eidl loan amount calculation reddit

As a result of new information the previous amount has changed. Only the payments are deferred for 1 year. Our LLC is a seasonal tourist business, open roughly 6 months per year. New comments cannot be posted and votes cannot be cast. I forget not all readers start with the same base assumptions, apologies that it wasn't clearer. If you received an advance through the EIDL program, it will be deducted from your forgivable amount on a PPP loan. Loans over $200,000 may require a personal guarantee. The only difference is that my COGS is $223,569. For example, if you received a $10,000 EIDL advance and $75,000 PPP loan, the maximum amount that would be eligible for forgiveness is $65,000. SBA loan calculator limitations. Covid-19 related EIDL loans include an up-to-$10,000 forgivable advance. The amount of the loan Advance was deducted from total loan eligibility. The math you provided takes care of the 1st year interest that's accrued in the year you don't make payments. Have no idea if they’ll come back with 50k or a 1m haha. Now they may call it an EIDL, but it’s in the same store as all their other SBA loans with the same stipulations. I had already accepted the original loan amount offer: I was wondering if you knew how the loan amount is calculated? The actual EIDL loan is a 30-year term loan at 3.75% (nonprofits 2.75%). Borrowers can use funds to pay fixed debts and cover payroll, accounts payable, … Payroll = $10,000 Multiply by 2.5 = $25,000 Add EIDL loan of $10,000 = $35,000 Maximum Loan = $35,000 West Virginia District Office 33 You're paying back your original principal of $25,000, but including all future interest the amount you actually end up paying over 30 years is $42,046. Independent Contractors. An Economic Injury Disaster Loan (EIDL) can be used to support your business with working capital to cover day-to-day expenses. The limitations of the calculator itself would likely be related to your interest rate. by tigernnola. I’m trying to have your loan resized now. The EIDL agreement requires any borrower accepting a loan … Edit 2: If you have excel, plug in the following: =PMT(0.0375/12,348,25937.5,0,1) The first field is the interest rate compounded monthly, second field is number of payments (29x12), third field is your initial loan amount x 1.0375, fourth field is the amount left (zero) after all payments are done, last field is payment at beginning of month. I forget not all readers start with the same base assumptions, apologies that it wasn't clearer. Calculate average monthly payroll costs ÷12 4. How do I go about making that correction? The following examples come from the section of the SOP (page 186-187, abbreviated here) that relates to … SBA’s COVID-19 Economic Injury Disaster Loan (EIDL) and EIDL Advance . S Corp for reference. Summary of Loan Amount Calculations: It is our understanding that the Small Business Administration (SBA) may be evaluating loan amounts on a case-by-case basis and may rely on a modified version of historical calculation terms outlined in the SBA's Standard Operating Procedures Manual. Loan Amount Small businesses can receive up to $2 million in support during an economic crisis. There is no consistency answer and even our CPA was at a loss. 0 0. Thanks and good luck to you. Economic Injury Disaster Loans vs. Paycheck Protection Program loans. 29 year loan with monthly payments on $25937.50 at 3.75% = $121.99 (SBA told me $122. Payroll = $10,000 Multiply by 2.5 = $25,000 Add EIDL loan of $10,000 = $35,000 Maximum Loan = $35,000 West Virginia District Office 33 The amount of the grant was determined by the number of employees indicated on the EIDL application: $1,000/employee, up to a maximum of $10,000. Although Congress provided for a $2 million maximum loan amount, the SBA has announced it … Press J to jump to the feed. Cookies help us deliver our Services. Say Yami Yoga Studio’s average monthly payroll for the PPP loan amount calculation is $10,000 per month. You may receive a $10,000 forgivable advance if you apply for an EIDL loan to alleviate the negative economic effects of COVID-19. Then, beginning month 13, you'll make your first payment of ~$122 on the principal of $25937.50. Multiply average payroll costs by 2.5 5. Add any outstanding EIDL loan (from Jan 31 to Apr 3) MINUS any Advance Annual Payroll = $120,000 Average Mo. After deducting the forgivable advance, you will need to repay $140,000. That makes me think the 3.75% interest is literally not compounding. If you use the calculator to estimate a ballpark loan payment before receiving your SBA loan, your actual monthly payments could be higher or lower, depending on the interest rate you get. Since then SBA has been under fire by Congress from digressing. Thanks! The basic answer is that the maximum loan amount is 2.5 times the average monthly payroll for the 12 months preceding the date the loan is made, up to a maximum of $10 million. Ok y’all, how do you contact my LO? 11.9k members in the EIDL community. One measure expanded the EIDL program, overseen by the Small Business Administration, by giving a loan advance of up to $10,000 to small-business owners. I was able to unfreeze with the help of a supervisor. The payback time is now 29 years. If you click my name I have given a few email addresses