How to Fill out Your SBA Disaster Loan Application | Bench Accounting

The SBA Economic Injury and Disaster Loan ( EIDL ) is a low-interest loan for little businesses affected by COVID-19 .
If you ’ re not familiar with the loanword so far, you can read our complete steer in just 6 minutes. .
here ’ s how to apply for the loanword and fill out your application .

Where do I apply?

You can apply through the SBA web site here .

At a high-level, what does the application process involve?

  1. Complete the streamline initial application on-line .
  2. Gather all necessary documents listed in this guidebook to prepare for the loanword application process .
  3. The SBA reviews your citation and requests extra documentation. A loanword officeholder may contact you via the on-line portal, call, or e-mail .
  4. If approved, you accept or decline your lend. If you approve, you receive initial spending within five days of sign .
  5. Repayments start 11 months late .

We recommend applying ASAP. You can apply on-line here .

What you’ll need to apply

ampere far as fiscal statements, all you ’ ll indigence to apply is an income statement spanning February 2019 to January 2020. ( Check out our CPA-reviewed steer on income statements here ) If you don ’ t have one, Bench can do your 2019 bookkeeping and get you a completed income instruction, fast. Learn more .

The application form (step by step)

Section 1: Disclosures

This part asks you to verify your eligibility in two ways : first, select the type of occupation you are applying on behalf of. Secondly, you will be asked to check off each corner listing the SBA ’ second eligibility requirements. If you are unable to check each box, you may not apply .

Section 2: Business information

This section makes up the bulk of your application. You will need your income statement as of January 31, 2020 on hand. It is crucial to note that not all answers are required .
Questions to watch out for:

  • Applicant ’ south Legal name : Use your business name, shown precisely as it appears on your tax return .
  • business Phone Number : Use a personal telephone number so it ’ s easy to get a appreciation of you .
  • Gross Revenues for the Twelve ( 12 ) Month Prior to the Date of the Disaster ( January 31, 2020 ) : This numeral will be on your annual income instruction
  • cost of Goods Sold for the Twelve ( 12 ) Month Prior to the Date of the Disaster ( January 31, 2020 ) : This count will be on your annual income argument
  • compensation From other Sources Received as a consequence of the calamity : tilt any grants received

only fill out the sections not marked by a red headliner if they apply to your business. For exemplar, you should not fill out “ Non-Profit Cost of Operation for the Twelve ( 12 ) Month Prior to the Date of the Disaster ( January 31, 2020 ) ” unless your business is a nonprofit organization .

How to calculate your gross revenue

On the application, you ’ ll be asked to state your commercial enterprise ’ crying gross. If you don ’ deoxythymidine monophosphate have an income statement prepared already, here ’ s how to calculate it yourself .
Gross revenue is the total amount of money your business received from your products and services over the last year, without taking costs into account.
How do you find your gross gross ? Add up every sale your business made over the stopping point class ( before taking into account payment central processing unit fees ). That final total is your gross tax income .
bench can help you get you caught up on your books for your application and provide you with an income argument and more calendar month to calendar month. Learn more about who we are .

How to calculate your Cost of Goods Sold (COGS)

The application will besides ask for your cost of Goods Sold ( or “ Cost of Service ” if your business sells services ). Your income statement will have this information. But again, if you don ’ triiodothyronine have an income instruction, hera ’ s how to calculate your COGS. ( You can besides review a more in depth article on Cost of Goods Sold in precisely 7 minutes )
COGS is the entire cost associated with making or acquiring any goods sold during the report period .
That includes raw materials and the monetary value of direct parturiency. It can besides include disk overhead costs directly connected to your profit-making activities—like utilities for a manufacture adeptness, for exemplify .
There are two crucial things to note about calculating price of Goods Sold :

  1. COGS is calculated based merely on products you actually sold to customers and doesn ’ deoxythymidine monophosphate include inventory you placid have on hand .
  2. It ’ s all about the production costs you incurred, and doesn ’ thyroxine include broader disk overhead expenses for the cosmopolitan operation of your business. ( Check out our explanation and overview of overhead expenses )

COGS = Beginning Inventory + Inventory Purchases Made During the Reporting Period – Ending armory
The three numbers involved in your COGS calculation are:

  1. Beginning armory : The value of the product you started with. This should be the demand like count as your ending inventory from the previous report menstruation .
  2. inventory purchases made ( during the report period ) : The rate of what you added throughout the class .
  3. Ending stock : The value of what ’ sulfur left over at the end. If you have a smaller business, you will physically count everything that ’ s leftover. If you have a bigger operation, you ’ ll do spot checks on your stock .

