Dear Friends and Clients,
To keep you apprised of the updates to the SBA Economic Impact Disaster Loans (EIDL) process that we shared with you earlier this week, the following supplemental information may help you to expedite the application process. Contact Platinum Bank to assist you along the way.
- The SBA acknowledged that there are connectivity issues during the application process. This is due to the heavy traffic currently going through those servers. They stated that they are working to add more capacity to help with these issues. In the meantime, they recommended:
- Complete the PDF versions of the forms before beginning the electronic application. This way you have all of information available and questions answered already, and can simply pull from the completed form. This will reduce the amount of time you are in the electronic application and reduce the chances of losing connection mid-way through. Access forms here: https://disasterloan.sba.gov/ela/Information/PaperForms.
- Save the application often during the process so if you do get kicked out, you can jump back in where you left off.
- If possible, access the application during “off” hours, primarily evenings/nights.
- Use Microsoft Edge, if available, as that is the preferred internet browser (yes, it makes a difference!).
- There is no place on the application form for the applicant to request a dollar amount. This is determined during the underwriting/approval process.
- The Borrower’s name on the application must read exactly how it reads on the Corporate documents. Individuals names must also be exactly correct on the application (William vs. Bill).
- SBA will determine the loan amount based on the applicant’s monthly business expenses, a review of the applicant’s balance sheet and liquidity position, and the guarantor’s personal credit history.
- This amount can be modified after approval if it is determined that the applicant business requires additional funds.
- After approval, the first $25,000 disbursement will be made available right away. Any additional funds would only become available once all required collateral has been pledged.
- Loans will be for a term of either 15 years or 30 years, to be determined by the SBA based on repayment ability. There is no pre-payment penalty.
- A business owner can use proceeds of the disaster loan to pay payroll to all employees, including themselves. Owner salary should be included in their list of expenses, and SBA will allow owner salary to continue at a level consistent with what they had been paying prior to the disaster, as long as it is not deemed to be “excessive”.
- The SBA Disaster Loan center can be reached at: firstname.lastname@example.org (all one word) and the contact number is 1-800-659-2955.
Below is a link to the forms referenced above:
Additional questions can be directed to the SBA Disaster Assistance team at 800-659-2955 or email@example.com
View this video for assistance in filling out the SBA form.