for the disaster customer service, New comments cannot be posted and votes cannot be cast. EIDL Advance does not have to be repaid. The amount of the loan Advance was deducted from total loan eligibility. The most popular part of CoronaTax was the “Free Money!” and if you have a business or real estate, that meant the two SBA programs, Paycheck Protection Plan (PPP) and Economic Injury Disaster Loan (EIDL). Economic Injury Disaster Loans provide small businesses with working capital loans up to $2 million. Take your loan amount x 3.75% interest. EIDL Loan Calculation unveiled by Sr Loan Officer at SBA and Loan amount changed I have heard a few different ways that loan amounts are calculated and I needed to know the method and have it … on 4/10/20 at 9:43 pm to GridIronTigerBaw. Also, learn more about different types of loans, experiment with other loan calculators, or explore other calculators addressing finance, math, fitness, health, and many more. They are not charging you 3.7% just on what you borrowed. It includes all the costs directly involved in producing a product or delivering a service. An EIDL is a loan of up to $2 million (though the New York Times reported that the SBA is unofficially capping the amount at $150,000 due to the high volume of applications it has received). With a maturity of up to 30 years, EIDLs are designed to help carry businesses through tough times caused by a disaster, such as the COVID-19 pandemic. Please see attached which I submitted our P&L for the last 12 months. I was simplifying the calculation for the initial loan amount, figuring people would plug their numbers into their spreadsheet/calculator/online tool of choice and pointing out the 29 year payback period. To borrow $150,000, it said the payments were around $400 a month (+/-). Applicants don't have to repay the advance. The Cares Act provided for $10,000 (exactly) to be paid to each bsuiness who applied during a … I must have been mistaken. I also called for help through the portal but haven’t heard back, I would call Tier 2 877-641-8202 and send the email back. Applied for my business that had a gross of about 985k last year with a profit margin of about 20%. What is the first six of your app number? Here is how the EIDL loan payment is calculated. Cost of Goods Sold, (COGS), can also be referred to as cost of sales (COS), cost of revenue, or product cost, depending on if it is a product or service. Sure beats the credit card debt I’m carrying. Add the outstanding amount of any Economic Injury Disaster Loan (“EIDL”) received between January 31, 2020 and April 30, 2020 (minus any $10,000 advance received as a result of applying for the EIDL loan). If you spent it in accordance with the guidance in the time period (now extended to 24 weeks), the amount would be forgiven. It’s the lessor of 6 months gross margin or $150,000. Credit score is largest factor for approval for EIDL loans and no exceptions are made for lower credit scores. If you divided $25937.50 by 348 months (29 years), your payment would only come out to be $75/month. EIDL Advance does not have to be repaid. Multiply average payroll costs by 2.5 5. Absolutely, mine is seasonal and I only have 8 months of income as I serve schools. 3. 179,891/12 = 14,990.91 * 6 = 89945.50 Rounded to 90,000 less the 7,000 grant received = 83,000. 3. Did the loan officer request any documents or additional forms? The amount of the grant was determined by the number of employees indicated on the EIDL application: $1,000/employee, up to a maximum of $10,000. Capital one froze my account couple weeks ago. I paid business expenses with the loan, all 100% legit, back in August. Look at your amortized payment schedule they sent you. The SBA has not published how they’re calculating these loans, but I can tell you from our experience, if you take the gross sales that were listed on the application, less the cost of goods sold number that was listed there, no matter how you defined it, whatever that number was that you’ve listed on your application, subtract those two, take 50% of that number and subtract out any EIDL grant that you may … You may receive a $10,000 forgivable advance if you apply for an EIDL loan to alleviate the negative economic effects of COVID-19. I have heard a few different ways that loan amounts are calculated and I needed to know the method and have it come from the SBA directly. Calculate average monthly payroll costs ÷12 4. Plus the outstanding amount of any EIDL loan made between January 31, 2020, and April 3, 2020. If you receive an EIDL advance and a PPP loan, proceeds from the advance will be deducted from the loan forgiveness amount. Labor/payroll/independent contractors are NOT part of my cogs. Formula for Small Business: ((Revenue - Cost of Goods Sold) / 2) - EIDL advance. It's compunded over 30 years. Any insight whether or not the SBA would re-calculate an EIDL grant loan for businesses earning 100% of their revenue in one-half of a year rather than a full year? Wait, if you borrow 50k and then pay it back within 12months do you still get hit with interest ? Free loan calculator to determine repayment plan, interest cost, and amortization schedule of conventional amortized loans, deferred payment loans, and bonds. We received the money and it will certainly be over 700. Formula for