did you receive it please & how long did it take them to pay you after you were approved for the loan?

  63. WHAT if someone does not have a business checking account, can they apply using a personal checking account for the EIDL business loan ? A colleague of mine is having this issue.

  64. How would I go about returning the loan. I have not spent it and don’t want it anymore. Please help.

  65. Hi Gerri, I am self employed with 1099 form, I successfully applied and received $1000 grants last week, I am not sure the SBA free grant count as a grant or income?
    I am also receiving PUA benefit, I need to file weekly to PUA. in the weekly question like this to answer yes or no , how can I answer correctly– 1) any type of private income protection insurance during this week? 2)any amount as a supplement unemployment (SUB pay)? 3) were any amount payable to you from any retirement ,pension or annuity under a public or private plan/system?

    1. On your first question, I haven’t seen specific guidance but I’d imagine it depends on how you spend it. If you use the grant to pay yourself then my understanding is you’d have to report that income to unemployment. However, you don’t have to spend EIDL on payroll. There may be other business expenses that you need to pay that you could use it for and that may not affect your unemployment. Ultimately you’ll need to check with your state unemployment office for specific guidance. (I don’t know the answer to your other questions. You’ll have to check with unemployment.)

    2. Hello, I am in your same situation, could you inform me if you got any unemployment response when you request your payment afther the grant, thank you so much.

  66. I only got approved for 3000 loan that I am NOT gonna accept . I have 9 employees. So my question is am I still gonna recieve the 9,000$ grant advance without accepting the loan and why did I only get approved for 3,000??? Thanks

    1. Hello Eric. I only got $1000 loan approval and no grant for my 3 employees….Not sure what to do

  67. Hello, My question wasnt answered. I understand that there is no prepayment penalty for paying the loan off early. But I would like to know will I still be charged the 30 year total finance charges or will the finance charges decrease.
    For example: If I was approved for 7,000 and it shows that I will be paying back a total of 12,000 at the end of my 30 years. Can I increase my monthly payment amount to pay it off early and not have to pay the entire 5,000 finance charges or will I still be responsible for the 5,000 no matter if I pay it off early?

    1. That’s a great question Cee! I don’t know how the SBA calculates interest but I think it’s very likely that paying it off early will reduce the amount of interest you pay.

  68. Hello Gerri,

    I actually have 2 questions for you. First, how long does it take on the average currently after successfully submitting your EIDL application online, to get the 10k advance grant, or is this now added to the total loan amount approved and paid once? Secondly, is there a time frame of receiving the full loan amount after docu-signing loan agreement document? Thanks and I look forward to hearing from you.

  69. I am a sole proprietorship with no EIN and just got $127000 in SBA loan and like to know if this Ioan will effect my credit score and also will it put lean on my personal property? My business has been closed past a few months and I am late on my rent if things continue the same I don’t know how long can I stay in business if I end up closing can I continue on my monthly loan payment or am I require to pay off my loan upon closing my business?

    1. Sara – Collateral is required for loans above $25,000. We’ve been told by sources we consider reliable that the SBA will be filing a UCC-1 filing which is a fairly broad lien on assets. However we were also told that would not include personal real estate. We’d recommend you read your loan documents to confirm. (There is no personal guarantee for loans below $200,000.) We have not seen any guidance in terms of what happens if you close your business, but since this is a government loan we’d imagine the SBA would be happy for you to continue to pay it off if your business fails. You may want to meet with your accountant, an SBDC advisor or SCORE mentor to get some advice before you decide how to proceed. It certainly can’t hurt to get some expert advice. Hand in there.

  70. I’m wondering is there a limit on how much we can “repay” ourselves with this loan for lost wages, I’m self employed…and it says show receipts, do we just save our receipts and turn them in at some point? (: thanks so much!

    1. Laura – the SOP simply states that EIDL can’t be used to pay: “Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant.” So you may want to look at what you’ve paid yourself in the past as a guide. You don’t turn in documentation automatically but you do want to keep track of how you spend EIDL in case the SBA wants to review it in the future. You might put a note “EIDL” on those expenditures in your accounting program, keep a file with documentation, or even keep a spreadsheet for example.

      1. My SBA loan I applied for it said approved for a while not my status has change to “ funds have been disbursed to your account “ I check my bank and have not received anything it’s been two days since that what’s the issue will I receive my money anytime soon

  71. Can some of the loan be used to fund a new business or only the business that the loan was processed for?

    1. Beth – EIDLs are designed to help businesses survive a disaster. They don’t appear to be designed as start up loans. I wouldn’t recommend you spend funds that way without consulting an official source such as the SBA.

  72. Hi Gerry,

    I applied for an SBA loan and got approved for $1500 four days back. I haven’t signed any loan documents so far. After that, around three days back, I received $1000 SBA Grant in my account.

    Now, my question is, if I sign the loan documents, would I receive an extra $1500 or just $500? What I mean to ask is, would SBA deduct the $1000 grant that they have already deposited in my account from the total approved loan amount?


    Des R

      1. I only wanted the grant, which I thought would be $10,000. So I applied for that. Because I am a sole proprietor with no employees it turns out my grant is limited to $1,000, which I received last week. Now the SBA is asking that I sign loan documents. But I don’t want the extra $9,000. If I don’t sign the loan documents will the SBA take away the $1,000 grant?

  73. Is the purchase of a vehicle included as “working capital”? In other words, can I purchase a vehicle with EIDL loan money?
    Thank you.

  74. Hi Gerry,

    I applied for an SBA loan and got approved for $1500 four days back. I haven’t signed any loan documents so far. After that, around three days back, I received $1000 SBA Grant in my account.

    Now, my question is, if I sign the loan documents, would I receive an extra $1500 or just $500? What I mean to ask is, would SBA deduct the $1000 grant that they have already deposited in my account from the total approved loan amount?


  75. I’m apply EIDL And got $1000 grant, but I’m just self-employee. SBA offer $11500 loan approved for myself with 3.75% and 30 years term
    My question that wrong for myself have the loans for that?

    1. Jessica – I’m not sure I understand your question. The loan amount is calculated by the SBA based on economic injury. If you included truthful information in your application and they approved you for that amount and then I see no reason why you should be concerned just because you are self employed. Is that what you are asking?

      1. I received my approval but have not signed closing documents and would like to lower the amount to 25k, can I still do that?

  76. Hi Gerry,

    you said in another your article that:

    “7. 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. Federal Deposit Insurance Corporation (FDIC) is not considered a Federal agency for this purpose;

    8. Payment of any part of a direct Federal debt, (including SBA loans) except IRS obligations. (Additional requirements regarding the payment of federal debt start on page 75 of the SOP.)”

    Meanwhile, some people whom I know took EIDL and paid off their car loans which loans ( lenders were not federal bodies). Thus, my question is: Do your words mean that it possible to pay off car or personal loan bu the EIDL funds?

