Detailed Explanation of the US Economic Injury Disaster Loan (EIDL)
Who can apply for an economic injury disaster loan from the small business administration (SBA)
1. Immigration status: Only people with the following immigration status can apply for SBA disaster relief loans:
(1)American citizens
(2)Green card holders (including temporary two-year green card)
If the applicant is a company, all shareholders who hold more than 20% of the company's shares must hold the above immigration status.
2. Companies, businessmen: SBA loans are aimed at SMEs or businessmen. Loan funds are only allowed for normal business expenses, such as wages, rent, materials, etc.
3. Business history: applicants must have at least one year of business history.
4. Credit Score: SBA will review the credit points and tax forms of applicants and shareholders. The credit score is better than 640 points.
5. Professional license: If the service provided by the applicant requires a professional license (such as decoration, a real estate agency, an accountant), the applicant must hold the appropriate professional license.
6. Guarantee: All loans over $ 25,000 require collateral, such as real estate, equipment and automobiles.
7. Location: you can apply across the United States.
Materials needed
The applicant is a company
(1)Complete corporate income statement for the past year
(2)All shareholders holding more than 20% of the shares must provide:
o Complete personal income tax return for the last year
o Proof of immigration status (citizen paper, green card)
(1)If a company or a shareholder holding 20% of the shares also owns 50% of the shares of another company, it is also necessary to provide the complete corporate tax form of the other company during the year elapsed.
The applicant is an individual (not a company)
(2)Complete the personal income tax return for the past year.
(3)If the applicant holds more than 50% of the shares of a company, he must also provide the complete income statement of the holding company for the past year.
(4)Proof of immigration status (citizen paper, green card).
Frequently asked questions about low interest EIDL
Q: How much can I lend?
Answer: $ 2 million. But the amount that SBA is willing to borrow depends on the actual situation and the needs of the applicant.
Q: Where does the loan funds come from?
Answer: The US Small Business Administration (SBA).
Q: Do I need to provide collateral for the loans?
Answer: Loans over $ 25,000 require collateral.
Q: What are the reasons for the loan refusal?
Answer: 1. The applicant's credit history is poor.
2. The conditions of the applicant authorize loans from the bank.
3. The information provided by the requester is not true.
Q: What is the success rate?
A: The overall success rate of SBA's low interest disaster relief loan is not high, only around 60%.
Q: Is the SBA disaster relief loan a government benefit? Will this affect my immigration?
A: Applicable immigration laws and regulations state that applying for or using low-interest SBA disaster relief loans does not affect immigration status, and applicants will only be not considered a public office.
Q: What factors will the SBA take into consideration when considering loan applications?
Answer: 1. The applicant's credit rating and file.
2. The applicant's ability to reimburse.
Q: What is the interest rate?
Answer: The interest rate is 3.75%.
Q: How to repay each month?
A: You must pay online at the government pay.govt website.
Q: I work, I don't do business, I just lost my job. Can I apply?
Answer: no The above loans are reserved for SMEs.
Q: My company has not been established for a year, can I apply?
A: As long as your company started operating before January 31, 2020, you can apply