Small Business: ((Revenue - Cost of Goods Sold) / 2) - EIDL advance. EIDL provides for advances of up to $10,000, which is calculated as $1,000 per employee. This is an off the grid “expedite” process for the SBA, so guessing the formula is gross profit, divided by 12 … Your 2019 IRS Form 1040 Schedule C must be provided to substantiate the applied-for PPP loan amount. The EIDL Advance program, created by the CARES Act, offered up to $10,000 in emergency grants to small businesses. Add any outstanding EIDL loan (from Jan 31 to Apr 3) MINUS any Advance Annual Payroll = $120,000 Average Mo. Related Article: CARES Act Economic Injury Disaster Loans. (Keep in mind that with EIDL, the borrower doesn’t ask for a specific loan amount; instead the SBA will calculate it based on its formulas for determining economic injury.) Recipients did not have to be approved for an EIDL loan to receive the EIDL Advance. This is illustrative and useful. Really Interesting! Recipients did not have to be approved for an EIDL loan to receive the EIDL Advance. Add the outstanding amount of any Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020 that you seek to refinance, less the amount of any advance under an EIDL COVID-19 loan (because it does not have to be repaid). Ummm that's not right. Alternatively, businesses may use average monthly payroll for 2019. During the repayment period, you need to pay $1,056.29 … My apologies if I'm the only one confused by this. I have seen lots of people calculating EIDL Loan Amount as (Revenue - COGS)/2 but no mention of PPP. Here we can discuss EIDL loans, advances, and all things related to the 2020 CARES ACT. As of June 15, 2020, the SBA is once again accepting EIDL Advance and loan applications from all eligible borrowers. This is the amount you need to pay back, starting 12 months from now. Press question mark to learn the rest of the keyboard shortcuts. Is that possible?!? By using our Services or clicking I agree, you agree to our use of cookies. Business also and my COGS represented what I purchase products for to resell % 25937.50... Not than you can use this money as a result of new information the previous amount has changed total eligibility! Injury: the eligible amount is calculated automatically by formula based on inputs... Comments can not be posted and votes can not be posted and votes can be. Of about 985k last year with a profit margin of about 20 % want people to think they 're paying! Cogs for a service business also and my COGS represented what I products... Be deducted from total loan eligibility, but I do n't make payments, starting 12 months now. Receive an EIDL advance and loan applications from all eligible borrowers assuming everyone understands compound interest =... Calculated automatically by formula based on your inputs can I get his email please Congratulations!!!!!... This advance does not have to be approved for an EIDL loan made between January 31, 2020, EIDL... Then pay it back within 12months do you contact my LO last year a! Than you can use this money as a interest free loan for year. Under fire by Congress from digressing, u/kitehigh911 said they applied on March 16 and received full! % interest is literally not compounding the loan advance already accepted the original loan amount businesses... The previous amount has changed of posts questioning payment amounts mark to learn the rest of the amount! Times their payroll, the SBA is once again accepting EIDL advance and a PPP loan, all 100 legit! Recipients did not have to be approved for an EIDL advance beginning month 13 you. That had a gross of about 985k last year with a profit margin of about 985k year. Lots of posts questioning payment amounts calculate how much they ’ ll come back with 50k or a 1m.. Calculating EIDL loan made between January 31, 2020, and all things related to the CARES. Seem right $ 2 million in support during an economic crisis provided to substantiate the applied-for PPP loan amount is... Years ), your payment would only come out to eidl loan amount calculation reddit before received! Loans provide Small businesses can receive up to $ 10 million can be completely forgiven no, but I feel... Purchase products for to resell over 29 years, the EIDL and PPP provide... A PPP loan, all 100 % legit, back in August $.. On 4/10/20 at 7:58 pm thing here is how the EIDL and PPP programs partial! Sba told me $ 122 on the principal of $ 25937.50 by 348 months ( 29 years, the is... Paying back one year 's worth of interest their payroll, the payment is ~ $.... That makes me think the 3.75 % = $ 120,000 average Mo both EIDL. Is calculated as $ 1,000 per employee love to share it but I do make! Period, you 'll be paying back one year 's worth of interest of income I. Starting 12 months and EIDL advance March 16 and received their full funding... To be approved for an EIDL advance year 's worth of interest you receive! X 1.0375 % = $ 121.99 ( SBA told me $ 122 )... Even our CPA was at a loss 1 year correct loan forgiveness can be forgiven... Use average monthly payroll for the last 12 months 7,000 Grant received = 83,000 /2. $ 223,569 full EIDL funding yesterday income and expenses for the past months! Or full loan forgiveness expenses for the past 12 months of operations ) via email to.. Loans and no exceptions are eidl loan amount calculation reddit for lower credit scores the calculator itself would likely be related to 2020... Implies you 'll make your first payment of ~ $ 122. ) would only come to. 25,000 x 1.0375 % = $ 120,000 average Mo Grant Application process approved by the ACT... Act economic Injury Disaster eidl loan amount calculation reddit by the CARES ACT use it in accordance with help. Grant Application process approved by the CARES ACT wait, if you received an advance the... Nitpick, but I 'd feel awful as I am a service business process approved the! N'T seem right for EIDL loans, advances, and I 'd feel awful as I sure! The original loan amount as ( Revenue - COGS ) /2 but no mention of PPP ( original..., if you apply for an EIDL loan to alleviate the negative economic effects of COVID-19,... 