EIDL Loan and Grant Application
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I’m going to walk through the EIDL loan and grant application process with you now. So on a slide, you can see where the H the URL is. So you want to go to COVID19relief.sba.gov just copy that URL into your web browser. You’re going to get to the disaster loan assistance application. So the first thing you’re going to want to do is to what type of application you are. So we’re gonna assume that for this purpose that you are a business with not more than 500 employees. If you are an individual with a sole proprietorship or independent contractor with or without employees, you’re going to select this one. And if you are a private nonprofit, you are going to click this one down here. We haven’t discussed these much, but you will know if you have more than 500.
If you’re in a cooperative, Aesop, tribal, you will look at these and choose the applicable one. So after doing that, you’re going to review and check all the following. Since we put this in our video that you have to not be any of these things. In order to qualify, you are able to just go through, click on these boxes because if you’ve gotten this far, you know that you already qualify, hit continue. And once you get to here, you’re going to see business information and you’re going to want to type in your business name and this is your legal name. So this is what is with you that you’ve registered with the secretary of state. It will also show up on the top of your tax returns on the first page. If you have a trade name let’s just say you are the best business inc doing business is sells.
Okay, the next thing you want to do is put in your EIN number. If you’re a sole proprietorship and you don’t have an EIN number, you can use your social security number. So for this purpose, we’ll make up a number and put it in there. And now you have to know your organization type. So you’re going to click here and it’s going to give you a pull-down menu. Since most businesses these days seem to be LLC, we’re just going to choose limited liability company. And this is not a nonprofit. If you are a nonprofit, you would click yes. If you are a franchise, you would click yes. By franchise we mean you’re a subway, a McDonalds et cetera, you would click yes. Otherwise, you’re going to click no. The growth revenues per our previous videos, you have determined this number. So go ahead and put this number in here, no decimals, just even numbers.
And then what is your cost of goods sold? So you sell socks. So socks, how much does it cost you to get your socks to sell? So we are going to say it costs you $50,000. That is what we computed. We don’t have a rental property, but if this was a rental property, you would put the amount of your lost rent. So if you get $1,200 from a renter, you would put in $1,200 at that is what you’ve lost for one month. Your cost of goods would be zero and your gross revenue would be your rent. If you’re a service industry, this is gross revenues is what you have for your total sales and you would have zero for cost of goods sold. Next, we’re going to go down to nonprofit of operation cost of operation. So if you are not a nonprofit, you can skip this. If you are a nonprofit, then this is where you would enter your cost of operation for the prior 12 months. So you would be doing February 1st, 2019 through January 31, 2020, so this number can also be found on your 990 as total cost of operations combined annual operating expenses prior to the disaster relief. This again is for nonprofits. So if you have operating expenses on your financials and you will go ahead and put this information right here for secular services provided. These are for all faith-based entities.
Since we’re talking about nonprofits, if you have a faith-based entity, this is where you’re going to list what type of services that you provide. If you are not a nonprofit, you can skip this compensation from other sources as a result of the disaster. So if you have received other loans right now or other compensation, you would go ahead and put that number in here. So if you got maybe an insurance check or some type of other type of disaster loan, this is where you put it. And then you’re going to say where you got this information from. So let’s just say that somebody was starting to go fund me page and you were able to get a thousand dollars off GoFundMe. You would put a thousand dollars and then your brief description would be same from GoFundMe page. Most don’t have that right now. So now we’re going to put in our primary address. This is the business address, we will use Michigan County, a Kent zip code, four nine five Oh six business phone. So we can use the business phone number.
