$10,000 EIDL GRANT

Following up on the PPP loan my bank funded to me yesterday.

The rep followed up by sending me a simple spreadsheet to document the use of the loan/grant over a period of the next 8 weeks as follows:

Utilities
Payroll Costs
Mortgage Interest Payments
Rent
Continuation of group health care/insurance premiums
Refinance Eligible EIDL
Interest on Debt Incurred Prior to 2/15/20

He emphasized to me that the funding 8 week clock starts the date funds were released to me, and as long as 75% of funds were used towards "Payroll Expenses" within that 8 weeks, the whole amount is forgiven.

 

I also mentioned the Covid-19 SBA Debt Relief Program enacted for those that have an existing SBA 7(a) loan.

My truck loan is a an SBA 7(a) loan...

The way these loans work is that the SBA underwrites and "guarantees" up to like 75% of the loan, but they utilize an SBA approved lender to process the loan.

My bank rep was a little fuzzy on how the process was going to unfold on that program. In reality, he expressed that he was so overwhelmed with the PPP stuff, he didn't have time to look into right now.

So, I bypassed him and went right to the the SBA myself about it. I found out which district office in the U.S. processes those 7(a) loans, went to their website, downloaded their employee roster in that department, with names and extensions, and started calling LOL.

None of the 10 people I called answered their extensions, so I just left a voicemail with each person with a brief description of why I was calling, my name and number, etc.

I'll be honest, I was surprised when a gentleman called me back that afternoon. He was very gracious and helpful. He have me some basic info and followed up with another the following day.

The news he gave me is unreal...

He told me that starting May 1st my truck loan will be automatically deferred for 6 consecutive mos. After which the monthly principal & interest will be FORGIVEN for an additional period of six consecutive months!

I'm glad now that I jumped through all the hoops I did back when I applied for the SBA loan.

 

I suspect they are taking a percentage of the annual revenue listed on the application, verifying a person's creditworthiness and offering a loan based on those 2 factors.

If I had to guess, I'd say it's probably in the range of 10 to 20 percent of the annual revenue listed on the original application.

Which could be extremely helpful for a lot of small businesses who are hurting for cash flow and need capital to hold them over until things start to open back up again.

Unfortunately, unless something changes soon, a lot of small businesses will be out of business in the next few weeks.

 

No, if you read what I posted, an official confirmed that the EIDL has had 4 million loan applications with requested funding of 373 billion dollars.

The congress only allocated 17 billion for EIDL. So, they're only 356 billion dollars short LOL

But yes, the PPP is out of money too.