Can I Increase My EIDL Loan Amount?

Can I apply for another EIDL loan?

SBA is aware that some EIDL applications will be duplicates that seek only an advance grant and should be able to screen your second application accordingly.

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Do EIDL loans have to be repaid?

While the SBA refers to this program as an advance, it was written into law as a grant. This means that the amount you are given through this program does not need to be repaid, even if your application is ultimately rejected. There will be no interest charged on this amount.

Can I have a PPP loan and an EIDL loan?

The SBA has two loan programs to help small businesses impacted by COVID-19: Economic Injury Disaster Loans (EIDL) and the Paycheck Protection Program (PPP). If your business is eligible, you can get both loans, using the funds simultaneously, as long as the use of funds are not the same.

Will my EIDL loan be forgiven?

EIDL offered forgiveness of an up-to-$10,000 loan advance. PPP loans up to $10 million can be completely forgiven. EIDL forgiveness was automatic, provided you spent the money properly. PPP forgiveness requires an application with the lender.

What if I made a mistake on my PPP application?

Guidance on PPP loans has been a whirlwind to say the least. … Basically you can go back to the bank and amend your PPP application to include the partners compensation and the bank will fund that additional amount.

How is a PPP loan amount calculated?

PPP loans are calculated using the average monthly cost of the salaries of you and your employees. … If your business existed prior to 2019, you should use your total payroll expenses from 2019, and divide the annual total by 12 to arrive at a monthly average.

What happens if I calculate my PPP loan wrong?

What should I do? If your loan was too big and you’re nervous about not being able to spend it correctly and get it forgiven, you can return the funds in full. The SBA has given a grace period allowing you to return the funds before May 14 without any penalties.

Can you increase your EIDL loan?

If you were approved for a loan and would like to request an increase to the amount, send an email that states your need for an increase to the loan amount to pdcrecons@sba.govwith the word “INCREASE” in the subject line.

How much of an EIDL loan can I get?

You can apply for an EIDL of up to $2 million to provide working capital for expenses such as fixed debt and payroll costs. The interest rate is 3.75% and the loan term can be as long as 30 years.

How is EIDL loan amount determined?

EIDL: The maximum loan amount is US$2 million. EIDL loans are based on an applicant’s actual economic injury as determined by the SBA, less any recoveries such as insurance proceeds. The cap can be waived by the SBA if an applicant’s business is a “major source of employment” in the area, as defined by 13 C.F.R.

Can I increase my PPP loan amount?

The IFR on Loan Increases authorizes PPP lenders to increase existing PPP loans to partnerships or seasonal employers to include amounts to cover partner compensation in accordance with the April 14 IFR, or to permit seasonal employers to calculate their maximum loan amount using the timeframes outlined in the April 27 …

Who is eligible for PPP loan forgiveness?

Answer: Sole proprietors, independent contractors, and self-employed individuals who had no employees at the time of the PPP loan application and did not include any employee salaries in the computation of average monthly payroll in the Borrower Application Form automatically qualify to use the Loan Forgiveness …

How long does it take to get an EIDL loan?

Once a borrower applies for an EIDL, approval timelines can vary depending on volume. Typically, a decision is made within 21 days of application, and disbursement of money within five business days.