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Business Relief Financing

Business Relief Financing Options: 2021 (2nd Package)

eidl last chance

Running a business during the COVID-19 outbreak comes with unusual challenges. To assist small businesses during this time, the federal government has passed the CARES Act, which include the Payroll Protection Program (PPP) and the SBA Economic Injury Disaster Loan (EIDL).

What business funding relief options exist?

Without a doubt, many owners must know that the PPP will only cover two months of expenses to cover payroll.  Furthermore the EIDL can take two to four months to process. I need funds beyond just covering payroll expenses. Are there other financing options available to me? Yes. Keep reading to learn more about other private initiatives. Also, you may be eligible for a loan or grant from your local or state government. You also may be eligible for a Term Loan or Business Line of Credit from Lendinero.  To learn more about our solutions write to us at: contact@lendinero.com

What is an SBA Economic Injury Disaster Loan and How Do I Apply?

SBA disaster loans lendinero

Information about SBA Economic Injury Disaster Loan program

The United States Small Business Administration (SBA), is a government agency that provides financial assistance to small businesses during disasters. This information focuses on the SBA Economic Injury Disaster Loan program in particular. However, the SBA does offer a variety of loan types.

If you live in an area that experiences hurricanes, tornadoes or natural disasters, you’re likely familiar with the SBA Economic Injury Disaster Loan program. However, the program was recently broaden to include small businesses impacted by COVID-19.

What businesses are eligible for an SBA disaster loan?

The EIDL loans are available to businesses with less than 500 employees. Also, businesses in states that have declared for disaster.  Most states have declared themselves as disaster areas because of Covid-19. Last, your business must have been operating before February 1, 2020. 

How do SBA disaster loans work?

Amount and Terms

Loans of up to $150,000 are available to businesses, with repayment terms of up to 30 years. The amount your business is eligible for depends upon a variety of factors, including loss in revenue, payroll costs, and rent payments.  More important, the financial documentation that you present to show previous revenues, expenses and losses.  At this time the maximum loan amount is $150,000.  Any changes in loan amount will be updated accordingly to legislative changes.

What are the Interest Rates, Fees, and Repayment?

Interest rates are 3.75% for for-profit entities. There is no fee to apply for loans under $25,000, and a $100 processing fee for loans above that. You start repaying your loan 12 months after you receive your funds.

How can you use the proceeds of the loan?

You may use the loan proceeds for payroll costs, salaries, sick leave, business rent, business mortgage payments, material costs, and existing debt.

What documents will I need?

Here is some of the information and paperwork you will need to have on hand to apply:

  • Basic business information, such as your legal business name
  • Active status of the business with the Secretary of State, SOS
  • Employer Identification Number (EIN), and date established
  • Gross revenue numbers for January 31, 2019 to January 31, 2020
  • Cost of goods sold for January 31, 2019 to January 31, 2020
  • Expenses from January 31s, 209 to January 31, 2020
  • Preferably, a profit to loss statement for 2019 and January of 2020
  • Any other financial documentation that you may have
  • Business owners’ information
  • Number of employees employed as of January 31, 2020
  • If you demonstrate cost of sales higher than revenues; prior to Jan of 2020, you may not get approved 

How soon can I expect to get the funds?

While the SBA has streamlined their existing loan application process to get funds there are still uncertainties.  The SBA expects to have a decision on your application within hours.  However, the process may take from 1 month to 4 months.

RECONSIDERATION ON EIDL. Were you denied for an EIDL loan?

Were you denied for an EIDL? Without a doubt, the loan process is complex.  Furthermore, the SBA is backed up in process loan applications for EIDL.  Evidently, you are not the only business who has been denied.  Thousands of businesses just like yours, were denied.

What is an EIDL reconsideration?
If you were denied an EIDL loan by the SBA, you should receive a notice in writing with a reason for the denial. You have the right to present information to address the reason for the decline and request reconsideration. When you submit a request for reconsideration, you need to provide all the new information that will overcome the SBA’s denial. According to the SBA’s regulations, you must also provide your current business financial statements.  Contact our office today: 888-505-5835 

How can I get the $10,000 advancement? NO LONGER AVAILABLE 

The EIDL advance has been discontinued.

More important, you must apply before December 31, 2021. Furthermore, this date can change at any time.

Documents Needed for Economic Injury Disaster Loans and Loan Advance

It should be noted, that applying for the EIDL Loan and or advancement is just like applying for any business loan you have previously applied for.  Even though the government has taken steps to assist businesses, extensive paperwork and financial documentation is required.  With this in mind, specialists can help you step by step to review forms,  conduct financial analysis and prepare the package. Thereafter, all information is submitted to the SBA.   Last, please download each document in the following order with your loan specialist/agent. 

Just click each link and donwload it.   


Phase I:

  1. SBA Form 159 D Fee Disclosure Agreement 

  2. Checklist and Process 

  3. Increase requests

Phase II 

  1. Economic Injury Loan Supporting Information Form 

  2. Request for Transcript 4506 T Form

Phase III

  1. SBA Form 413 D – Personal Financial Statement 

  2. SBA Form 1368 Additional-Filing-Requirements

  3. SBA Form 2202 Schedule-of-Liabilities

Update Notices & Disclosure to Applicants

  1. Update Notices to Applicants and Disclosure I

These forms are for the EIDL Loan and or Advancement only.  


To sum up, please visit the following link and become familiar with fees allowed by the SBA.  Furthermore, Lendinero is acting as an agent or broker in compliance with the fees allowed by the SBA. Please visit:

SBA Programs and Fraud Alerts

SBA Fee disclosures

The compensation an agent charges you must bear a necessary and reasonable to the services actually performed. In addition, they must not include any expenses which are deemed by SBA to be unreasonable.

13 CRF 103 or SOP 50-30 of the SBA

Compensation must not include charges prohibited in 13 CFR 103 or SOP 50-30, Appendix 14.  What happens when the SBA deems that the amount of compensation is unreasonable? These actions may be taken:

  • The Agent must reduce the compensation to an amount SBA deems reasonable
  • Refund you any sum in excess of the amount SBA deems reasonable
  • Refrain from charging or collecting directly or indirectly from you an amount in excess of the amount SBA deems reasonable.

Violation by an Agent of any of these rules may result in SBA’s suspension or revocation of the Agent’s privilege of conducting business with SBA.

Agents and Non-Agents

The following are not considered agents according to the SBA. First, an applicant’s accountant for the preparation of financial statements or tax returns required by the Applicant in the normal course of business.  Furthermore, that said accounting services are not related to the loan application.  Whereas, any professional retained by you in the normal course of business are not considered agents.  Given that those services are not related to the application or loan closing. Direct costs associated with document preparation in connection with the loan closing do not need to be reported in the SBA Fee Disclosure Agreement.  To sum up, an agent who charges more than the fees below needs to submit an itemization of services and justification of work performed to the SBA.

  • $500 for a disaster home loan
  • $2500 for a disaster business loan
  • SBA limits the fees a broker can charge a borrower to 3% for loans $50,000 or less and 2% for loans $50,000 to $1,000,000 with an additional ¼% on amounts over $1,000,000. Any attempt to charge more than these fees is inappropriate. Please visit the SBA website: https://www.sba.gov/document/report–sba-programs-scams-fraud-alerts

Summary and Disclosure

In fact, you are not obligated to utilize our services.  Loan specialists and agents will assist you with loan packaging, prepare financial documents, document reviews, analysis, consultation and any services allowed by the SBA.   Altogether, PPP and EIDL approvals are subject to credit reviews, underwriting and due diligence.

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