How to apply for a US SBA Economic Injury Disaster Loan (EIDL) Assistance.
- Eric Agababayev
- Mar 28, 2020
- 3 min read
SBA.gov has been overwhelmed with online applications that their server can no longer accept any online applications. Instead, they are accepting PDF applications to be uploaded on their website. This has made the process much more difficult, time consuming and prone to errors.
New York Tax Help is here to guide you through the process and help. Check our blog post about the CARES Act and the business relief.
Form # 5 - Business Loan Application
Basic application about your business
Question 1 - only select Economic Injury (EIDL)
Make sure you complete page 2 for each :
A. Proprietor or Limited Partner with 20% or more interest
B. Each General Partner
C. Stockholders or entity owning 20% or more voting stock.
4. Page 2 must be done properly or the application will be kicked back.
5. Page 3 provides a check list of all documents and applications needed.
Form P-019 - Economic Injury Disaster Loan Supporting Information
Use the dates for 12 months prior to the disaster - 02/01/2019 - 02/29/2020
If you received any help for the disaster (State or City Grants for example) - you must provide this information.
Form 413D - Personal Financial Statement
This is a really important page and should be accurate.
Must be filled for each owner filled out for Page 2 of Form # 5
I recommend using as of 12/31/2019
Document your back up - Bank Statements, Mortgage Statements, Loan documents, Automobile Statements, W2, K-1s, Profit and Loss from Rental Property and so much more.
Form 4506-T - Request for Transcript of Tax Return
Must be filled out so the SBA can request Tax Returns
Must be filled out for the business, and all owners listed in page 2 of Form # 5
They will be requesting your 2018 and 2017 Tax Returns.
Form 2202 - Schedule of Liabilities of the Business
This form to show the SBA of all your Liabilities for the business.
I recommend using date as of 02/29/2020 or 12/31/2020
Must show all debt as of that date you choose.
List Credit Card Debt as for example - "American Express Credit Card"
A. No original Amount or date
B. Enter Current Balance Due per Statement (no maturity date) - Enter Current (unless delinquent)
C. Payment amount / Month
D. Include all Credit Card.
5. List all Account Payable, Notes Payable, Mortgages, Line of Credits and other Loans individually. If you need more then one page - please continue the form and note there is a page 2.
5. Document your back up -Mortgage Statements, Loan Documents, Credit Card Statements, Vendor Statements, and etc.
Form 1368- Additional Filing Requirements (EIDL)
This form is VERY crucial and must be taken seriously as they will use this form to see if you qualify and the amount of loan you can receive.
You must enter Gross Revenue Amounts per month for the past 3 Years and the first 3 months of 2020.
So 2017, 2018, 2019 must be entered as well as January, February, and March 2020.
Page 2 is optional but can help your case. This is a projection of your profit and loss. Please contact us or your Accountant to discuss more.
Additional Documents I Recommend to Provide.
Provide the owners and the business full federal tax returns with all schedules (contact us or your Accountant to receive this). The transcript that is requested by SBA will only show the numbers but not the schedules. This will help speed up the process as they will not contact you for this info if they are looking for clarification on schedules. 2017, 2018 and if you have 2019.
Profit and Loss Statements for last 2 years.
Balance Sheets for the last 2 years.
Payroll documents - prior years W-2's for the company, State Filings, and etc.
Documentation showing that you are affected by COVID-19 like state or city issuance of proof that your business is to be closed or considered non essential.
Estimation of losses in revenue. Projections or already incurred losses.
Correspondence letter pleading your case regarding the losses and disruption in businesses.
Please review all your documents for errors or missed questions. The key is to apply without any delays in the loan as every day counts in this rough times.
Please contact us today to discuss more.
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