    Best Regards

    1. It’s my understanding that is not acceptable use of funds. If the SBA audits the file it may cause trouble. Please contact the SBA for specific guidance, though, as I cannot speak for them.

  77. I’m a sole proprietor LLC. I applied for a $25,000 SBA Disaster Loan Assistance. I’m confused what I can use the SBA loan for. I’ve paid all of my bills up to this point but I don’t know what the rest of the year will bring. I was planning on buying a used business vehicle this year but since sales are down I can’t afford to pay cash for one but desperately need to replace the old vehicle soon. It is essential equipment for deliveries and transporting our inventory. Can funds be used for a newer/upgrade vehicle?

  78. Hi Gerri, thanks for the great info! I applied for and received the EIDL loan for a business I own. I now have buyers who are interested in buying this business. Is the EIDL loan assumable, to your knowledge?

  79. Helo, I have a non profit. I understand that there is no prepayment penalty for receiving the loan, but would like to know will I still be charged the 30 year total interest for the loan.
    For example: If I was approved for 7,000 and it shows that I will be payoing back 12,000 at the end of 30 years. Can I pay back the loan before the 30 years and not be charged the entire 5,000 interest? Or will I still be responsible for the 5,000 no matter if I pay it off early?

  80. if i applied for the loan and it sent me an email saying that i needed to update my advance request with correct information but instead i just filled out the application over will it affect me getting the grant

  81. I received an EIDL loan approval amount and signed the closing documents. Does that mean the loan is fully approved or are there more steps in the process? Also, will I still get the grant even if I accept the loan?

  82. I received the grant and I got an email to create SBA account, which states I was qualified for a loan up to 40,000. I verified all my info and bank info and now it’s states loan application in processing. And final step is signatures that is not yet highlighted for me to click. Do this mean my loan will be approved?

  83. Hello, I am considering applying for EIDL loan…. My question has to do with this line that I read in one of your other articles as far as what EIDL loan can not be used for:
    “Disbursements to owners, partners, officers, directors, or stockholders, except when directly related to performance of services for the benefit of the applicant”

    Based on an accountants advise many years ago, our few partners each earn a “reasonable salary”, and then we distribute profits on a monthly basis (if any)…. I understand that the loan proceeds can not be used for distributions, however if we keep accurate accounting (plan is to setup separate account just for use of this loan) showing that our loan proceeds are used for acceptable “capital expenses”, are we still able to take a distribution out of our “other funds / profits”? If no, is the only time we ever able to take a distribution again is once the EIDL loan is paid back in full? Also, can you clarify the “directly related to performance of services for the benefit of the applicant” line a bit. Thanks

    1. The SBA doesn’t go into that level of detail but my understanding is they are trying to avoid these funds being used to enrich owners. I can’t elaborate beyond that language which appears on the Standard Operating Procedures for Disaster Loans.

  84. Another item you note that IS a problem during this COVID19 —

    you write:
    How Can I Get Help With the Application?
    You can contact the SBA by calling 1-800-659-2955 or by email at Warning: There may be a long wait time.

    Another great option is to contact your local SBDC, Women’s Business Center or SCORE office for free assistance.
    You may also be able to hire a professional to help you, though the SBA emphasizes that you do not have to pay anyone to complete this application.

    OK – yes I called SBA…waited over 30min only to be transferred to a line that was horrible reception. I heard only every other 4th second of conversation. Not enough to even grasp what was said…they HUNG up on me after less than 1 minute.
    SO— I tried to call Chicago “SCORE” – CLOSED! Suburban SCORE in Palos Hills – CLOSED! Then tried SBDC – – CLOSED!


    Then finally was FORTUNATE someone answered at Womens Business Center in Chicago! They said they will send me a form to answer questions – then they scheduled a “phone call conversation” for Thursday at 3pm.

    Thats good but WOULDN’T it be “better” to have online answers to questions on EIDL SBA form – –just like is done for IRS tax forms!! WHY HASN’T ANYONE DONE THAT???


  85. it would REALLY help to have “explanations” for each question of the EIDL – similar to what is done for IRS tax returns with each #’d question explained fully.
    This is because not “all” small businesses under sole proprietorship have the “business trade name” . For instance WHAT TO DO FOR “DBA” type businesses where we are independant contractors working for rideshare businesses? So an EXPLANATION for each blank to be filled in ESPECIALLY for those with REQ’D RED ASTERICKS would be VERY HELPFUL. NOWHERE DO I SEE SUCH LIST….IT WOULD SAVE MANY PEOPLE LOTS OF TIME & ESPECIALLY AT SBA answering calls.

    1. Agree. Keep in mind though these loans are usually made in limited areas for limited periods of time, and not nationwide. My sense is the SBA is just trying to keep up with the volume.

  86. Do you know how many days we have to sign our loan documents? We are trying to decide to go ahead or not…

  87. Do you need a business bank account in order for your eidl grant to be deposited because I have a personal checking account at this time?

  88. Is there a personal guarantee required now or in future for the 150,000 loan. Can i use the EIDL proceeds for payroll if i plan to use forgiveness in PPP. My total payroll for 24 weeks is more than what i received in PPP.

    1. Sam the personal guarantee is waived for EIDL loans of less than $200,000.

      Your second question is an excellent one. Generally you are not allowed to double dip with EIDL and PPP and use the funds for the same expenses. But you’ve correctly observed that the new PPP 24-week period for forgiveness doesn’t match the loan amount (which was based on roughly 10 weeks of payroll.) So the short answer is I’m not sure. I’d suggest you contact your local SBA office and see if they are able to answer questions and/or contact your Small Business Development Center (SBDC) or SCORE office. SCORE also offers real-time mentoring online during certain hours.

  89. I was told by the SBA that the grant is an “advance” and it is not taxable, it does not need to be paid back & no records are needed or need to be kept as to how the money is spent. It is not part of the terms and agreement conditions of applying for the loan. The terms do not apply to the “advance” . It only applies if we are getting the full loan. If some states don’t ask about grants & loans, then how is one liable to report them. We are only liable for what we agree on in the terms & conditions. A $ 1,000.00 grant in most cases will run out so quickly it won’t even matter. Most likely if it does, it might only affect a week or two. Your thoughts??

    1. Normally grants are considered taxable. See this guidance from the IRS as one example. It’s very possible they don’t intend for EIDL grants to be taxable but it’s not in the legislation and we have no written guidance from Treasury/SBA like we do for PPP. I raised that question in this article. I’ll be thrilled when we finally see an official answer on this – I just haven’t found it yet.

      (Loans are not taxable generally unless they are forgiven. PPP is an exception there.)

  90. Will this loan reflect on my personal credit report
    Since it’s for my business ? Will it go against my debt to income ratio?

    1. If i have recieved a loan offer..will i still recieve the Eidl grant if i decline the loan?? I thought i was supposed to recieve the grant pretty much immediately..but have yet to recieve anything..but i did recieve my loan offer tonight..

