Denied for the EIDL Loan?
Here’s something similar.
SEO, LEAD GENERATION, BUSINESS LENDING
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STEP 1:
Find out why your application was denied
Here are some reasons why your application would be denied.
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Low credit score (under 680)
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Not enough collateral
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Lack of business revenue to repay the debt
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Overleveraged - have an existing loan
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Criminal record
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No proof of Business taxes from 2019 and 2020
STEP 2:
Strengthen your application and reapply
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Improve personal and business credit
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Pay bills on time
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Pay down your debt
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Pay over the minimum payment
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Stop applying for credit
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Wait a few months for everything to update to the credit bureaus
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We have credit repair options to help improve your credit within 1-3 months.
You will be able to re-apply and finally qualify. Having a strong credit score will help you to receive longer terms and lower interest rates.
STEP 3:
Consider alternative financing options
If your credit score is under 680, we have other options.
(Weekly & Monthly payment options available)
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We offer SBA loans, Term loans, Lines of Credit, Employee Retention Credit, Consolidation Loans, Real Estate, Equipment Loans & Credit Repair.
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How The SBA EIDL
Economic Injury Disaster Loan Works
First off, What is the EIDL?
EIDL stands for Economic Injury Disaster Loan—it’s a low-interest government loan designed to support small businesses through disasters such as COVID-19.
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Loan amount: Currently a maximum of $500,000
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Interest rate: 3.75% for small businesses (2.75% for non-profits)
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Loan term: 15-30 years
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Bonus: You won’t have to make your first payment for 12 months
These rates are absurdly low. If your business needs extra capital, the EIDL is an excellent option.
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How do I apply?
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EIDL APPLICATIONS ARE NOW CLOSED.​
What are the loan terms and parameters?
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The maximum EIDL is a $2 million working capital loan based on 6 months of operating expenses at a rate of 3.75% (up to a 30-year term)
NOTE: EIDLs are now capped at $500,000 -
Payments on Coronavirus EIDL loans are deferred for one year
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Approval can be based on a credit score and no first-year tax returns are required.
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Borrowers do not have to prove they could not get credit elsewhere
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No collateral is required for loans of $25,000 or less
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For loans of more than $25,000, general security interest in business assets will be used for collateral instead of real estate
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The borrowers must allow the SBA to review its tax records
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How do I calculate my EIDL amount?
The loan amount is meant to cover two years of “working capital” (sales), with a maximum loan amount of $2,000,000 (Loans over $500k will start to be processed from 10/08/2021).
The standard calculation is “Gross Receipts” of 2019 minus cost of goods sold (COGS) times 2.
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Cost of goods sold is the total cost associated with making or acquiring a good, meaning you should only have cost of goods sold recorded if you are selling a physical product. If you provide a service, your cost of goods sold number will be zero. Your gross sales revenue will be the total sales you completed in the date range before taking into consideration any costs or payment processing fees.
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What about the Emergency $10,000 grant?
As of July 11, SBA is no longer offering $1,000 per employee up to $10,000 emergency grants.
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Are there anymore grants available now?
If you are located in NY, there is one Covid related grant available for startups open on or after September 2018.