Do you know you can apply for economic injury disaster loans? which is the SBA loans 2022 service. Precisely, the united states small business administration for small business was people that established this service. More so, it is for small business with about 500 employees all across the country.
Therefore, in the time of the pandemic, when there was the covid-19 lockdown, so many business like this suffered huge economic injuries. More so, there are as well some small agricultural cooperative.
Also, mini cooperative and some private entity are as well affected too. However, the small business administration is a pathway to help small business owners with assistance via economic injury disaster loan EIDL.
What is Economic Injury Disaster Loan? (EIDL)
Basically, the EIDL or SBA loan is a low interest loan arranging form $2 million and so. Therefore, it is for the small business to strive under the harsh economic conditions due to corona virus pandemic. Although, the loans have a cut off time, which is December 2020. More so, this gives support for small business.
Also, the loan gives you an economic relief form the loss your business do encounter during the pandemic. Also, it will enables you to scale out a conducive working capital scheme for your business.
More so, you can apply for an emergency grant that is up to a $10,000 without any repay. Again, the SBA loan or EIDL loan is easily process via the advance program funding. More so, the interest rate of the loan is 3.75% for the small business and 2.75% for non profit ventures.
SBA EIDL Eligibility
On this section, lies the small businesses that are eligible to apply for this SBA EIDL loan services.
- Small businesses
- Tribal businesses
- Nonprofit companies
- Small agricultural cooperatives
- Small aquaculture businesses
- A sole proprietorship business
Requirements for EIDL Loan Application
On these section the SBA loans requirements also know as eidl loan will need you to provide some level of information on your business before it will be processed. Below are the requirements to provide for womply ppp or eidl.
- Your social security number or Federal Tax ID
- Then your business legal name
- Furthermore, the name you are doing business with.
- Your business gross revenues for the 12-months. This is prior to the date of the disaster
- Business entity type either, independent, sole proprietor, contractor, LLC, S Corp, C Corp, or partnership
- Business purchased date
- The date you establish your business.
- Then the number of employees you have.
- Estimate your loss in U.S dollars
- Also, provide your banking information e.g. routing numbers and account numbers
- State your business activities.
- The cost of goods you have sold for a 12 month time period to the date of disaster.
- Rental properties State any rental properties in your possession.
- Next, note if your business have any compensation from other agency due to the disaster like ppp loan or smartbiz ppp
How to Apply for EIDL Loan
- Simply, apply for EIDL loan via the main online website https://www.sba.gov/
- Click on the caption for loan application.
- After you finish filling your application, submit it. Furthermore, the small business administration will send an official across to you for inspection and damage estimation.
- After this process, sign the provided document with date and IRS form. This will give IRS the access to provide SBA loans for your tax refund.
Additional Requirements for SBA PPP Loan Documentation
To fully complete your SBA PPP documentation when you want a loan or grants. The SBA platform will ask for more information in other to approve the loan. This is just to make sure your status and business meets the standard to apply for ppp loan.
- You will need a projected Financial Statements
- Posses ownership and affiliations
- Your current profit and Loss Statements (P&L)
- Present your Business Certificate/License and Permits
- Schedule of Liabilities (SBA Form 2022)
- Provide your income tax returns
- Also, provide your corporation documents
- Statement of Goods Standing with the present state
- Tender articles of incorporation
- More so, craft out a statement designating the person or persons by name and title legible to sign the SBA loan closing documents.
- Furthermore, provide meeting minutes showing company board approved EIDL application
- Also, provide the employer Quarterly Tax Form 941.
So this is all the requirement you need to apply for the small business loans. However, same process still applies to lendio ppp and sba eidl loan.