Did you apply for an Economic Injury Disaster Loan (EIDL) through the SBA when the CARES package was first announced at the end of March?
To refresh your memory, this was the loan processed through the SBA (not your bank) at the reasonable rate of 3.75% and 30 year terms. It was the loan that offered an instant cash advance of $10,000 by simply checking a box on the application. Some people applied on the SBA website, others downloaded the forms and either uploaded them or mailed them in. Some businesses received the $10,000 but no subsequent loan. Some received $10,000 and a loan. Total loans approved as of April 20, 2020 according to the SBA website: 26,919 loans totaling $5,566,913,788.
That sounds like a lot, until you consider that 90% of applicants have received nothing at all.
The reason? Besides running out of money, (they call it a “lapse in funding”) it turns out that the advance was NOT supposed to be $10,000 for every applicant. It was supposed to be $1000 per employee, up to a maximum of $10,000. To fix this, the SBA re-wrote the application form and added a field for “number of employees.” Details, details.
But here’s the kicker:
If you filled out the original form without indicating the number of employees, your loan application will not be processed. You will not be notified. Your application will just not move forward.
So, if you still want to apply for this loan, you will need to re-submit your application. However, as of this writing, the SBA is not accepting new applications, because there is no funding available.
(Note to self: This might be a good time to re-read Catch-22…)
To find out if your application is actually in the works, or if it is in permanent limbo, look at your application number. According to the SBA’s Office of Disaster Assistance, your loan application must start with a 3 to be in the queue. If your loan number starts with a 2, you must reapply. If and when funding becomes available again.
To check on the status of your application, go to the SBA portal.