Good Afternoon and we hope that everyone is safe and healthy.
For Some Good News!
The SBA website for processing applications for an Economic Injury Disaster Loan (EIDL) has been updated and streamlined. They no longer require any collateral or personal guarantees. Hopefully, this time the website will not crash or be hacked. If you had inputted your information into the website prior to it crashing the SBA is offering you free credit monitoring.
A feature of the EIDL is that a $10,000 immediate grant is being issued to each applicant. This $10,000 does not have to be repaid.
The list of the information required for an EIDL is at the end of this memo. You can go onto the SBA Website to apply. The link to the application is https://covid19relief.sba.gov/#/. You can enter this information yourself or contact us and we will complete it for a slight fee.
In addition, we conferred with Daniel S Dorfman an attorney at Forchelli, Deegan and Terrana PLLP who clarified an issue that we were concerned about. You can apply for both the EIDL and the Payroll Protection Program (PPP) loan. However, a business can only apply for both if proceeds are not to be used for the same purpose. Their recommendation is to apply for the EIDL first to obtain the grant and then apply for the PPP. The one caveat is not to co-mingle the funds. The proceeds from the PPP loan should be kept in a separate bank account so as to meet the strict accounting requirements prescribed for forgiveness of all or part of PPP loan proceeds.
We have also attached the information required for the PPP loan. A business applying for a PPP loan needs to contact their bank to see if they are a prescribed SBA lender. If the bank is an SBA approved lender applying for the loan should be done on the bank’s website. As of yesterday, we are not aware of any bank whose website is operational and ready to accept application. Most banks that we have contacted seem to have Friday as the go live date for their PPP online applications.
There are three steps in applying for the loan and we have enclosed a spreadsheet outlining the steps and the information that is needed. Keep in mind that the PPP proceeds used for the payment of payroll costs, rent and utilities will be all or partly forgiven. If you need assistance please contact our office.
We are in a stressful and unprecedented time when we must first be concerned about our and our loved one’s health and safety and then to attend to our business. If you need any assistance or just someone to talk don’t hesitate to reach out to D&F.
If you need any assistance please contact us.
Diapoules & Feinstein CPAs P.C.