As I mentioned above, there is grant money to be had. Everyone should check and see if your county or state or city or municipality or wherever you live is offering grant money. We received a decent amount from the county we work and live in.
Seth,
I am right with you. I got what i need from the PPP.
As I hate debt and might bounce from this line of work I have not done paperwork.
Think I might go for it, put it in an account just incase I decide to stay.
I do not trust the government and I distain the slavery of debt
1 Like
Hope everyone who applied for the sba loan check their email this week. I did, fill out a few questions and the money was deposited into my bank account. Amazing fastest loan approval ever!
I applied for EIDL in March
Credit score got pinged on April 9th
“Create a portal” email same through on Sunday.
Approval email and closing docs yesterday.
I’m still in the dark about how the EIDL is supposed to be used with / post PPP, but I’d rather have the money available than miss the bus because the program ran out of money again.
Something don’t feel right about it, but that may be my deep seeded distrust of the Government. I’ll be dropping the EIDL funds in a separate account and revisiting the situation on June 29th.
1 Like
The allowable uses for EIDL money are a lot broader than the PPP. Any normal ‘operating expenses’ are allowed. You just can’t double dip by using it for the same payroll periods as the PPP. But once the PPP is used up, you should be clear to use the EIDL for future payroll.
A few don’ts, off the top of my head:
•Can’t be used to refinance longterm debt (I believe a credit card that would’ve been paid off in the normal course of business is different, as it’s not a term loan)
•Can’t be used to relocate (unless you get written permission from the SBA)
•Can’t be used to pay distributions or bonuses
Here’s the full pdf of the loan agreement:
1 Like
SBA pinged my credit a month ago. Nothing since. No advance, nothing. Well see what happens. Checked my spam and quarantine and didn’t see anything in there.
I just read the full agreement, there’s actually not too many stipulations on this money. And the few that there are, aren’t very Onerous.
1 Like
Stupid there putting stipulations on how you use it. This is pissing me off now.
What’s the difference how you use it. as long you use it to help financially . Say you can’t use it to go to gamble in Vegas , you can’t use it to fix your house. You can’t use it to go on vacation. Wtf man If you have pre existing loans, an you can pay it off to help you financially ;then why are they not allowing that, an what are they going to do if you do use it for that.
This is a buzz kill
So if I go to Vegas an blow it all what are they going to do throw me in jail. It’s a loan
30 years as long as make my payments. What the hell man.
Guess I’ll just leave it in my account for 12 months it looks pretty in there , an I’ll give it back at the 12 month marK. 
Are you saying you may stop your window cleaning business, if you’re looking to sell let me know. You’re over in the Seattle area, right? I thought about it after the fact and left ya a vm on your office number.
@sethfenster @Infinity @dgalkin
I’m going to read the pdf that was posted in the thread about the EIDL, but do you guys know if we’re allowed to use the EIDL funds for marketing? Do any of you know if there’s any type of an account the funds are not allowed to be put in? I was thinking about putting them in a CD for a few years until I know the economy is more stable…
I think I read there’s no penalty for paying back the loan early, anyone have something different to say about that?
I thought about putting the money also in my savings act , but I think you’re still occurring interest on the loan for the first 12 month . It’s just no payments
When you read the pdf, you will see that there are few stipulations on how you use it. There will likely be little if any oversight as well. But it is a loan, not a grant. I would bet that there are very similar terms in most loan paperwork. Which is fair. If they loan you the money and you pay back with interest, what do they care if you blow it in Vegas on hookers and booze?
Office ladies will pass info on to me this weekend. Not a chance I listen to voicemails this weekend. And yes, just outside of Seattle
Personally, I think the stipulations are pretty reasonable. They’re trying to discourage people who don’t really need it. They have a finite amount of money to lend out, and I’m guessing they are anticipating having to write off a lot of them due to future bankruptcies.
@Frozone, I wouldn’t recommend sticking the funds in a CD. If you get audited, the SBA is going to want to see evidence that you actually “needed” the money.
Stick it in a separate business checking account and find some way to spend it in your business in a reasonable timeframe, like 6 months or so (keeping immaculate records, of course). If you happen to build up a stockpile in your regular business account while you offset expenses with the loan money, then that should be ok. That’s pretty much what we plan on doing with our EIDL.
Marketing is a definite operating expense, in my eyes.
1 Like
That’s what I’m saying ! I was looking forward to all of this . Now I have to be responsible with it. 
Really lol 
. I should of read the fine print. As the saying goes it’s to good to be true.
Oh man I need a drink , an I’m using my money not there’s.
1 Like
good to know.
I’d prefer to blow my money on Disney land, and Pastries. 
Oops, I kinda forgot that it was Memorial Day Weekend, because I’m working this weekend. lol Sorry man.
Man, You’ve got sage business advice.
Alex, I think I’ve seen 1.30% APY on a certain checking account (I’d have to look again). Do you know of any that have higher interests rates?
I’ve got cash on hand to get me through for 2 or 3 years, so maybe like you’re saying I could just use the loan for expenses and reimburse that account with my normal checking account?
That’s dumb. I mean its not, but it would be much gooder if it wasn’t collectin interest. lol
I think you guys have done all the hard work for me. bahaha.
Thank you all!
Ally bank has 1.5% savings accounts, IIRC.
I don’t claim to be an expert in all of this; you’re best off checking with your cpa or attorney. But the way I read the contract, they want the ability to see how every cent was spent. That sort of implies that they want to see it spent (though they do not have any set time limit, I feel like the quicker it can be spent, the easier to justify the need and the easier it will be to keep track of effectively). The loan amounts were based on 6 months of operating expenses, including payroll.
What you do with your regular business income should be up to your discretion. I.e., sock it away if you like.
There is a provision in the agreement about not paying distributions or bonuses. It’s written very broadly, but I can’t imagine they intended it to apply for the entire 30 year term of the loan. I think once the loan money is spent up, and you can demonstrate an actual profit again, you would be safe in taking distributions again.
I’ve already gotten an offer, from them I just have to accept it.
I’m speaking in terms of if you get a random audit after the fact. They will be checking up on how at least some of the money is spent, most likely focusing on the larger loans. But I’m guessing there will be a small percentage of the smaller loan recipients getting audited, as well.
Ahhh, okay. That makes sense.
