EIDL offered forgiveness of an up-to-$10,000 loan advance. I put wrong cog also. Independent contractors can apply based on replacement of owner income, though loan forgiveness is generally limited to about 75% of the loan amount for most driving-based gig contractors. I want to take a moment to discuss the EIDL loans and the process, what we’re seeing and what you need to know. Covid-19 related EIDL loans include an up-to-$10,000 forgivable advance. Attach 2018 or 2019 tax return IRS form 4506T SBA form 3502, New comments cannot be posted and votes cannot be cast, More posts from the smallbusiness community, Questions and answers about starting, owning, and growing a small business, Press J to jump to the feed. I did get a loan offer but it's much lower than half my gross profit. Take your loan amount x 3.75% interest. An EIDL is a loan of up to $2 million (though the New York Times reported that the SBA is unofficially capping the amount at $150,000 due to the high volume of applications it has received). * Yes, I have a monthly payment in mind. The application came online on March 29th. A tool for estimating loan repayment options. EIDL Loan v/s EIDL Loan Advance (Grant) The definition of permitted use of EIDL funds is broad: financial obligations and operating expenses that could have been met had the COVID-19 disaster not occurred. Per the SBA.gov website on April 16, 2020, the SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. The examples below illustrate this methodology. Here are the steps to ask the SBA to reconsider your EIDL loan (note: EIDL Advances are no longer available so your application for reconsideration will be kicked out):Send an email to the SBA at [email protected]. An EIDL is a loan of up to $2 million (though the New York Times reported that the SBA is unofficially capping the amount at $150,000 due to the high volume of applications it has received). I'm an IC, so I have zero COGS. The number is ________________, I am seeking an increase in the amount of. Targeted EIDL Advance: Borrowers in low-income communities who have experienced an economic loss of 30%+ due to the pandemic may qualify for an additional loan advance/grant. ... on 7/27 off the advice of several folks and an old reddit thread, I approved the loan to jumpstart the grant, ... signed the document now waiting for the amount to deposit into my business account. Loans over $200,000 may require a personal guarantee. Summary of Loan Amount Calculations: It is our understanding that the Small Business Administration (SBA) may be evaluating loan amounts on a case-by-case basis and may rely on a modified version of historical calculation terms outlined in the SBA's Standard Operating Procedures Manual. The full EIDL loan amount (not the grant) is based on six months gross margin, with ability to disburse 500k initially. Just reply to the disastercustomerservice email? EIDL Loan Calculation unveiled by Sr Loan Officer at SBA and Loan amount changed I have heard a few different ways that loan amounts are calculated and I needed to know the method and have it come from the SBA directly. With a maturity of up to 30 years, EIDLs are designed to help carry businesses through tough times caused by a disaster, such as the COVID-19 pandemic. Click Save, and you're done! Posted at 10:48h in Uncategorised by 0 Comments. SBA loan calculator limitations. Forgot your password? The SBA website, however, lists the maximum loan amount … Our LLC is a seasonal tourist business, open roughly 6 months per year. The actual amount of each loan is limited to the economic injury determined by SBA, less business interruption insurance and … EIDL Grant stems from an EIDL Grant Application process approved by the Cares Act. My schedule c is about $100k net so I got $50k. I spoke to a few reps at the SBA and all of then say different. Interest does accrue on the loan during this deferment period. Since then SBA has been under fire by Congress from digressing. 12 days ago. You can be granted both the PPP and the EIDL Advance, however, the proceeds from any Advance up to $10,000 on the EIDL loan will be deducted from the loan forgiveness amount on the PPP loan. There is a lack of privacy for the borrower of an EIDL loan, and the loan details are available to the public because of the Freedom of Information Act, enumerated at 5 U.S.C. Based upon our understanding of the eligibility rules required by the SBA for EIDL grants, your business would not qualify for an EIDL grant due to the fact that your business opened in April 2020. At 2.5 times their payroll, the maximum loan amount would be $25,000. When I first applied I got a $150k quote. We have seen that the SBA has emailed people who have applied probably within those first two to three days. Interest does accrue on the loan during this deferment period. You will be required to provide more information before getting here is you completed the streamlined app from 3/29 forward. The maximum loan amount is $2 million for second draw PPP loans and $10 million for first-time PPP loans. You would … I'd love to share it but I'd feel awful as I am sure he wouldn't appreciate it :). Example 1: No employees make more than $100,000. It appears they back … Can someone please confirm if the loan amount offer is based on Net Profit (line 31 on my Schedule Cs) - COGS/2? How do I go about making that correction? As an example, let’s say you receive an EIDL emergency grant for $3,000. Loans are offered with a 3.75% interest rate for small businesses and 2.75% for nonprofit organizations. NOTE: Confirmed by the SBA. The loan is pre-payable at any time without penalty. I was able to change my loan amount also. SBA 7(a) Loan Calculator. Then, once you have computed the payment, click on the "Create Amortization Schedule" button to … Enter different loan amounts, interest rates, and terms in years to get a clearer picture of how much you'll actually have to pay. ... help Reddit App Reddit coins Reddit premium Reddit … Can I get his email