Need a refresher on inventory management ? Try our guidebook on everything you need to know .

How to calculate Cost of Service (COS)

If you ’ re a services provider, you alternatively need to calculate your Cost of Service, which is simpler than COGS .
cost of Service is equitable all the costs you incur during the march of providing your service. so if you ’ re a lawyer and you need to pay $ 8 to print a few hundred pages of a contract on behalf of a customer, that $ 8 is partially of your COS .
If you ’ ve been keeping up with bookkeeping, this shouldn ’ t be besides unmanageable. If you haven ’ thyroxine been categorizing your transactions as you go, this will be catchy. If you need help with your retroactive bookkeeping and fiscal statements, learn how Bench can help .

Section 3: Business owners information

first base, indicate whether your business is in full owned by another occupation. You would only select this if your business was a subsidiary company of another company .
If your commercial enterprise is owned by individuals, you will need to fill out an Individual Owner part for each member of your business that owns 20 % or more. Click the “ add extra owner ” box as many times as required. These individuals should be mindful that the SBA will probably run a citation check on them adenine well .
You will need to include personal information here, such as :

  • SSN
  • Date of birth
  • Place of birth
  • Whether you’re a US Citizen
  • Residential street address

Section 4: Additional information

The first three questions ask you to specify whether any applicants – including any extra owners – have been involved in condemnable charges. This is not constantly a heavily disqualifier for the SBA, which is why it was not included in the Disclosures incision, but may dramatically affect your chances of acceptance .
Fill out the section in blue only if you have hired a service to complete your application for you, or asked person else to fill it out on your behalf. This would include asking an employee to fill out your application .
You ’ ll want to double-check your banking information. You can find your nine-digit bank routing number on a check, normally on the bottom right corner. Check with your bank if you ’ ra unsure—it ’ mho not always listed on-line, but sometimes it ’ ll be listed in your deposit portal or through a digital void discipline .

Frequently asked questions

What is the $10,000 grant about?

The CARES stimulation software introduced a newly measure to allow businesses in operation on January 31, 2020 to receive substantive fund deoxyadenosine monophosphate promptly as possible. The concession program was closed on July 13th when the $ 20 billion allocated to it had been expended. here ’ s our analysis on the change .

How large can the loan be?

Up to $ 2 million, but the SBA will determine the amount available to you based on your operate expenses. This will probable be an appraisal of your manoeuver expenses over a six-month period. If the approve come is besides short, you can work with your lending policeman. If it ’ s excessively much, you ’ ll be able to select a smaller loanword total on your loanword portal site .
At this time, reports say that EIDL loans are being capped to $ 150,000 to ensure there are enough funds to address need .

When do repayments start?

For loans received in 2020, payments are deferred for 24 months from when you received the funds. For loans received in 2021, payments are deferred for 18 months .

How long will the loan take to process?

disaster loans are normally expedited. however, the SBA has never had all 50 states and territories eligible to apply at the like time before, so no official timeline exists. After applying, you will besides be assigned a loan officer who will work with you through the duration of your loanword. Being quick to respond to your loan officer will allow you to reach an agreement flying .

What if the application is declined?

You ’ ll receive a written comment explaining why you were denied. Your business has six months to provide modern information, and to provide a written request for reconsideration .

Do I have to accept the loan?

No, you can choose to decline the lend. So it doesn ’ deoxythymidine monophosphate hurt to apply, particularly considering this like information will probable be required for any other loans you choose to pursue .

What is the filing deadline?

December 16, 2020 ( this varies slightly by state—some state deadlines are up to December 21 ). however, there is a seemliness period : if you miss the deadline, you may inactive apply with a written explanation as to why the deadline was missed .

What are the recordkeeping requirements for the EIDL once I have the loan?

part of the recordkeeping requirements for holding an EIDL lend includes maintaining “ current and proper ” records for the most holocene five years until three years after your lend maturity or after the lend has been paid in fully. This will entail an income statement, a balance sheet, indemnity policies, tax returns and refer filings, records of earnings or dividends distributed, and records of compensation to owners or shareholders. ( Read more in our 2 moment walkthrough here )

If you ’ ve accepted an EIDL and want to remain compliant, Bench can help .

What if I already have an existing SBA loan?

The SBA is granting automatic deferments through December 31, 2020. You ’ re allowed to have more than one SBA lend. The SBA will make six months of payments on 7 ( a ) and 504 loans for you ( this does not include the EIDL ) .
You can read more in our 2 infinitesimal usher on how the SBA is covering loan payments on choice SBA loans during COVID-19 .

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Category : Finance