  91. Hello. I have been unemployed since ce 3/17/20, and I just been able to get through with Unemployment. I still have not received an unemployment check. I called them several times.. I need to pay some Bill’s and eat. How will I be eligible?

  92. My loan for $2,900 was approved. How long until I receive the funds and what do I need to do to get the grant if I checked that I would need it?

  93. Hello,If I already received an EIDL for 150K and now I see that his loan amount is not enough to survive my business, can I ask for incresing the limit or aply for another EIDL?

  94. Do I have to claim the the $1000 SBA EIDL grant if I’m collecting unemployment insurance? Since it’s a grant I wasn’t sure if I need to report it to unemployment.

    1. Joanne – Are you using your EIDL funds for payroll? If not, then it may not matter. But ultimately you’ll need to ask your state unemployment office. Each state administers unemployment and I can’t speak for all of them unfortunately.

    1. David,

      Are you using your EIDL funds for payroll? If not, then it may not matter. But ultimately you’ll need to ask your state unemployment office. Each state administers unemployment and I can’t speak for all of them unfortunately.

  95. Hello,
    I am currently in the process of buying a new home and I was approved for the SBA EIDL with average credit scores and closing 5 weeks away. Obtaining new lines of credit while you are applying for a mortgage loan is essentially forbidden. Will the EIDL show up on my personal credit report? Will accepting the loan affect the mortgage process?

    1. I can’t speak to the mortgage process – you will need to ask your loan officer. (When you talk to your loan officer let them know this is a business loan not a personal loan. And there is no personal guarantee for loan amounts below $200,000.) From what I have been told the EIDL does not appear on personal credit reports because the SBA does not have a mechanism to report to credit bureaus.

      1. the SBA inquiry came up in my credit report. I’m in the middle of a refinance. I had to explain that yes, I opened a line of credit for my business. The loan officer took note and now everything is with the underwriter. I’m keeping my fingers crossed

    2. I’ve received an email that I have multiple applications in process that one of them will be withdrawn while I’ve filed just one application which is mentioned in the email that is withdrawn.
      What should I do in this case?

  96. My husband and I own and operate a commercial office cleaning business. We are the sole employees and work the business out of our home. I applied and received funding for a EIDL loan but just needed clarification on how the funds can be spent. It says mortgage payments but no long term debt, confusing. Also since we are using part of our home for business can we use the money for all our mortgage, utilities, etc or only the percentage used for business? Thank you for a very concise article!

      1. Hi i qas approved for a $26,400 loan. I want to stay at $25k or under to avoid alot of the hassle of the terms of getting over the $25k amount. I was told i can ask for less but not told how to ask or request a decrease in approved funds. Do you know how?.

  97. I have questions on what the EIDL loan can be used for. We were approved, have no employees. Just a small cleaning business. We have lost income to ourselves as no one is wanting us in house to clean. Can $ be used to pay us what we normally would have made? To pay IRS taxes for the year?

  98. I have been offered a loan of $27,500, for various reason I would like the loan to be only $24,000 how do I get the SBA to lower the amount ?

  99. I received my EIDL loan money, but did not receive any instructions as how to make payments on it. I want to start immediately to make monthly payments, but no info as to how to do this.

  100. I received an EIDL for 26,500. I was told that to avoid the collateral, I could pay the overage of 1,500 back early. Are you familiar with this. I knew nothing about the collateral until later.
    Any information is greatly appreciated.

  101. After 1 yr when we start paying back, do we have to show SBA bank records about what the money was spent on?

  102. Thank you for the information. What I’m still struggling with are the specifics of what I can spend the funds on. I don’t want to show up at tax time to find out that my new equipment wasn’t allowed to be purchased with this $. From what I’ve gathered, it cannot be used for new equipment. It can be used for “supplies”…which is a pretty loose term in itself & past business debt.

  103. Thanks for this… it’s all so confusing between the loan/grants. I own a small business and just received my approval for a $6,000 Disaster loan. Even though it’s a loan, it’s my understanding that it can be forgiven. How do I know if it will be forgiven or not and, if it’s truly just a loan that I need to start making payments on in 1 yr while the interest continues to accrue, should I just keep it and pay it back in full to avoid the 3.75% interest? Is there a penalty to pay it back early?

  104. I can’t say how much I appreciate what our Country is doing for small businesses. Even if I am not able to get a loan I will value the measures that have been taken to help hard working Americans. Thank you Gerri!

  105. I applied back on May 2nd. i never got my 10k advance (a bunch of my friends already got their eidl advance). i got an email yesterday to register an account and says i am eligible for up to 120k loan @3.75%.

    1. Will i still get the 10k grant? maybe via check or something (since i think my routing number on last years tax form was screwed up)
    2. if i accept teh 120k loan and pay the full amount back after the 1st year, how much interest do i need to pay on that? is it just the 3.75%. It said monthly payments of $550 for 30 years which ends up being 198k

  106. I received sba eidl loan today.
    But..I decided to return this loan because I decided to close my business. I know that there is no prepayment penalty. Now where and who should I return this check to?

  107. Does accepting the loan affect my personal credit? Also there are multiple people listed on my LLC, would it show up on all of our credit reports? Or just the person who signed for it?

  108. If we opt to repay all or a portion of our SBA EIDL loan early will the interest be prorated in any way? For example, if we are able to recoup all lost revenue within the year from the note issuance and decide to pay off the entire principal balance on our first payment due date will that be possible without any interest accrual?

  109. Hi,

    Thank you for all useful information. One thing I can’t find clear answer – I’m sole proprietor ( videographer). After the virus related restrictions my business went down to 0. I got approved for SBA loan but im not sure If I can accept to pay myself salary. If yes – how do I document how money was spent? Write myself a check?

  110. yes i was approved for a EIDL LOAN And I’m a sole proprietorship,without employees I also travel
    I can have my loan forgivene??

  111. I agree with Sangshin, I learned more from this than SBA or my lender. Thank you.

    I did receive PPP and the grant, now have been approved for the EIDL loan, but for now I am not interested in taking it. I planned to leave it sitting there, but is there something that I need to do about the grant money I received? Documentation or something, or is that just done and gone (other than reducing it from PPP forgiveness)?

    Thank you!

  112. I was approved for both PPP and EIDL. I understand the requirements for the PPP, but my questions are on the EIDL. Can I use the EIDL for paying my 2019 taxes? Since I was unable to work, I do not have the funds to pay my taxes. Also, are the interest accrued on EIDL tax deductible?

  113. Do the EIDL loans show up on your personal credit and affect your personal credit score? I know they check your credit and that shows, but once approved and you accept the loan, the loan will not show on your personal credit report correct?

  114. Hello Gerri,

    I was approved four my SCorp business. I am in the process of purchasing a home. I know the Experian credit inquiry occurred. Will the loan amount show on my credit as a new account or not because it is under the personal guarantee of 200k?