please Congratulations!!! § 552. Add the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid). A small business loan, like the SBA 7(a) loan, can be exactly the nudge you need to grow your organization -- but no matter how you spin it, borrowing for your business is a big decision.. That's why we created our business loan calculator. I put my newly formed LLC EIN instead of my social because I was a sole prop last year. Question about loan amount calculation. Press J to jump to the feed. This is a forgivable loan created to help businesses maintain payroll. Please review and accept the new amount. The only difference is that my COGS is $223,569. I have heard a few different ways that loan amounts are calculated and I needed to know the method and have it come from the SBA directly. It includes all the costs directly involved in producing a product or delivering a service. I had already accepted the original loan amount offer: I was wondering if you knew how the loan amount is calculated? Calculate. SBA 7(a) Loan Calculator. If you click my name I have given a few email addresses for the disaster customer service, New comments cannot be posted and votes cannot be cast. Your 2019 IRS Form 1040 Schedule C must be provided to substantiate the applied-for PPP loan amount. The revenue earned in those 6 months covers 12 months of expenses. Enter different loan amounts, interest rates, and terms in years to get a clearer picture of how much you'll actually have to pay. I gave them my income and expenses for the past 12 months even though I have no income for 4 months. Enter your desired Loan Amount * $ Do you have a Monthly Payment in mind? EIDL applications will continue to be accepted through December 2021, pending the availability of funds. On Reddit, u/kitehigh911 said they applied on March 16 and received their full EIDL funding yesterday. • If you get the advance and you don’t get an EIDL, you still get to keep the advance, up to $10,000, as a grant, so you will NOT have to pay it back. PPP loans can be up to $10 million, EIDL loans are reportedly capped due to demand at $150,000 or less, according to several reports. 13.2k members in the EIDL community. In this article we’ll discuss some popular questions we’ve received from EIDL applicants to our articles Frequently Asked Questions about EIDLs and 5 Reasons You May Want to Reconsider An EIDL Loan, as well as in the Facebook group, Business Loan Insight Financing Hub – PPP, EIDL and More on Facebook, where these loans have been a popular topic of discussion. 09 Feb. eidl independent contractor reddit. How to calculate First Draw Paycheck Protection Program loan amounts and what documentation to provide - by business type Access your SBA Economic Injury Disaster Loan Portal Account to review your application and track your loan status. The maximum loan amount is $2 million for second draw PPP loans and $10 million for first-time PPP loans. With a maturity of up to 30 years, EIDLs are designed to help carry businesses through tough times caused by a disaster, such as the COVID-19 pandemic. The payback time is now 29 years. No, I need help figuring out my monthly payment $ Number of Monthly Payments* Sample Interest Rate * % * Required information fields. Any insight whether or not the SBA would re-calculate an EIDL grant loan for businesses earning 100% of their revenue in one-half of a year rather than a full year? My Day This Morning 5/15/20: I did the calculations for the loan amount and it didn't seem right. 29 year loan with monthly payments on $25937.50 at 3.75% = $121.99 (SBA told me $122.) That's correct. Cost of Goods Sold, (COGS), can also be referred to as cost of sales (COS), cost of revenue, or product cost, depending on if it is a product or service. Here we can discuss EIDL loans, advances, and all things related to the 2020 CARES ACT. Cookies help us deliver our Services. Really Interesting! I grossed 77,203 and that was only March to December. SaaS Marketing for Product Development Teams Menu Close Home; Marketing Method; Insights Open menu. This is the amount you need to pay back, starting 12 months from now. EIDL loan specifications. The amount of any forgiven First Draw PPP Loan or any EIDL advance, which are not subject to federal income tax, is not included in the calculation of “gross receipts”. I own a restaurant and idiotically included labor within COGS, so waiting for a LO to reach out to see if I can get this fixed. Although I have seen that a polite push could be made for more with extenuating circumstances. Call 1-800-659-2955 | TTY/TDD: 1-800-877-8339 Monday - Sunday, 8 a.m. - 8 p.m. By using our Services or clicking I agree, you agree to our use of cookies. Credit: Cue378 an avid supporter of small businesses. The examples below illustrate this methodology. No. Is this the free SBA grant money I heard about? Step 5: Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid). Can we please have the increased loan amount? I called Tier 2 and they said there is nothing I can do now, just apply again if I need more money. NOTE: Confirmed by the SBA. What I’ve Read; About Scott Here we can discuss EIDL loans, advances, and all things related to the 2020 CARES ACT. Is there any guidance on how the SBA calculates the amount you are eligible for for the EIDL? The CARES Act under the Emergency EIDL Grant section states that: (6) UNEMPLOYMENT GRANT.