For small businesses that are looking for financial support and funding sources to manage the impact of COVID-19, there are a lot of commercial programs that can help them. The Economic Injury Disaster Loan Program is one of the financial plans that you need to consider if you need financial help. We all understand that coronavirus has affected most of the industries, and due to this reason, it can be hard for employers to pay their workers. As an entrepreneur, before you apply for this program, make sure that you understand how it works. In doing this, it will help you whenever a problem or a misunderstanding arises. Let us see how a business can benefit from this EIDL program.
1. Few Requirements Needed
Unlike other types of loans that we have, it is crucial to understand that EIDL is the right program that you can turn to in case of a disaster such as COVID-19. When you want to get financial assistance from this program, you only need to ensure that you have allowed the SBA to review your business tax records. It is among the perfect steps that you should not omit in this process if you want to know the requirements that you need to meet. On the other hand, you can have a Long Island tax attorney who will help you to understand all the documentation that you need to have. With this expert, it will be easier to understand more concerning this program.
2. Can Apply For Emergency Loan
If you decide that you will use this program, note that it will help your business’s financial problems for the short term. Of course, most of the employers will ask, how soon can you obtain the funds with this program? With this program, you will realize that it partners with the CARES Act, and it establishes an emergency grant that helps most affected businesses. Employers need to understand that they can request an advance on the loan of not more than $10,000, and the SBA will distribute it within a maximum of three days.
3. Quick Approval
Another reason why you need to use this program is that first-year tax returns are not required for approval. Also, your loan approval can be based on your credit score. Before using this program, most applicants will need to know when to expect the funds. However, once you apply, you will be given a loan officer. Make sure that you respond to their questions quickly, and your application will be processed faster. However, if your loan involves an unprecedented amount of money over your entire country, the credit will take longer than usual.
4. pply For Huge Amount of Money
If you are applying for a COVID-19 economic injury disaster loan, know that you can qualify for a maximum credit of up to $2 million. Remember that these loans are based on your actual economic injury determined by SBA. Once they approve your first loan, you can ask for an increase in the loan amount within the two years following your loan approval.