$10,000 EIDL GRANT

WARNING: Long Post

I filled out the PPP bank/sba application, provided to me by my local sba approved bank, this morning.

Since I already have an in with them, my current SBA truck loan (which they wrote) it seems to me that's a faster track to funding. They are authorized to cut the check as soon as they verify all of the relevant documentation.

I am really not asking for anything more than the average MONTHLY payroll costs x 2.5, which is how it's calculated.

He has already assured me that 6 mos of my truck payment loan through the SBA, will be written off through another side of the CARE Act. So, I'm okay with that at this point.

If the $10,000 EIDL loan I applied for online is actually funded in the interim, it appears that portion will be deducted from the amount received from the PPP funding, but I'm still waiting for clarification on that. However, as long as the PPP funding is used solely for the payroll costs, it's "forgiven".

EDIT: I just received back an email from my bank rep that the EIDL is SEPARATE from the Payroll Protection Plan!

Perhaps if I do receive the $10,000 I can justifiable apply that portion to "other" category on the application

How they can actually determine a person/entity is using that money for payroll is somewhat unclear to me.

Some of the details are still a little sketchy to be honest.

Because it's applicable to my me, this is what the bank did want from me:

1. 2019 S-Corporation return
2. 2019 1040 Tax return or documentable financial records
3. Payroll summary for 2019
4. Payroll summary for January 2020 to date
5. Entity/Corporation filing documents
6. Copy of Driver's License

Note: If your situation is like mine filing as an employee of the S-Corp, it's important to be able to document all of the various sources of compensation you receive. That includes W-2, Per Diem, Shareholder Distributions. They also allow you to include health related premiums paid by the company.

I will reiterate what I've already stated, I am VERY skeptical about how the initial reporting of the $10,000 EIDL "GRANT/ADVANCE" was presented by the politicians, news media and so-called financial experts. Especially that "guaranteed 3 day" payment deal.

Perhaps I'm wrong. However, just what I had to provide for a simple PPP "forgivable loan" is enough to dissuade a lot of small business folks from moving forward.

Good luck!

 

They will run your credit. From what I've read, they've lowered the normative FICO score requirements for funding. To what, I'm not sure.

 

EDIT: I just received back an email from my bank rep that the EIDL is SEPARATE from the Payroll Protection Plan!

 

The way my bank addressed that was if you don't have a copy of your 2019 return they need "an internally prepared financial statement(s)"

 

From what I'm hearing, most of the lenders will allow for a 6 month forbearance of payments, but the amount is just rolled onto the back side of the loan.