    Thank you

  115. hi Gerri,
    thank you for all the valuable information! i received the EIDL last week and am still waiting on PPP….i am a sole prop and will use PPP to pay myself once i receive it.
    can i use the EIDL to pay car insurance (90% business use in 2019), tax payment for 2019 and estimated tax payments for 2020? also, i am using a portion of my home for business, can i use the EIDL to pay to for part of my utilities? i guess i am ultimately asking if i can use EIDL for all expenses that i can deduct on my schedule C or are there exceptions? thank you!

  116. Hello Gerri,

    Thank you very much for your time writing this great article!
    This should be on SBA website, much better explanation then SBA Q&A!
    I just received an email from SBA to enter a loan amount up to an amount quoted and verified our personal information and status now shows “Your application is being processed”
    I am sure if this means I am fully approved for it or not.

    1. I just means they have it and are going over it. After that is done, in approximately 10 days you should receive an email showing that you were approved or denied .

        1. Hi I reserved 9500 eidl loan application status approved
          But I submit the bank accounts under my wife personal name
          The system rejects it.
          What’s should I do. Thank

  117. I applied for this and only got $7800. Not sure why it was so little. Can I apply for it again legally?

  118. I filled out the application in March and received a $1000 grant since I am one employee in my business. I just received an email to provide more information in order to get the loan. Since the original EIDL grant part of the loan was supposed to be $10000, If I took out a loan for $15000, would $9000 of it be considered a grant or would all of the loan have to be repaid? Thank you.

  119. I applied for the SBA EIDL loan. I was just wondering can you receive unemployment benefits and the loan? Thanks

    1. Mellisa – We haven’t seen guidance on that. It seeems that if you’re using EIDL to pay yourself payroll then that would reduce unemployment or make you ineligible, but that’s just my guess not legal advice. EIDL can be used for purposes other than payroll.

  120. We applied for a $2M EIDL loan and given the SBA directive to cap at $150,000, just learned we have approval for a $150,000 loan. There are bills being presented that could provide additional funding for EIDL Loans. If we accept the $150,000 loan, are we eligible for additional funds if congress provides more money for this program?

  121. Can you accept the EIDL if you already receive a City grant and private grant? We got the approval and we just need to sign the docs.

    1. We recommend you notify the SBA that you are receiving the grants as they may reduce the amount of EIDL for which you are eligible. You can contact SBA by calling the SBA Disaster Assistance hotline.

      1. How do I know if is a grant or a loan , I got approved for 14000, I wander is I just change the amount to 10000 si I don’t have to pay it back , is how that works ??or I still have to pay it back??

        1. Griselda – The grant (advance) you don’t have to pay back is $1000 per employee to a maximum of $10,000 if you have ten employees. The grant is typically deposited into your bank account with the notation EIDG (G for grant) and most business owners have received it before the loan approval. It sounds like you were approved for a loan which does have to be repaid. If you’re not sure why you didn’t get the grant (did you put zero employees on your application perhaps?) then you can call the Disaster Assistance hotline.

  122. I received a SBA disaster loan due to Covid-19. I am wondering if I can use this loan to pay Credit Card debit. I can not find a clear answer on what this loan can be used for. I am a self-owned business…LLC and am the sole owner and worker. I use the income from the business to help pay for the business as well as all living expenses. I do not want to end up in hot water for using it in a way I shouldn’t. Please advise. 

  123. Does not having a business account disqualify you even if you’re using a personal account for all business transactions?

      1. Yes!!! My app was denied because of inaccurate info. I put a Personal bank account and was told by SBA that my bank name had to be in my business name and everything had to match including business address…no p.o. boxes. SMH

      2. If I used my personal Checking account For my LLC I was told by peers it will be denied can you inform me if this is true

  124. Thanks for the information. What if we applied for our non profit, got the grant, got approved for the loan, and then after looking at the documents, realized its just not a good solution for us? do we just not sign the documents and let the two months run out? I don’t see where I can decline the loan. And then what will happen with the grant?

    1. I would suggest you call the Disaster Assistance hotline (in the article) and ask their guidance. If you get an answer about how to return the grant please share!

    2. Hi,

      I received a SBA eidl loan for under $20,000. I am a dog walker. I do not have a physical presence. Can I use the money to pay my personal rent?

    3. Did you ever get an answer to this question? I have the same question. I want to keep the grant and decline the loan, what do I do?

    1. Samantha, I can think of three possible scenarios. Did any apply to you?

      1. You listed 0 employees on your application.
      2. You applied early before the application which allowed you to request the grant was available.
      3. You did not check the box on the newer online application that allowed you to request the grant.

      1. I’m not very good at this technical stuff I’m a self employed owner operator truck driver and I have a SBA loan offer for $91K I would like to save the majority of the money just in case of a new outbreak of covid19 I haven’t pay my mortgage for 3 months I work sometimes and I would like to use that money to get out of debt irs and credit cards on my name and use some of that money to invest in a wealth management company can you please explain what is ok to do or actually none of that is allowed? Also some home improvements as well thank you.

      2. Retype: Hello, I recently applied for the SBA Disaster loan Monday for 2000$ but did not have the box checked for the 10,000 as I thought it was optional in order to get the bigger loan of above 10000. However, I applied again so I was wondering will I still be able to get the SBA Disaster loan for 2000? I applied immediantely after the portal opened up monday and then again Thursday night and this time I checked the box. Application successfully submitted on the website on my second try

  125. I applied for EIDL loan on 3/30/2020 and I just received 2,000 $ on 04/23/2020. DO I still can get 10,000 EIDL loan as I have 2 employees or this 2,000 $ is all I got. Thank you

    1. Masen – You may still be offered an EIDL loan. Keep an eye out for an email from SBA. From what we’ve heard from other applicants it may take a couple weeks or more.

  126. Hi
    I sent in my EIDL application on March 30
    And received my closing documents today May 16
    But have not received the $10,000 advance as of yet

    1. Michelle – They changed the grant to $1000 per employee. The grant usually comes before the loan. As I mentioned to Samantha, I can think of three possible scenarios here:

      1. You listed 0 employees on your application.
      2. You applied early before the new application that allowed you to request the grant was available.
      3. You did not check the box on the online application that said you wanted to be considered for the grant.

      I would recommend you contact the SBA Disaster Assistance hotline to find out what happened. Let us know if you can.

  127. I applied SBA Disaster Relief Fund for my business from April 4, 2020. It has been 7 weeks since that day but I don’t see anything FUND. Why do my application take too long? All of my friends have businesses, and they applied for it received after just 3 days or 2 weeks later.

      1. Yes, We did. But we didn’t see anything. How can I check my status? It is so frustrated. It is over 7 weeks. And I cannot understand why most of my friends were applied at the same day then they got it. Is there anyway you can assist me?

