The Tree House loves TreeStuff!

SBA COVID-19 Disaster Loan

vharrison

Island Girl
Joined
Mar 22, 2005
Messages
6,450
Location
MARATHON, FL
This is an interesting loan. Under some circumstances, the loan can be forgiven. I encourage you to research the details yourself and see if it is a good fit for your business.

The loan is called:
COVID-19 Economic Injury Disaster Loan
You apply on line with the SBA, not through a bank. The money comes from the US Treasury.

There are strict guide lines that must be followed in order for it to be forgiven, you will see those details when you do the research.

Providing proper credit, up to $ 25,000.00 will not require collateral.
 

vharrison

Island Girl
Joined
Mar 22, 2005
Messages
6,450
Location
MARATHON, FL
  • Thread Starter Thread Starter
  • #2
SBA is going to be the best source of information on the assistance available. The situation is so fluid, they are working out the details. Now, it may be your bank that will be the originator. It is hard to keep up.
 

lumberjack

Young man on the go
Joined
Mar 6, 2005
Messages
8,937
Location
Mississippi
My head spins trying to keep up with it. From one thing I read toady marks the start of applications for PPP for employers, and solo folks start on the 10th.
 

sotc

Dormant hero!!
Joined
Dec 6, 2005
Messages
21,754
Location
So. Oregon
I talked with a consultant yesterday as my head was spinning too. She said it's through the banks. I got the application but it's hurry up and wait, the banks don't know how to do it yet.
 

vharrison

Island Girl
Joined
Mar 22, 2005
Messages
6,450
Location
MARATHON, FL
  • Thread Starter Thread Starter
  • #5
Did you see the "advance" for $10,000.00 that will also be forgiven?

That is done on line and very easy, just have your P&L statement on hand.
 

Mellow

Treehouser
Joined
Oct 13, 2017
Messages
1,773
Location
Sunshine State
I applied online through my bank earlier today. I'll let you know how it progresses. I'd like to be able to keep paying everyone, even though I have no work scheduled right now. We did our last job on Wednesday. Now we're working through past bids to try and drum up something to do next week.
 

No_Bivy

Treehouser
Joined
Sep 2, 2006
Messages
5,999
hang in there y'all .......i don't miss these struggles. Don't give up
 

Mellow

Treehouser
Joined
Oct 13, 2017
Messages
1,773
Location
Sunshine State
I applied for both the PPP Loan and the EIDL Advance on April 3. I just heard the funding has dried up. I guess I'm SOL.
 

treetx

Traveler extraordinaire
Joined
Mar 7, 2005
Messages
2,221
Location
Austin, TX
You have to do the PPP loan through your bank. There was originally an online form, the one with the possibility of a 10K advance. Forget that, deal with your bank and your banker.

I got $20k last week.

I have heard of people being rejected. One I know was because his business partner had credit issues a decade ago. The others I know of are basically owner operator cash flow businesses who run everything in their life as a business expense and claim little to no income annually (to not pay taxes and because in reality, their work may pay for their lifestyle but it doesn't make money). That pretty much describes the tree business I ran.

My PPP should be covered and I do need it as my work went from all profit to all pain.
 

sotc

Dormant hero!!
Joined
Dec 6, 2005
Messages
21,754
Location
So. Oregon
Yeah, I got my application in on the 7th, got a confirmation and have heard nothing since. Nearly $60k. Still got my fingers crossed
 

vharrison

Island Girl
Joined
Mar 22, 2005
Messages
6,450
Location
MARATHON, FL
  • Thread Starter Thread Starter
  • #13
I got the approval and the loan docs yesterday. Still not sure if we are going to take the money. The rules for forgiveness are strict and I think I may have asked for too much money. You have to use 75% for payroll and the calculation I used, based on how they said to do it (average for a year), is more than I need for the next 2 months. If I don't hit that 75% point and the loan is not forgiven, the payments are really high because the loan term is just 2 years.

I emailed my banker yesterday to see if we can lower the amount of the loan.
 

Mellow

Treehouser
Joined
Oct 13, 2017
Messages
1,773
Location
Sunshine State
Follow the lead from Congress. Give yourself a raise. Enough to meet the 75% threshold.

I still haven't heard anything on mine. I'm now using my credit line to pay bills and meet payroll. Work is slow. Only did two small jobs last week.
 

BeerGeek

Treehouser
Joined
Sep 13, 2018
Messages
340
Location
Warren, NJ
So, since my biz just started this year (and due to insurance snafu and a payroll screwup, did not qualify for the PPP loan), I applied for the EIDL loan way back in mid-March. I was notified on 4/13 via email that I would be receiving the advance based on my employee count listed in the app, and lo and behold, it just showed up today. Still awaiting contact from the SBA, as the application back then did not even ask for the amount I was pursuing.....
 

BeerGeek

Treehouser
Joined
Sep 13, 2018
Messages
340
Location
Warren, NJ
Update: Got email late last night that my loan is in the working queue. Will be interesting to see what comes out of this...
 

vharrison

Island Girl
Joined
Mar 22, 2005
Messages
6,450
Location
MARATHON, FL
  • Thread Starter Thread Starter
  • #24
So, I got the advance, but did not apply for the edil loan and yet got the same email you got, saying the are working on the loan. NO, I did not apply for that loan. I am not spending a dime of any of this “advance” that supposedly do not have to pay back. It can just sit in the account till they ask for it back.

i did apply for the PPP loan.
 

BeerGeek

Treehouser
Joined
Sep 13, 2018
Messages
340
Location
Warren, NJ
I can see the reasoning behind hesitating, especially since you did not apply for the EIDL. I'm looking at it as turnabout being fair play, as my idiot bank screwed up my SBA line of credit app last year, and this allows me to borrow more at a way better rate/repayment terms.
 
The Tree House Loves TreeStuff!
Top