Introduction the EIDL grant and loans in this video
I'm going to take some time to answer your top questions about the e ideal
grant and loan process hey what's going on everyone this the Sam Kwak one of the Kwak Brothers and as you know we've been following very closely with the EIDL
loan program as well as the EIDL grant and I've been getting a lot of questions
from you guys for the last few videos that we've done on the EIDL grant as
well as alone so I'm gonna go and take the time to answer those questions
individually now before we get started this is another reminder to go and
subscribe to our channel if you want more updates about the e idea loan
program as well as if you want to learn how to invest in real estate also as a
huge reminder I am NOT a CPA I'm not an attorney I'm not a financial adviser nor
do I represent the SBA so any questions that I answer throughout this video any
information that I share are mainly my own interpretation as was the opinion
about the SBA II I do loan program and also stick around to the very end cuz
I'm gonna give you my reasons as to why I think the e I do is completely
ignoring some applications or while you're not getting communications from
the SBA from the first place okay so the EIDL Q&A Time very first question I got is from
Ulysses Ghost is it forgivable so remember the EIDL loan program and the
PPP paycheck protection program are two separate different program the EIDL is
not forgivable other than the grant portion of it the Paycheck protection
program yes it is forgivable as long as you're using sixty percent of the
Paycheck protection program for payroll costs and there are also qualified
expenses that you need to spend on in order for the Paycheck protection
program to be forgivable but as far as the e ideal it's not forgivable but you
do need to spend it on qualifying expenses I will hold on a separate video
as to what you can and cannot use for the EIDL which every video that I'm
gonna reference from here now to the end of the video I'm gonna put it in the
video description down below so you know where to go and find it another question
is SK is saying can I use my SBA EIDL loan to pay off my home equity line
unfortunately know it because if your home equity line is used for home
purposes your personal purposes remember the SBA EIDL is for businesses it's not
meant for you to go and buy a new home or pay off your mortgage it's
for operating expenses so do keep that in mind along the same question Luiz
Santos asked so I can't use this for personal debt you're right you cannot
use this for personal debt it has to be for businesses Logan Jackson asked can I
use it for a down payment on commercial property and the answer is unfortunately
no the SBA II ideal loan program again is designed for economic injury disaster
it's not meant for you to go take the money and expand your business or
relocate into another office space or it's not men from expansion guys it's
meant so that you can stay afloat and meant for you to stay alive during this
crazy pandemic time that we're living in Dennis Prinz is asking I'm a sole
proprietor with a delivery service can I use the EIDL alone to pay for a car loan
that I use to conduct business so my personal opinion and the answer to this
is that you can still make monthly payments for your car loan out of the
EIDL but you unfortunately you cannot pay it off completely so you can
continue to make the monthly payments but not necessarily to completely pay it
off you know a single principle payment bit and binary's asking cannot use it
for trading stocks unfortunately no it does not qualify for
operating expenses according to the SBA Bertha Alvarado is asking what if we are
independent contractors so yes this SBA EIDL program and the grant program
is eligible if you are a sole proprietor or independent contractor so if you get
1099 from a company that you work for as an independent contractor yes you do
qualify if you're a sole proprietor yes you do qualify for as well in the
beginning of the application there's a spot where you check off and say hey I'm
an independent contractor as well as a sole proprietor so you do need to check
that off if you are an independent contractor EC Winkler to ask I'm an uber
driver I have a credit card that I only used for uber business can I use the
loan to make payments on the car yes you can because you're technically using the
credit card for your operating expenses so therefore yes and again make sure you
ask your accountant and talk to your accountant about what could be qualified
as a operating expenses when it comes to the SBA II ideal loan program Jacquelyn
Arash is asking I remember you said it'll apply it towards the landlords as
well however I didn't see the input for landlords so for landlords watching this
my people so from what I gather from the sp
your loan program and landlord is a business I've learned the business of
renting out homes and that's our service now it does append on are you a sole
proprietor or are you an LLC or corporation so in the beginning of the
application I believe you do need to tell them that you're not a business
with no more than 500 please or you're a sole proprietor and in the application
itself there is a field where you enter in how much rent you weren't able to
collect because of the pandemic so you have to put in whatever rent amount in
there that you were not able to collect because of the coronavirus so yes it the
SBA EIDL Loan program does also apply to landlords because being a landlord is a
business there's not a special section just for landlords you just apply as a
business okay so next question angel peeler is asking can you apply if
you don't have a business but want to use the money to start one so with the
SBA EIDL Loan program you cannot use the money to start a business you already
have to have a business for at least a year from what I understand with the SBA
EIDL Loan program and of course you would also have to had income from the
business because the whole goal of this program guys is to help your business
sustain and stay afloat during the corona virus pandemic well if you didn't
have a business nor did you have any money well what did you really lose
right so the goal of the SBA EIDL Loan program is to help existing business
that have income to stay sustainable until this corner virus pandemic passes
on so no you may not use the SBA EIDL loan program money for starting on your
business there are other SBA programs that have to do with new startups and
starting on your business so definitely go check that out again I'm not an SBA
representative I'm not an attorney I'm not an accountant so definitely go and
do due diligence and research ok ok so the next question Edward Northcutt is
asking how do you create a portal so fortunately you won't be able to create