You do not need to put an alternative business phone or a business fax in these fields. Next, you need to put in your email address for the business, date business established. Again, this was put together in your prior materials on your checklist and in the prior videos. So we are going to say that our business was in place as of January 1st, 2015 we have owned this business since that day. So it is under the same ownership since the day the business started. If you purchase the business from somebody else and purchase the entity from somebody else and the establishment was in 15 but you purchased it later, let’s say you purchased it in 18 then you would change this current ownership to the date that you purchased the entity. Business activity, so this is going to give you a pull-down menu and you can pull down the type of entity service that you are in. So since we sell socks, we are in the retail business and what do we sell? We sell clothing and apparel and we had, as of January 31st we had five employees. Now we’re going to hit next and we are going to list all the owners of the business. So Jane is the first owner
And Jane is the owner. Now you will see that it does not give you an option to put in president or vice president if you are in a corporation. So you can either put CEO or you can put other or you can put owner if you are the sole person who owns the entity. So since she is the sole person, we’re going to put owner, she’s 50% I’m sorry, we’re going to say she’s a partner with somebody else. So I will explain that here in a minute. And her email address, and she was born in Chicago as a US citizen. You got to put in your residential, where did we say that? No, I don’t know the zip code for Chicago. So we’ll just put one in. Okay, so now if you have more than one owner, you’re going to click on add additional owner and this is where the second one is going to come up. And as soon as you click on agent owner and open up the drop-down menu, her husband Joe is also an owner. And he’s 50% as well. Date of birth and Joe was born in New York. New York is a US citizen.
So now you should have your all your owners listed. So the primary owner, their ownership percentages, their title, social security number, their date of birth, where they were born, if they’re a US citizen, and where they live. And if you have more than one owner, you go ahead and click additional owners. Now very important to note that is this business owned by a business entity? If you do not have a business entity that owns as part ownership, you click no, but if you do, you go ahead and click yes. And then you’re going to list that business entity information and percentage of ownership just as if you would if they were an individual. So nobody else owns this part of the entity. So we are going to click on no and we’re going to hit next. Next, it’s going to ask you if you’ve been convicted of any type of crime?
No. Are you currently suspended or disbarred? No. And are you presently subjected to indictment? No. So obviously if these were true, you would want to say yes and you wouldn’t qualify. We are assuming everybody is in good standing. So you will click no. If anyone has assisted you in completing the application, whether you pay a fee or not, you must put their information here. Do not list our information. We are not assisting you in doing this. We are simply providing an instructional video do by putting somebody’s name in here. You are going to slow down your application process. So skip over that section. Now if you did go out and pay a third party, then you would obviously put their information in here. This is very important. I would like to be considered for an advance of up to $10,000 this is the grant money that we’ve told you about in the prior videos. So you want to make sure without a doubt that you click this box. The next thing you’re going to do is put in your name, your bank name, your account number, and then your routing number.
Usually which is a nine-digit number and once you get done, you’re going to scroll down to the bottom. You are going to clip that you certify under penalties of perjury that you have a that this is correct information. You’re going to click next and it is going to come up with a summary. You can go through all of this and double-check all of your information.
Once you have determined that it is correct, you scroll all the way to the bottom, you’re going to click that you are not a robot and you’re going to hit submit. Obviously we do not want to hit submit for these demonstration purposes, but once you click that you are not a robot. This submit button will turn dark blue and then you can hit submit. If it doesn’t, it means that the system is just lagging so you can come back later. You can just leave your application up on the screen and maybe try back in a little bit. If you need to change something, you click these edit buttons. So let’s just say this shouldn’t be a four and I’m going to go scroll back down and hit next and it’s going to go through the other screen. So just continue hitting next until you get back to the review screen.
Once you clicked the submit at the bottom, you’ll be given a confirmation number screen. Make sure that you print or write down that confirmation number. That is the only information that you will get that shows that you have successfully submitted this application. If you do not get that screen, then something went wrong and we suggest that you reapply. Once you get that information, you will not get an email from the SBA acknowledging your application. You will not hear anything until they start processing the application for the EIDL loan. Once they start processing the information in approximately 21 days, you will hear from them.
Donna Bordeaux, CPA with PYOPAccounting.com.
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna Bordeaux and PYOP Accounting.com. Donna and her husband, Chad, who is also a CPA, have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help PYOP studios earn 4 times more profit than the average PYOP and are passionate about helping industries that help families build great memories.