If a small business qualifies for an EIDL, then it can also qualify for an EIDL Grant of up to $10,000, which will be given as an advance on the loan. One must submit an application for the EIDL Loan, and the deadline to submit the application is December 31, 2020. You can get a grant, which will be an advance on the loan if it is approved. You can receive the grant but then be denied the EIDL. If you receive the grant and are denied the EIDL, then you do not have to pay back any money you received as part of the EIDL Grant.
A small business under the EIDL is determined by the type of business it is, the business’ revenue, and the number of employees of the business. It also includes businesses with up to 500 employees, tribal businesses, cooperatives with up to 500 employees, ESOPS with up to 500 employees, anyone who is a sole proprietor, and anyone who was an independent contractor from January 31, 2020, to December 31, 2020. Another condition is that COVID-19 must have affected your business. Private and non-profit businesses are eligible for the loan and must have been operating since January 31, 2020, when the COVID-19 epidemic was announced.
Some documents that you need to submit to SBA are your profit and loss statements, and you must have “a good credit history.” If your application is submitted and is not fully completed, then you will be contacted. If the loan is approved, then you will be contacted to further discuss the details. You have up to 30 years to repay. Some ways you can use the loan are for payroll, rent or mortgage payments,
The application can be found at sba.gov/funding-programs/disaster-assistance. If you have any questions, then you can call 1-800-659-2955 or email email@example.com. You can get an EIDL Loan an EIDL grant and even the Paycheck Project Program (PPP) loan, but they can’t be used for the same purposes i.e., payroll. Jayson Lutzky gives free consultations and can be reached at 718-514-6619. He has been practicing law for over 36 years in the Bronx, and he can help you with your legal matter. Due to COVID-19, he is available by telephone or by Zoom Monday to Friday from 9am to 4pm. Regular business hours are Monday to Friday from 9am to 5pm, with the last appointment at 4pm, and Saturday, from 10am to 2pm, with the last appointment at 1pm.