I represent tax payers in the greater St. Louis area, the State of Missouri and nationwide who have IRS and state tax issues. There still is a lot of confusion regarding all of the loan programs so I thought we would just focus on the loan opportunites and limitations for the EIDl program.
The basic answer for how much money a business might get is that the maximum loan amount is 2.5 times the averge monthly payroll for the 12 months preceding the date the loam is made. As an alternative a business may use average monthly payroll for 2019.
The amount of each loan is limited to the economic injury to be determined by the SBA after subtracting business interuption insurance if you have it and other capital recoveries up to the lending limit. Other considerations that are available from either the business,owners or other affilates.
Questions regarding collateral if your business qualifies for a larger loan are as follows:
Real estate is acceptable as collateral. The SBA has stated it won't decline a loan for lack of collateral, but would require a borrower to pledge collateral that might be available.The underwritng from what I have seen is been fairly liberal.
If you have a current SBA loan it will not preclude an applicant from being eligible for the Disaster Relief Loan, but need to be in good standing with the SBA.
If you have not complied with the terms of previous loans your likely to be out of luck.
These are the most unusual times and what defines normal moving forward remains an unknown. How long the EIDL loans will be available is to be determined and the Payroll Protection Program at this time remains open till th August 8th.
If you or someone you know has questions about these funding programs feel free to contact me at firstname.lastname@example.org or call me @636-397-2759 or text me @ 636-866-4554. It would be my please to assist in any way I can.
Arch Tax Resolution
620 S. Benton Ave
St. Charles, MO 63301