EIDL Grant Questions Answered + Hidden Process

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