  128. I received from the sba an email approval for the eidl loan at 3.75% interest. Is the EIDL loan forgivable? I have not received anything (info/money) regarding the EID grant? Is the EIDL and EIDG different? What can I do now if I want the EIDG and not the EIDL?

    1. No the loan is not forgivable. I don’t know why you didn’t get the grant. If you see my response to Samantha in the comments I proposed a few possible scenarios. I’d recommend you call the SBA Disaster Assistance hotline and see if you can find out why you didn’t get the grant. Please let us know what you learned!

  129. I submitted an EIDL application on 3/30 and received an email to enter a loan amount up to an amount quoted and verified our personal information. Says processing with an underwriter. Last step is to sign loan docs. Does this mean we’re approved for the loan?

    1. It sounds like it to me Carol! You can accept less than the amount for which you are approved so if sounds like they are confirming the amount you want to accept.

      1. Carol, I just received the same email and did the same steps you did as well. I’m wondering, did you receive the funds? How long after, if so?

    2. May I ask, did you get approved? This just happened to me today and I’m so confused. Thanks!

  130. I see EIDL cannot be used for “expansion” of your business. What exactly does that mean? For example, I’m a traveling photographer. Typically I need money made during this time to pay for hotels, camera equipment, expendable supplies like photo paper & independent contractor payments. I’m also in desperate need of a new used van to travel this summer once events start back up in a few weeks.

    What counts as business “expansion” and what counts as capital and does it only cover items you’re already paying for? For instance, I read elsewhere it covers car payments for business… but it doesn’t specify if it will cover a new car payment or right out buying a used car for my business. It doesn’t specify if it will cover business operating expenses such as hotel rooms to stay while working (including AirBnB payments I’ve already put on credit) or even fuel for getting to the events. Can you touch on what, if I get this loan, I should likely be able to justify and what it is definitely not meant to cover? Thanks.

  131. I didn’t receive any grant money but am now signing my EIDL loan paperwork. I’ve already gotten my PPP.

    Does the fact that I will now receive an EIDL loan somehow reduce my PPP forgiveness (assuming I still spend the funds of different categories of expenses)?

    1. You must subtract an EIDL advance from your PPP loan for forgiveness purposes, but that’s not the case with the EIDL loan. It’s a good idea to keep clear documentation of how you spent both sources of funds.

  132. Great article. What happens if I go out of business in 6 months or 3 years ( a very real scenario for me) from now and cannot pay EIDL loan back ? I understand there is no personal gurantee but what is considered collateral ?

    1. Collateral is required (if available) for loans above $25,000. It may include available home equity. (Though I heard recently from a source I consider reliable that they SBA isn’t taking home equity as collateral for these loans.) If you get a loan offered for above that amount make sure you read your documents and understand the collateral requirements.

      1. How do we know what they are securing for collateral? My loan closing paperwork doesn’t list anything specific of mine, only things they “could” take.

  133. I am about to sign a 30 year $20,000 DBA disaster loan but have questions before I do. I own and operate a children’s Karate school as a DBA business. I was shut down by New York State on March 15th and may not be able to reopen till September. When I do open I will owe the Landlord $8,000 in back rent. What happens if I get the loan and still go out of business????? There is a good chance only few of my students will return. Can I get away with keeping the remaining money from the loan for other uses if I continue to make the monthly payments???????? Will the DBA require proof of how the money is spent?????

  134. I applied for the EIDL and PPP programs in march. The EIDL loan i originally applied on 3/26/20 with paper documents uploaded. I then reapplied on 3/30/020 with the fasttrack application. The fasttrac asked if you have been convicted of a felony in last 7 years, I put no which is true. On the original paperloan application it asked if I had ever been convicted of a felony and I was back in 1996. Does this disqualify me for the EIDL loan? I did get the PPP program and got funded, it states within last 7 years you are disqualified. Why would EIDL loans be different than PPP?

    1. EIDL is under the Disaster Loan program and PPP is under the 7(a) program. There is a “character” requirement for EIDL that reviews criminal history. This article discusses criminal history and EIDL applications. Please let us know what happens in your situation.

  135. We applied for EIDL and PPP. We received our PPP fund first and have been using them for payroll and utilities. We just got confirmation that we will be receiving the EIDL. I want to know if I can use the EIDL loan for payroll when the PPP loan is paid out in 8 weeks?

    Also..EIDL says the principal payment and/or interest are deferred for 1 year but is the interest accrued for that deferred year?

  136. I started an LLC in 2018 and have been under construction of my business with an Sba loan since July of 2019. The pandemic hit right when I was about to open my doors for my business. I have been paying a substantial amount of rent and mortgage interest since last year when construction began and have 2 employees. I have filed tax returns for 2018 and 2019 showing significant losses due to major construction expenses with no income as of yet. I do not have any income yet, as I was not able to open due to the pandemic. Will I still be eligible for the eidl loan without any income shown til date but substantial expenses due every month such as rent, mortgage, and utilities until the reopening occurs in my state?

      1. I applied for the EDIL and received the funds. I only asked for $5000 of the$9000
        Available. Now I realize that I could use the other$4000 as a loan. When the EDIL reopened for regular small business, I applied again. Just wondering if I can do that.

        1. Normally with EIDL there is a process where you can ask for more money. I’d suggest calling them and asking how to request more funds rather than waiting for a new application to be processed (and potentially getting rejected).

  137. I received a PPP loan and would like to cancel my EIDL loan request. What about the $1,000 advance I received. I was told that would be subtracted from the amount of forgiveness of my PPP loan. It appears that my PPP request amont was already reduced by this $1,000. How do I cancel my EIDL request? Thank you, AL

    1. If you already got the advance I am not sure there is a way to return it. You’d have to ask SBA that question. But you could subtract it from your PPP for forgiveness and simply pay back that $1000 to your PPP lender. (If you keep it, it’s a 1% loan for two years.)

    2. Hi Gerri
      I only applied for the EIDL grant and received $4,000 for each of the 4 employees we have. I’m at a loss to what loan or assistance to apply for next. Can I apply for the payroll tax credit having received the $4K grant?
      I have a little income coming in and have prioritized paying payroll and buying materials to manufacture our product. Have not paid any state or payroll taxes since they can be deferred and have not paid any long term debt ( credit cards). Thanks

  138. 10,000 showed up in my account, for EIDL, I had no idea I was getting it. How do I know if this is a loan or grant?

      1. I apply for a loan for my printing company and got $1000.00 . Can I apply for another loan for my rental property? Considering my renters are experiencing a hard

  139. The EIDL Is Basically Just A 3.75% Loan Right? How Does That Help Anyone? Seems Like The SBA is Taking Advantage Of A Plague To Make Profit. Am I Correct?