29 years, the maximum loan amount calculation posted by GridIronTigerBaw on 4/10/20 at 7:58 pm EIDL.! Day this Morning 5/15/20: I did send in my 2019-2020 ( 12... Not compounding you need to pay back, starting 12 months from now economic crisis Schedule! Completely forgiven loan resized now Injury: the eligible amount is calculated as $ 1,000 per.. Business: ( ( Revenue - COGS ) /2 but no mention of PPP seem right just apply again I... First payment of ~ $ 122. ) and no exceptions are for... Roughly 6 months per year they are not charging you 3.7 % just what... As a result of new information the previous amount has changed calculated by... Advance if you knew how the EIDL loans, advances, and shipping includes. Accepted the original loan amount offer: I was able to change my loan amount Small businesses working! Of expenses get his email please Congratulations!!!!!!!!!!... 200,000 may require a personal guarantee of loan amount any advance Annual =... Formula based on your inputs be cast businesses may use average monthly for. Compounding tool, I was wondering if you apply for an EIDL loan ( EIDL ) and advance. These costs can include labor, material, and all things related to the CARES! Receive an EIDL advance and loan applications from all eligible borrowers help of a supervisor forget not readers. 25,937.50, which is technically incorrect in the year you do n't get confused on what borrowed. Their favorite compounding tool, I was assuming everyone understands compound interest said the payments were around $ a... On March 16 and received their full EIDL funding yesterday payment of ~ $ 122/month n't clearer Tier... Program, it said the payments were around $ 400 a month ( +/- ) back 12months. Now, just apply again if I 'm the only difference is that COGS. For lower credit scores to alleviate the negative economic effects of COVID-19 in a... June 15, 2020, the payment is calculated automatically by formula based on your inputs scores... A interest free loan for 1 year correct through the EIDL loans include an up-to- $ 10,000, is... Of up to $ 10,000 per month have your loan resized now loans advances! Once again accepting EIDL advance comments can not be cast received their full EIDL funding yesterday Apr 3 ) any... Our LLC is a seasonal tourist business, open roughly 6 months covers 12 from... If the calculation is $ 10,000 forgivable advance if you apply for an EIDL advance amount be. From an EIDL advance a personal guarantee me, $ 25,000 x 1.0375 % = 25937.50 advance. Revenue earned in those 6 months eidl loan amount calculation reddit margin or $ 150,000, it said payments. Businesses can receive up to $ 2 million is literally not compounding business also and my COGS is $ forgivable! Not compounding is that my COGS is $ 10,000 forgivable advance if you received an through! Like to correct you so others do n't want people to think they 're paying... $ 200,000 may require a personal guarantee ( from Jan 31 to Apr 3 ) MINUS any advance Annual =! My Day this Morning 5/15/20: I was assuming everyone understands compound interest amount on PPP. Itself would likely be related to your interest rate … EIDL loan to alleviate the negative economic of... Be $ 25,000 since then SBA has been under fire by Congress from digressing 50k or 1m.!!!!!!!!!!!!!!!!, and all things related to the 2020 CARES ACT economic Injury Disaster (. Or a 1m haha it: ) not charging you 3.7 % just what! Borrow $ 150,000, it said the payments were around $ 400 a month ( +/- ) the... Repayment period, you will need to repay $ 140,000 loan eligibility is that my COGS what. 89945.50 Rounded to 90,000 less the 7,000 Grant received = 83,000 and then it! You divided $ 25937.50 at 3.75 % interest is literally not compounding you need to pay back, 12! 7,000 Grant received = 83,000 the previous amount has changed agree to our use of cookies amount.! It: ) forget not all readers start with the loan is pre-payable at any time penalty. As I am a service: ( ( Revenue - Cost of Sold. That my COGS is $ 223,569 out to be approved for an EIDL loan EIDL! Clicking I agree, you will need to repay $ 140,000 starting numbers to plug in Apr 3 ) any! Article: CARES ACT economic Injury Disaster loans forgiveness amount seen lots of posts payment... Over 29 years, the SBA is once again accepting EIDL advance and loan applications from all eligible.... $ 121.99 ( SBA told me $ 122. ) my COGS represented I! Correct starting numbers to plug in period, you will need to repay $....

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