Market-View

Another Shot at the SBA EIDL $10,000 Free Money Lottery Giveaway?

Hi there. This is Jay Carter with another Market-View tip for small business owners.

If you haven’t already applied and received approval for a PPP Loan—before you proceed with my recommendation about the EIDL program
-- please go to my previous post entitled “Another Shot at the PPP Loan Program” and follow those recommendations first.
Due strictly to the relative sizes of these programs, your chances for approval under the PPP Loan Program are higher than with the EIDL program.

However, once your PPP application is in the hands of a solid lender, you should also check out the SBA’s EIDL Program (you can find information on this program at www.SBA.gov).
This is the one you may have heard of that is a grant program –this means “free money” of up to $10,000 per company.
The problem is that the SBA website is not currently taking applications for this program due to an overwhelming number of applications received by the SBA in the past 2 weeks.

We have been given no guidance if the application process will reopen, despite the fact that the Senate and Congress are expected to boost this program by $60 Billion later this week.

One hint maybe this post on the SBA Website:
Notice: Lapse in Appropriations
SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.

Okay, so maybe they’ll reopen applications once the new funding is approved, but I am not hopeful that this will happen. On the same page of the SBA website it says,

“Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.”

This may be the final nail in the coffin for EIDL application hopefuls who are not already in the queue.

My advice is this: check the SBA website frequently for updates on the status of the application process and if new applications ARE being accepted, go for it!
Apply right away, as it only takes about 3 minutes to complete and you may not have another chance.

These unprecedented times call for unprecedented actions by small business owners. During the current economic crisis, if you have questions about surviving the Coronavirus as a small business owner,
please contact a Market-View professional for a fee-free consultation.

Don’t forget that Market-View’s mission is to help small business owners preserve value, increase value, and prepare their businesses for a successful future sale or other exit transaction.

We’d love the opportunity to understand your unique situation and empower you with the information and market-based insights you need to make the very best decisions possible about the future or your business.

That’s Market-View’s small business tip for today. Good luck with your EIDL application and may God bless you and your small business.

Another Shot At $10,000 Cash Giveaway Another Shot at the SBA EIDL $10,000 Free Money Lottery Giveaway? Hi there. This is Jay Carter with another Market-View tip for small business owners. If you...

Clearing the Confusion Over Main Street New Loan Facility and the Main Street Expanded Loan Facility: Should You Apply?

Hi there. This is Jay Carter with another Market-View tip for small business owners.

The Main Street New Loan Facility (“MSNLF”) and the Main Street Expanded Loan Facility (“MSELF”) have been authorized under section 13(3) of the Federal Reserve Act and are intended to facilitate lending to small and medium-sized businesses by Eligible Lenders. The combined size of these two programs will be up to $600 billion.

Small business owners across the country are still hungover from the mass confusion created by the SBA and many lenders over the recently over-subscribed Paycheck Protection Program (“PPP”). Now, the Federal Reserve has approved the much larger MSNLF and MSELF programs and banks are bracing for a new wave of cash-starved businesses lined up for a chance at these funds. It is expected to be a couple more weeks before banks are able to accept applications for these loans, but if you’re thinking about getting one, now is the time to get yourself ready.

If you’re considering applying for either of these programs, here are some tips that should save you some time:

1) Read the Term Sheets on these two programs. They are 2 pages each and are pretty easy to follow. We have posted these at www.market-view.com.

2) Figure Out if You Are Eligible. Your bank will ultimately determine your eligibility but do a couple of quick calculations to see if you are in the ballpark.
a. Do you have 10,000 or fewer employees?
b. Was your revenue for 2019 under $2.5 billion?
c. Was your business created in the US?
d. Are most of your employees based in the US?
e. Was your company’s EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) for 2019 at least $250,000?
f. Will your total debt service (including the new loan) be less than 4 times your 2019 EBITDA?
3) Contact Your Banker. If you answered YES to ALL of these questions, you may qualify for one of these programs. If you do, contact your banker and get in their queue for applications.

4) Gather Up Your Stuff. Every bank will have slightly different documentation requirements, but to get a head- start, have at lease the following available to provide to your bank immediately:
a. Last 3 Full Years’ Income Statements and Balance Sheets
b. 3 Most Recently Filed Federal Tax Returns (business)
c. Year-to-Date Income Statement and Balance Sheet
d. Debt Schedule: list all existing loans including the lender, loan amount, payment amounts, availability (the unused portion of loans or lines of credit)

These unprecedented times call for unprecedented actions by small business owners. During the current economic crisis, if you have questions about surviving the Coronavirus as a small business owner, please contact a Market-View professional for a fee-free consultation.

Don’t forget that Market-View’s mission is to help small business owners preserve value, increase value, and prepare their businesses for a successful future sale or other exit transaction.

We’d love the opportunity to understand your unique situation and empower you with the information and market-based insights you need to make the very best decisions possible about the future or your business.

Well, that’s Market-View’s small business tip for today. Good luck if you decide to apply for a Main Street Loan and may God bless you and your small business.

What You Need to Know About the Main Street Loan Program Clearing the Confusion Over Main Street New Loan Facility and the Main Street Expanded Loan Facility: Should You Apply? Hi there. This is Jay Carter with ano...