  140. The portal is so confusing. I have a s Corp and a small ranch. I made applications on both and received 1,000 on the ranch application. Is that it? Anything additional? I did receive a reject app on the S Corp even though it was made before the ranch application and there was no message indicating the portal was closed for S corps. When I made the ranch app it said only Ag apps were being accepted. The S Corp app made no such notice. Do I need to reapply for the s Corp app? I sweat in the sun and have essential duties. Live in a rural area with spotty internet. Am I expected to to sit and monitor the sba portal and pray to God that my timing is perfect? The rejection letter does not say if I need to reapply later? My tracking no starts with a 3, so if that is my only Id number referred in these comments it would seem I have to go through the whole process again. Nowhere am I asked for a lender or an amount. Thank you. Michael, drowning in Texas. Final comment … Economic relief is more than payroll.

    1. I’m sorry it’s so difficult for you Michael. I can’t speak for the SBA but if you are the only employee then my guess is you received the advance/grant. You may receive a subsequent email about the loan but for most businesses it is taking several weeks at least to hear back on the loan.

      As for applying for your other S corp I am not quite sure I understand your situation. I’m thinking your best bet may be to connect with your SBDC. They can help you for free. You can use the SBA local assistance locator to find help in your area.

  141. I have a question. I made a mistake when I filled the application for SBAD by covid19. I put the net amount instead of gross amount appears on my income tax. How may I correct this information. May I reapply? Thanks

    1. Walter – You will need to contact your lender if you want to change your loan amount. If you file Schedule C, though, you are supposed to use the net profit from Line 31 of your schedule C.

  142. I put in my apps for 3 of my small businesses on March 31st. All one after another.
    I had my credit pulled for the first one on 4/12 and then the next day $10,000 put into my account on 12/13. Within 24 hours I received a email on 4/14 to set up my account online, sign some docs and accept the offered loan amount. Another 5 days for closing docs to arrive on 4/18 to sign online and then money for the loan put in my account a 6 days later on 4/24/20 1,2,3 and done.
    Now the other 2 small businesses (Which were put in within 10 minutes each of the one above), are STILL not approved or denied? I did get a hard credit pull for those both on 4/20… and on 4/21 they put $10,000 each in those business accounts…. But unlike the 1,2,3 above for the first small business. it has now been 18 days since the credit pull and the $10,000 going in those accounts and NO WORD EITHER WAY???
    I know it says it can take up to an average of 45 days (average from last disaster) but does anyone have any idea of if they will send a actual denial email if I am not being approved? or do they only notify you if you are approved?
    It is very nerve-racking! I need to plan about employees, healthcare and more on if I can afford to continue paying for these things, if I don’t get the other loans I have to reconsider how to move forward. Any thoughts?

    1. We have seen some applicants get rejection notices but as you point out it’s taking a while and many applicants are in the dark. Make sure you check your email spam folder (but watch out for scammers at the same time). The only other thing I can recommend is to contact your Senators and Representative in Washington as this is a federal program.

  143. I made a mistake while applying for my loan by leaving 0 instead of 8 in the employees section. Got $1000 for advance. Wonder if I could reapply now?

    1. Jennie – Unfortunately the portal is closed to new applications except for agricultural businesses. But you could contact the SBA Disaster Assistance hotline to see if you can request reconsideration.

  144. Hello I recieved my EILD grant today I only recieved $1000. I should have recieved $2000 for myself and my dispatcher how can I correct this to get my other $1000?

  145. Has the SBA given any guidance on this specific situation?
    A person applies for the cash advance the first week it was available. Expected the amount to be deposited within 3 days. Obviously that did not happen.
    Same person applies for the PPP, and on the application answers “no” that they did not receive funding from EIDL cash advance, because at the time, that was true.
    Next, EIDL cash advance is deposited, let’s assume $2,000 for two employees.
    Next, PPP funds come through and are deposited, let’s assume $10,000.

    Question: How will the lender/bank know that the person did receive a $2,000 cash advance? Does the person have to alert the bank after the fact? Will the $10,000 PPP loan now only comprise of $8,000 forgivable because of the $2,000 cash advance?

    In this case, the person is coming up short. Expected $10,000, now only receiving $8,000 since they basically have to take the $2,000 cash advance received and pay the lender/bank for the non-forgivable portion.

    Is anyone else facing this scenario? Or are we all in a wait and see situation?

    My other question is if the entire $2,000 cash advance is used on rent and bills, and the entire $10,000 PPP is used on payroll, then will the cash advance still be subtracted from the PPP?

    Or is this a matter of the person tracking and proving to the lender that they were used for different purposes, so that the entire $10,000 can still be forgiven?

  146. If you receive the PPP grant and the $10k advance can you take the EIDL if it is available? PPP is for payroll March/April, so can EIDL be used to fund payroll after that period (I know they can’t be used for the same)?

    1. Phil, yes you can take the EIDL loan if it is offered to you. The EIDL can be used for cash flow or the following two months of payroll if you choose.

  147. I received the $1,000 EIDL advance but now have decided that I don’t need the loan. How do I repay the loan it or refuse it? And will the loan of $9,00 be considered income on my 2020 tax return, even if I return the loan right away?

    1. You can reject the EIDL loan or repay it without a prepayment penalty. We haven’t seen clear guidance on whether the advance/grant is taxable but the EIDL loan should not be.

  148. I was approved for EIDL but haven’t been funded yet. Before COVID, I was planning to purchase a home. EIDL was over $200k, so a personal guarantee is required on the loan. Will the EIDL amount be added to the debt to income ratio when I go to qualify for a mortgage loan?

    1. Keana,

      This is an SBA loan and generally they don’t appear on consumer credit reports. We don’t believe the EIDL for your business will show up on your personal credit but we can’t guarantee it won’t. You may want to discuss it with your loan officer.

  149. Hello – I received a 1000 deposit – which I assumed was the grant, but it was taken back out the same day. When I call the SBA they have no idea why this happened. Has anyone else had anything like this happen?

  150. We received our advance, what happens next? Will we have to sign loan documents before we receive our loan? Does this mean that we have been approved or declined? How will the SBA contact us moving forward?

    1. Lamont – it’s hard to say. What we’ve heard from others is that most do not hear from the SBA about the loan right away. It does not necessarily indicate an approval or decline. Check your email (including spam) for the next communication about a loan. There’s a lot of discussion about this going on in the
      SBA CARES Act Insights Hub on Facebook if you want to check it out.

  151. Thank you for the comprehensive compilation here – very helpful. I have a business that we contract with many independent contractors. As an owner, I am not a W2 employee, others are ICs, and one admin that is a W2 employee. The initial language indicated ICs were covered, and I listed them as such. I received the EIDL advance, and my impression is that the $10k is still forgive-able to cover damage costs without the same restrictions as PPP. Have you seen any clarifications or guidance on this. I know the SBA issued clarifications on the PPP, but haven’t seen for the EIDL.

