Detailed Explanation of the US Economic Injury Disaster Loan (EIDL)

July. 05,2023
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