—If an applicant that receives an advance under this subsection transfers into, or is approved for, the loan program under section 7(a) of the Small Business Act (15 U.S.C. 179,891/12 = 14,990.91 * 6 = 89945.50 Rounded to 90,000 less the 7,000 grant received = 83,000. We received our loan amount through the loan portal of $83,000 and it doesn't seem to match what we are told is the calculation for the loan amount, can we please fix it? Press question mark to learn the rest of the keyboard shortcuts. How to calculate First Draw Paycheck Protection Program loan amounts and what documentation to provide - by business type Labor/payroll/independent contractors are NOT part of my cogs. Thanks man. For questions about your payment amount, due date, or anything else regarding the specifics of your loan, please contact the SBA directly at: (800-659-2955) or [email protected] . Home > Uncategorised > eidl independent contractor reddit. The limitations of the calculator itself would likely be related to your interest rate. Didn't sound right. Thanks! These costs can include labor, material, and shipping. This calculator will compute a loan's payment amount at various payment intervals -- based on the principal amount borrowed, the length of the loan and the annual interest rate. In response to the unprecedented crisis wrought by the coronavirus pandemic, the federal government has expanded financing support through the Economic Injury Disaster Loans (EIDL) program. Loans over $25,000 may require collateral. For example, if Net Profit total shows $100,000 and no COGS, would they divide $100,000 by 2 to come up with a loan offer of $50,000? It was simple. This loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue. The advance, part of the federal government’s $2 trillion economic stimulus package, would not have to be paid back, even if businesses were ultimately turned down for an EIDL loan. Everything has been automated so far. Subject: application number and the word “increase”, Please reconsider my application for an increase because, I made a mistake on Cost of Goods sold. Here are the steps to ask the SBA to reconsider your EIDL loan (note: EIDL Advances are no longer available so your application for reconsideration will be kicked out):Send an email to the SBA at [email protected]. Alternatively, you may have to prove the legitimacy of business. According to the SBA's guide, the following loan parameters apply for EIDL: COVID-19 related EIDL loans include an immediate forgivable advance of up-to-$10,000; The amount of your forgivable advance is determined by number of employees, at $1,000 each; A maximum $2 million working capital loan; See the EILD loan standards below: Business start date: must be prior to 1/31/20 otherwise loan will be automatically declined. (Deleted original post due to typo in title.) No. EIDL: Small businesses and nonprofits with 500 or fewer employees that can prove substantial economic injury caused by … Loan amounts above that amount will likely not be forgiven due to the high participation rate in this program through the CARES Act. So for me, $25,000 x 1.0375% = 25937.50. Skip. Can anybody confirm? Operating Business: any business must pass verification of valid operation, if it comes up in a google search that is satisfactory. I also called for help through the portal but haven’t heard back, I would call Tier 2 877-641-8202 and send the email back. EIDL payments are deferred for 1 year after the disbursement of the loan, although you may start paying on your loan earlier than this. A small business loan, like the SBA 7(a) loan, can be exactly the nudge you need to grow your organization -- but no matter how you spin it, borrowing for your business is a big decision.. That's why we created our business loan calculator. Plus the outstanding amount of any EIDL loan made between January 31, 2020, and April 3, 2020. What is the first six of your app number? First off EIDL loans and grants. I don’t have rental losses, ag/non-profit costs or secular service costs. That is the dollar amount of the loan to a maximum of $150,000. As of June 15, 2020, the SBA is once again accepting EIDL Advance and loan applications from all eligible borrowers. Or could I apply for another program like the 7(a)? The advance (or grant) of up to $10,000 is part of the Economic Injury Disaster Loan program, not Paycheck Protection Loans. It’s the lessor of 6 months gross margin or $150,000. Has anyone been able to fix the amounts? Applied for my business that had a gross of about 985k last year with a profit margin of about 20%. I think I can pay off the loan by the summer. Example 1: No employees make more than $100,000. In addition to making the EIDL program more accessible to businesses that have suffered economic hardship due to the pandemic, 2 grant programs have been added: the EEIG, and the new, targeted EIDL grant. I am a service business also and my cogs represented what I purchase products for to resell. Please see attached which I submitted our P&L for the last 12 months. How to determine your Loan Request Amount for your PPP loan What to do if you have received EIDL or other SBA money in 2020 IMPORTANT UPDATE FOR 2021: Congress has approved an extension of the PPP loan program until March 31, 2021, including “second draw” PPP loans for businesses that received PPP funding in 2020. No. Can I apply again before Dec 31, 2021? I called and they emailed me a request to reconsider. Economic Injury Disaster Loans (EIDL) – The law limits EIDL(s) to $2,000,000 for alleviating economic injury caused by the disaster. The Cares Act provided for $10,000 (exactly) to be paid to each bsuiness who applied during a window that certified an impact because of COVID-19. 0 0. Has anybody figured out the calculation for EIDL Loan offers....I have seen gross profit (Rev - COGS) / 2. Minus any EIDL advance you received. Economic Injury Disaster Loan (EIDL). 3. Editor’s note: As of December 20, a new bill was formed that includes additional funding for the EIDL grant program. According to the SBA, in order to be eligible for an EIDL Grant or disaster loan, the entity must have been in business as of January 31, 2020. • If you get the advance and an EIDL, the amount will be deducted from the total loan amount so that it effectively becomes a grant. Is this the free SBA grant money I heard about? Absolutely, mine is seasonal and I only have 8 months of income as I serve schools. Questions? Username or email. Initially, they published that this was going to be up to $2 million in loans. The actual EIDL loan is a 30-year term loan at 3.75% (nonprofits 2.75%).