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COVID19 Relief FAQs Baltimore District Office: Responses to Frequently Asked Questions on PPP and EIDL Loans

Summary

This SBA Baltimore District Office FAQ, dated 4/21/2020, sets EIDL and PPP answers side by side. For the PPP it says a lender that did not send in an application, or sent it late, missed the point at which SBA had to stop accepting new applications because program funds were exhausted, and that SBA would deny an application only if the borrower had a delinquent or default status on a prior SBA loan. It says PPP lenders have delegated authority to make the decisions, so applicants must ask the lender for status because SBA cannot check it. EIDL denials can follow from unsatisfactory credit history, ineligible business activity, delinquent child support, unsubstantiated economic injury or agricultural enterprises. The FAQ puts the EIDL process at a minimum of 21 days and the PPP at approximately 10 days.

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Full text

                                                                                                                  COVID19 Relief FAQs
                                                                                                                  Baltimore District Office

                                          Responses to Frequently Asked Questions on PPP and EIDL Loans
        Questions                    Economic Injury Disaster Loan (EIDL)                                      Paycheck Protect Program (PPP)
Why wasn’t I approved?        -Unsatisfactory credit history                             The lender either did not send in the application or it was submitted late and
                              -Business activity is not eligible. EIDL assistance is     did not make it in our system before SBA had to stop accepting new
                               available only to a small business engaged in an          applications due to exhausted program funds/a lapse in appropriations.
                               eligible business activity. Business activity means the
                               nature of the business conducted by the applicant         The only time SBA would deny an application is if the borrower had either a
                              -Not eligible due to delinquent child support payments     delinquent or default status on a prior SBA loan. Otherwise, SBA’s application
                              -Economic injury is not substantiated                      system would approve the application as soon as the lender submits it.
                              -Agricultural enterprises are not eligible
                              -Not eligible due to character reasons
                              -Unverifiable Information
                              -Applicant requests a withdrawal or fails to proceed
I submitted my PPP                                                                       Many lenders accepted applications from bank and non-bank customers and
application to a bank I                                                                  prioritized submitting them for approval based on their own internal guidelines,
normally don’t do business                                                               not necessarily on a first come- first serve basis.
with and my credit is good.
I do not understand why I
wasn’t approved.
I have already submitted      Applicants who have already submitted their                Applications that were already submitted, will be processed in the order in
my application. What          applications will continue to be processed on a first-     which they were received. New applications will not be accepted until program
happens now that all the      come, first-served basis. The EIDL loan application        funding is restored.
money is gone?                portal will be re-opened once funding is restored.
Who approves my               SBA’s Office of Disaster Assistance                        All PPP Lenders have Delegated Authority, which means they and not SBA are
application?                                                                             making the decisions if the applicant qualifies for funding.
How do I check the status     Call 800- 659-2955 or email                                The applicant will have to contact the lender. SBA does not have the ability to
of my application?            disastercustomerservice@sba.gov                            check the status of PPP applications. Lenders have the sole responsibility under
                                                                                         the delegated authority to notify applicants of their status.
Will the program receive      Congress will make this decision.                          Congress will make this decision.
additional funds?
Can I request the Advance     No, a new application must be submitted.
after I submit my
application?



                               4/21/2020                        www.sba.gov/md * www.sba.gov/disaster                              Page 1
                                                                                                                 COVID19 Relief FAQs
                                                                                                                 Baltimore District Office
        Questions                     Economic Injury Disaster Loan (EIDL)                                     Paycheck Protect Program (PPP)
My lender told me my PPP                                                                 The lender either did not send in the application or it was submitted late and
was approved. It has been                                                                didn’t make it in our system before SBA had to stop accepting new applications
more than 10 days and the                                                                due to exhausted program funds.
lender has instructed me to                                                              The applicant will have to contact the lender for loan status.
call SBA. When will I get
the money?
How long does it take for      The EIDL Loan process takes a minimum of 21 days to       The PPP process takes approximately 10 days to complete.
me to get the money?           complete. However, the completed timeframe is on a
                               case by case basis.

Do I need to reapply for the   If your application confirmation number begins with a
EIDL/EIDL Advance?             “3” you do not need to reapply. Otherwise, complete
                               the streamlined loan application at:
                               https://covid19relief.sba.gov/#/
                               The loan portal will be reopened when funding is
                               restored.
Can an applicant accept        Yes. A small business can apply for an EIDL loan and
only the EIDL Advance and      later elect not to “close” or accept that loan. If they
not the EIDL?                  requested and received an EIDL Advance (by checking
                               the request box within the EIDL loan application), that
                               amount does not need to be repaid. There would only
                               be a balance due if they accepted the full amount of
                               the EIDL loan.
I am having trouble finding                                                              Visit www.sba.gov to search for a lender or consider one of the following online
a lender to accept my PPP                                                                SBA approved PPP lenders.
application                                                                              Funding Circle - www.fundingcircle.com
                                                                                         Ondeck - www.ondeck.com
                                                                                         Kabbage - www.kabbage.com
                                                                                         Loan Builder - www.loanbuilder.com
                                                                                         BlueVine - www.bluevine.com
                                                                                         Lendistry - www.lendistry.com
                                                                                         Lendio - www.lendio.com
                                                                                         PayPal – www.paypal.com



                                4/21/2020                       www.sba.gov/md * www.sba.gov/disaster                             Page 2
                                                                                                                    COVID19 Relief FAQs
                                                                                                                    Baltimore District Office
        Questions                       Economic Injury Disaster Loan (EIDL)                                      Paycheck Protect Program (PPP)
How do I apply for disaster     If you are interested in applying for an Economic Injury    Contact the bank you normally use for your business lending or where you have
assistance?                     Disaster Loan or EIDL Advance, visit                        a business account. In addition, you can contact any of the SBA PPP approved
                                https://covid19relief.sba.gov/ Apply online and check       lenders found online at www.sba.gov or in the previous section.
                                the box when prompted if you are requesting an
                                Advance. Save your confirmation number. For Disaster
                                loan questions, call 1-800-659-2955 or email
                                disastercustomerservice@sba.gov
Additional questions?           Call 800- 659-2955 or email                                 Email mdsbaloanquestions@sba.gov
                                disastercustomerservice@sba.gov


           If you are declined for a loan:
           If you disagree with the decline decision, you may request reconsideration, subject to the availability of funds.

           You can submit your request by any of the following methods:
                a. Mail your request to the address at the top of the decline letter or
                b. Fax your request to: 202-481-5931 or
                c. E-mail your request to pdcrecons@sba.gov
           Your request must:
                1.      Be in writing and be received as soon as possible (but no later than the DATE THAT IS 3 MONTHS FROM DATE OF APPLICATION
                        DECISION DATE).
                2.      Contain all significant information that will address the decline/withdrawal reason(s).




           Additional Resources:
           We understand that this a challenging time for your business and for the Nation. The SBA has local offices in your community which can refer
           you to resources that may be able to help you address the underlying reason for your loan denial.

           For more information on these services, please go to www.sba.gov/local-assistance to locate the email address and phone number for the
           nearest SBA district office and/or SBA's resource partners. Please call or email for a virtual appointment.

                                  4/21/2020                       www.sba.gov/md * www.sba.gov/disaster                             Page 3


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