    1. Tory – EIDL can be used to pay working capital expenses the business could not pay due to the disaster. Whether you have contractors is not a part of the application for EIDL – maybe you also applied for PPP? If you received EIDL (which comes directly from the SBA not a bank or other lender) then you may use it to pay those working capital expenses which may include contractors. If you’re still not sure, your local SBDC should be able to help you understand how EIDL can be used. Use the SBA local assistance locator to find help in your area.

  152. Applied for EIDL loan on 04/03/20 application # 33017***** also asked for EIDL grant. On 04/14/20 I recieved an email from SBA informing applicants that the advance amount would be $1000 per employee with a $10,000 max. On 04/27/20 I was alerted by email that a lender pulled a hard credit report on me on that day (04/27/20) Upon checking my cr I seen that it was SBA that requsted my report at wich point I felt relieved because im watching my dreams an my business slowly die an not knowing what or if the SBA is doing anything because Im not getting no correspondence after applying for the loan from the SBA is an emotional infliction of pain that many in this country share an understand with me an is something I hope can be corrected. So now after learning this I know Im more than just an application number an the SBA is looking at my loan request an because they did a hard pull on my credit I might get an EIDL loan an I have successfully submitted an application so now I will get the EIDL Advance that will temporarily save me until they complete the loan process. So now I wait patiently for an Email or a deposit but now with Hope and Determination because I know my business has a chance an I may be down but im not out yet. So now its 4 days later 05/01/20 no email an no deposits
    So I decide to try an get thru to SBA Disaster Assistance customer service center (1-800-659-2955)
    I was able to get thru an explained my concern that SBA did a hard pull on my cr and I haven’t recieved an email or deposit an was wondering if I am correct about I should recieve the Advance now because I believe by pulling my cr I have successfully submitted an application…. She says since its been 4 days an I didn’t recieve a deposit after my cr being pulled she was transferring me to a Tier 2 representative, after a brief hold I was connected an explained my concern, the gentlemen asked for my app # an was able to look up my status. He then updated me on my loan request…
    I will be notified by Email but my loan was declined because my credit score is too low and I will not get the EIDL Advance because my loan was declined….. Thanks for reading this I just wanted to share my experience.
    Im at a loss for words, thoughts or feelings at this time.
    I feel like I been tricked by this hole EIDL process, It don’t seem right but I don’ t know? Thanks and good luck with your applications,

    1. Don’t accept that answer. Call back. You are suppose to receive the grant money. Whether your loan was approved or declined

  153. What if you receive a bigger payment from grant than your ppp loan? Does that mean none of the ppp will be forgiven?

    1. I have a question please advise if possible. I applied for the EIDLloan for my husband but I’m also listed on the application, we have the percentage of ownership marked for 50/50….will this prevent us from being approved or would funding occur jointly in our joint checking acct…thank you so much for your time. I appreciate

      any and all advice.

      1. Brandy – unless one of you does not have acceptable credit I see no reason why it would be a problem. You provide the bank account information when you apply so that’s where funds will be deposited.

  154. Hi Gerri,

    I applied for EIDL a month ago but still haven’t received the funds yet. Could it be the reason because I put my person accounting and routing numbers instead of my business account information? Please advice. Thank you!

    1. Denis – I doubt it. The SBA appears to be very backed up. Make sure you check your spam folder for messages as well. You can always contact them directly using the information in this article.

      1. Gerri,

        Thank you for your prompt reply. Just spoke with a representative by phone (1-800-659-2955) and was told that there is no possible way to check my current status of the EIDL Emergency Advance grant. I guess my only option is to wait and see what happens.

          1. I was sent an email of my loan approval for 11,500 for the EIDL and asked to sign to sign the closing documents. How long after until i receive the funds? Will i get the amount approved for or a different amount?

        1. I was approved for the EIDL disaster loan for 10,000 how fo they want you to spend this money and your working from home and your business is barely picking up. Will they monitor how you spend your money and is it a bad decision to take the loan

  155. We applied for the EIDL on March 31st and checked the grant box. It says they are processing first come first served, but other businesses in my small downtown community have received their grant money and they applied days after us. We still have received nothing and I am concerned we should be reapplying. Are they actually using a first come first served process?

    1. Nicole – I don’t have insights into how it’s working behind the scenes unfortunately. Right now the portal is closed so you can’t reapply. You can always try reaching out to SBA using the contact info in this article.

  156. Hi,
    I applied for EIDL and received $9000.00 in my bank account last week. Since October 2019 my credit score has gone down in the drain. I do have a SBA loan for our property and new construction approved in July 2018 and completed in August 2019. I have made payments since then, all auto and mortgage payments are paid on time. I got behind on credit cards due to construction delays and tropical storm, slow winter months and then COVID-19. My score is now in mid 500s back in October was 740. Do they look at history or just current credit scores? Not sure what to expect.
    Please advise

    1. I wish I knew. There is some leeway apparently for those whose credit was recently impacted by coronavirus though if they are just pulling score (and not reports) it seems that would be hard to determine. I just don’t know how thoroughly they are vetting that. But you are allowed to ask for reconsideration if you are turned down.

  157. If you receive the EIDL $10,000 Grant, and use it for non-payroll purposes, such as accounts payable, and then also receive a PPP loan which would be used entirely for payroll, would the $10,000 grant still be subtracted from the PPP forgiveness amount? If that $10,000 is subtracted from the PPP forgiveness amount is there any reason to also apply for the EIDL?

  158. I have a new business and have not been required to file with the IRS yet. Will SBA consider projected 2020 gross revenue forecast statements for the EIDL loan? We were about to hire 8 individuals and start shipments of product that was just received from our manufacturer 2 weeks prior to the shutdown. Thank you for the wonderful article.

    1. You can apply for EIDL if you were in business before the date of the declared disaster – January 31, 2020. But as for how to apply with no 2019 revenues you’ll need to check with the Disaster Assistance hotline or your Small Business Development Center to find out for sure. Thanks for the kind words!

  159. Is there a time limit to use the EIDL Advance?
    We received both PPP and an EIDL-A. The PPP must be used within 8 weeks to be forgivable. Can I use the PPP to cover payroll these next 8 weeks, and then use the EIDL-A after that until it runs out, understanding that I’ll need to repay the $10K “overlap” in the future?

  160. We got an advance deposited into our account yesterday. What’s next? We were not sure if this means we are approved and now just waiting on SBA? Any idea on time frame for the loan? Thanks

  161. Do you know what the certification means that says “if feasible I will purchase American-made goods and products”. This is in the EIDL and the PPP. Is there written guidance on what this means?

    1. It looks like EIDL grants are tax free. Although we haven’t seen any guidance from the IRS on it, I’ve been told by the Florida SBDC that “Congress has made it clear that the forgiven amounts for both EIDL emergency advance and PPP are not a taxable event.”