the portal yourself SBA has to send you an email invite to create the portal so
you would have to wait until the sps entering the email for to do that okay
well how mentor is asking I'm confused so the money they deposit directly in
your account is the grant well we have to sign the loan separately I received
money directly in my account and I don't know if that's a grant or the loan so if
you haven't signed for any thing that's mostly likely the grant the
grant money just kind of shows up and there's really not a warning or an email
that says hey we're about to send you a grant now it just kind of shows up in
your bank account it's a direct deposit now when it comes to the loan they have
you created a portal and inside the portal you designate how much money
you're willing to apply for and after that they have you signed different
documents and paperwork so muhammad' to ask to answer your question well you
receive sounds like the grant okay next question i got e papa two one seven asks
i didn't check off the box i said we would like to be consider up to $10,000
advance because I don't misunderstood what they meant and unchecked it because
I only wanted a thousand dollars nothing more so now apparently I can't get the
thousand dollar grant uh what can I do to get the thousand dollar grant help so
the best bet right now is to call the SBA up or at least send them an email to
see what you can do about that to update your application now my last video I did
mention and this was just a rumor to go and reapply well we just found out that
you should not be reapplying because what happens is if you do end up
reapplying with another application they'll simply take the application that
you applied earlier and take that as the actual information so any new
application you file after the fact that you defiled already will be nullified
and the older application will take effect
Tiare li TV is asking how do i declined alone well pretty much don't sign the
paperwork and if they call you tell them hey I'm declining it alone that's
exactly what I did I looked at the document except no I'm signing this not
taking the EIDL and another reason why is I don't quite need it so I didn't
sign it and a few weeks go by the SBA representative did call me and saying
hey did you get the documents are you gonna sign and I simply told them nope I
am NOT I am declining alone and the SBA representative simply said okay alright
we'll make that note and wish you best look so that was pretty much it
so you don't all we have to do is don't sign it if they contact you just let
them know I'm declining the loan okay Irene Apgar is asking every time I try
to apply for the grant it takes me somewhere who wants me to pay for them
to assist what am I doing wrong so Irene it sounds like you could be an
authorities website that does not belong to the SBA so make sure
or you got the right website and the SBA website ends with dot-gov so if you are
in a dot-com or org you're probably in the wrong site and also another thing I
want to mention is that do be careful with the scams that are going around
seeing that their SBA and they're going to call you and they are asking for a
bank account information because they want to supposedly deposit the money
they want you to verify the information do not verify any account information do
not give them any bank account number guys there's a lot of scam going around
so please please please guys do you be careful with the phone calls that you'll
get saying that their sba and they're looking to verify the information please
be careful because you want to make sure that they're not a scam looking to
exploit your information so if you guys find this video helpful and if you
joined this video so far be sure to smash the like button help us out with
our YouTube algorithm so here's my EIDl Loan Process Updates prediction as well as my opinion as to
why some of you guys are not getting the e ID or loan application through as well
as some of your application just completely getting ignored I do believe
that when they reopen the EON do loan as well as the EIDL or grant application
process few weeks ago the sba did mention that they installed a new
automation system as far as making sure the process goes smoother now i think
and this is just my own thoughts my opinion that with this new installation
of automation system that the sba put on the EIDL loan application i think they
put in a filter to weed out some of the non legitimate application or they have
some sort of system where they go by L ratio or they're going off by how much
income that you're generating so with the automation system if you're not
making enough money on your business they put you in a low priority list but
if you're making a lot of money in your business they put you in a higher
priority because you have a lot more to lose so this is what I think what's
happening again don't take it as gospel I'm just thinking of this as what would
SBA do with the amount of applications that are coming in how will they weed
out some of the legit applications from the knowledge it application and another
thing that I think that they're doing with the automation system is that
they're checking your EIN number against the database with the IRS as well as
they're checking your LLC corporation and so for prior name with your state
secretary website to see that you are actually incorporated that you're
actually in good standing and I'm also wondering if they're checking your
business tax return see if you were actually filing taxes
for your business because at the end of the day the EIDL loan is for legitimate
businesses as well as businesses that are actually hurting from the
coronavirus I'm here thinking that the SBA is trying to figure out how to weed
out the non legitimate businesses businesses that are not properly set up
or people just applying because they want free money so tell me what you guys
think is the SBA actively weeding out people actively Naurang applications
what do you guys think tell me in the comments section down below that's just
my opinion as well as my thought I'm pretty sure SBA invested a lot of
dollars in website infrastructure to make sure that the right applications
are coming through and some of the non legit applications are being weeded out
and with all that being said if I missed Conclusion any of your questions going comment down
below ask me questions I continue to monitor the comment section down below
so definitely ask questions and I'll try to get them answered as best of my
ability and if you guys enjoyed this content be sure to subscribe to our
channel if you want more updates as well as learning how to invest in real estate
check out some of the other videos we have about EIDL loan programs as well as
real estate investing