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SBA: EIDL Use Of Funds Requirement & Rules

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eidl 2.0

The SBA-guaranteed Economic Injury Disaster Lending (EIDL) program is a loan program that is accessible to small companies, small agricultural cooperatives, and the majority of private organizations in disaster areas that have experienced significant economic loss.

Prior to the pandemic, the loan program provided low-interest loans to companies and households impacted by natural catastrophes like as wildfires, earthquakes, and storms.

More than 1.7 million EIDL loans have been authorized by June 2020, and the figure is still growing.

The highest amount you may get for an EIDL loan is $2 million, and the maximum interest rate is 4%.

EIDL Loan Use Of Funds

EIDL money can be utilized for working capital and routine operational expenditures such as health care benefits continuance, rent, utilities, and fixed debt payments.

Eligibility

Applicant must be physically situated in the United States or a specified area and have experienced working capital losses as a result of the coronavirus pandemic, not as a result of an economic slump or other factors.

  • Businesses with 500 or less workers are considered small by the SBA.
  • Cooperatives with 500 or fewer employees
  • Agricultural enterprises with 500 or fewer employees
  • Most private nonprofits
  • Faith-based organizations
  • Sole proprietorships and independent contractors

Businesses engaging in illicit activities, loan packing, speculation, multi-sales distribution, gaming, investing, or lending are ineligible.

The SBA is broadening the COVID EIDL eligible uses of profits to include payments on all types of company debt, including loans owned by a Federal agency (including the SBA) or a Small Business Investment Company (SBIC) regulated under the Small Business Investment Act.

COVID EIDL loan funds may be used to make debt payments, including monthly payments, deferred interest, and prepayment of business debt, with the exception of debt owed by a Federal agency (including the SBA) or an SBIC.

The SBA is implementing a new regulation stating that organizations within a single corporate group may not obtain more than $10,000,000 in COVID EIDL loans in aggregate.

Entities are considered part of a single corporate group for the purposes of this restriction if they are majority owned, directly or indirectly, by a common parent. Businesses are subject to this limitation even if they are in certain hard-hit industries and are permitted to apply the per-physical location application of the size requirement as specified in 13 CFR 123.300(e) (5)

Victor writes about celebrities, culture, movies, and hip-hop music at Gistvic.

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GSS2 Stimulus Update: Chase, Wells Fargo Deposit Confirmed

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GSS2 Stimulus payment on Wells Fargo and Chase

Some people using Chase and Wells Fargo bank account have started to receive their golden state (GSS2) Stimulus payment.

The first payment was made on August 27 and consisted of 354 million dollars divided among 600,000 payments. Some Californians are already receiving the next round of payments.

“GSS II deposited this morning. Wells Fargo checking in.” A reddit user wrote alongside a screenshot of his payment on his bank account.

“Chase confirmed,” Another Reddit user wrote with a picture of the payment on a Chase bank account.

GSS2 Stimulus delay

The state of California have warned that some of the payments might be delayed as they “may need more review depending on the situation or information we have.”

“This could include address changes, bank account changes, etc,”.

Approximately two out of every three California residents are expected to receive a payment, with a total of $12 billion expected to be distributed to qualifying citizens. MARCA News reported.

These stimulus check payments are part of the state of California’s recently passed $100 billion budget, with governor Gavin Newsom claiming that the money is there to help those who have faced financial difficulties as a result of the pandemic.

The second round of these Golden State Stimulus payments is there to help low-income parents and self-employed workers.

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