  162. As the owners who are 50/50 in the business, can we also pay ourselves payroll with the EIDL as well as our two employees, plus use 25% or the funds to pay our monthly bills?

  163. Hi Gerri,

    Thank you for your article. I think you said the EIDL loan/grant can not be used to pay for lost income. I thought the idea is to help companies and sole proprietors pay their employees which is due to loss of income from the virus and it’s effects on the economy. I am a sole proprietor real estate agent with no employees other than myself.
    I was told to apply online and complete the info in reference to my income and cost of doing business for the last 12 months and the amount of my loan/grant would be based on that info up to $10,000 . So am I eligible or not? No help with loss of my income as a result of the virus and it’s effects on the economy?
    Thanks for you help!

    1. Sam,

      We can’t comment on whether you are eligible or how much you will be eligible for as that’s a determination made solely by the SBA based on their extensive guidelines.

      This is a technical topic and I know it’s confusing, but the article did not mention “income.” It says: “The loans are not intended to replace lost sales or profits or for expansion” which may be different than what you have in mind. Additionally, the application asks for gross revenues (not “income” – if you mean your income) and COGs.

      A recent email from the SBA indicates the advance/grant will be allocated at $1000 per employee, but the EIDL loan amount for which you are eligible may be more than that.

      I’m guessing from your comment that you are trying to get help to replace your own lost income. You may want to consider also applying for PPP which is a different loan program that may help you cover your payroll costs for yourself for a couple of months. Our
      Cares Act SBA Loan calculator may be helpful there.

  164. Hello. Submitted online application many days ago for the EIDL. I did not minimally receive a auto-confirmation email from the SBA. Was I supposed to. If yes, should I reapply? Thank you!

    1. Lynn,

      You should have seen a confirmation number when you filled out the application but I don’t believe confirmation emails are going out. You can call the Disaster Assistance Hotline mentioned in the article if you want to check the status of your loan.

  165. Also, can I do BOTH the $10 Grant for EIDL and also the 50% Payroll Tax Credit? I know you can’t do both PPP and the Tax Credit, but not sure on doing both EIDL $10k grant and also 50% payroll tax credit. Because if I can do both of those that’s $5k free money for the Payroll Tax Credit and $10k free money for the EIDL grant, and that would be $15k free money if I can do both. So it would be good to know this. Please let me know. Thanks so much for your great articles!

  166. Hello so under the “How Do I Get the $10,000 Grant?” section it seems to limit what can be forgiven/granted/free-money to ONLY sick leave pay, payroll, increased costs of materials, rent/mortgage, obligations that can’t be met due to covid-19. But, on the next page under the “How Can I Use the Money?” section, it lists more stuff than that, so I’m trying to determine if that stuff under “How Can I Use the Money?’ is also forgiveable under the $10k grant, such as “fixed debts, accounts payable, and other bills”? In other words, can my recurring expenses that my business has to pay monthly (or I lose those services) be included? And when do those recurring expenses have to be invoiced to my business in order to be included? Is there a date range of eligible expenses for the $10k grant? To clarify further, can it pay for the my recurring expenses for the rest of the year of 2020? and that will be forgiveable under the $10k grant money? Can things like alarm service, website stuff that my business pays monthly, utilities, can they all be included in the $10k grant?

    1. Great question Chris. I haven’t seen specific guidance to answer your question exactly. However, the actual text of the Cares Act is here if you care to dig in. You’ll want to look at section 1110 and then Use of Funds. It does say, “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…” and then goes out to spell specific uses enumerated above.

      Here’s what the Standard Operating Procedures for Disaster Loans says: “Economic injury loan proceeds can only be used for working capital necessary to carry the concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury.”

      I would encourage you to ask the SBA this question either when your case manager reaches out to you or by calling the Disaster Assistance hotline. Let me know what you find out!

  167. I’m confused how the $10K EIDL grant may impact the forgivable PPP loan amount. Let’s say I get a PPP loan for $50K and it’s entirely forgiven. Can I also apply for an EIDL and receive the $10K grant, therefore in essence I get $60K in forgivable loan/grants?

    1. It’s our understanding you may be able to get an EIDL (including a grant) and PPP to use for different purposes. If you plan to get both, though, please discuss this with your SBA case manager and your tax professional. This is a federal program and it is important to follow the guidelines. We can’t offer specific advice.

  168. I’m a 1099 soccer coach self employer working part time. I have a full time job but use coaching soccer as a part time job. Would this disqualify me from applying for the 10K EIDL Loan?

  169. Since this program is now available for the self-employed and individual contractors… how do the EIDL grant provisions of using the grant money to provide payroll for employees apply if you are the only employee? It seems odd that they specifically say you can apply as an individual contractor but then say you must use the grant money for payroll and not for other purposes in such a situation. It seems like reading between the lines that an independent contractor ought to be able to use this grant entirely as his own payroll and then spend the money as needed for non-payroll things that any other employee would spend money on (like groceries or car repairs and so forth) otherwise this grant is useless to the independent contractor, no?

      1. Gil – The DBA isn’t an issue as far as I know. If you have questions though you can always call the SBA Disaster Assistance hotline at 1-800-659-2955 or contact your local Small Business Development Center.

        1. Do you have any information on how/where to repay the loan? I want to start paying early, but have looked everywhere.

  170. What happens if you defaulted on a SBA loan over 20 years ago with a different business. Can you still apply for a disaster relief loan.?.

    1. If that comes up in their system it may result in a decline but it’s hard to say after that length of time. (Also read the application carefully to see if it asks this question. I didn’t look for it when I reviewed it.)

  171. You need to update your info the SBA no longer states the loan advance for Economic Relief will be in 3 days! They now state “days within”

      1. Hello Gerri,
        I have received my EIDL and I also want to apply for PPP to refinance my EIDL because the interest will be lower 3.75% vs 1% . Do you think I should apply for both or just EIDL? Thanks

        1. Congrats on getting your EIDL! The CARES Act states you can use a PPP to refinance an EIDL made beginning on January 31, 2020 and ending on the date on which covered loans are made available. (That was on April 3, 2020.) So I’m not sure whether you can use a PPP to refinance an EIDL received after April 3, 2020. You may find PPP useful for payroll purposes however.(Also keep in mind the repayment term for EIDL may be much longer than PPP which must be repaid in two years.)

          1. Thanks Gerri,
            Could I use EIDL as a working capital but payrolls? And could I also apply PPP for payrolls . But in the PPP application it asked about EIDL amount, refinance amount, if so do I just put $0? Do I have to put net of advance? thanks much

          2. Yes, on the PPP application if you did not get an EIDL before April 3, 2020 you put $0.

            EIDL can be used for working capital to pay bills the business would have been able to pay had the disaster not occurred.

        2. I have a home daycare, and I have expenses because of COVID-19, such as having to purchase PPE supplies and a new printer because of a power surge. What is the penalty on the money if it is used for other things?