At Vitae Tax, we are commited to providing you with the best, up-to-date information available to help you and your business. This page is intended to provide you with the information we have available using our experience and network of partners in the HR, Banking & Loan industries.
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EDIL & PPP Loan
EIDL and PPP Loan Information
There have been many developments as to what is available for small business owners and as of March 31st, 2020, here is the most recent information available to us regarding the federally mandated SBA Loan Programs.
Basically, there are two major SBA Loan Programs to consider:
The SBA Disaster Loan (also known as the Economic Injury Disaster Loan, or EIDL).
Note that this program IS AVAILABLE NOW.
To qualify for this program:
- Must be directly impacted by the disaster COVID-19
- Must apply directly through the SBA website https://covid19relief.sba.gov/#/
Highlights
- Application takes 10-15 minutes to complete.
- Application asks for basic personal and business financial information (Gross Receipts, and Cost of Goods Sold), for the year 2019
- Program provides for immediate $10,000 advance (within days) using your bank account information. Availability of the $10,000 is on first come first served basis
The SBA Cares Act (also known as Paycheck Protection Program, PPP, Corona Virus Loan, SBA Relief Loan)
Note that this program is NOT FULLY ACCESSIBLE NOW.
What we know on the SBA Cares Act
- Program will be available through some major banks and credit unions
- Must communicate directly with your bank or credit union
- Up to $10 million
- If funds are used to cover certain fixed costs (e.g. payroll, taxes, mortgage interest, and lease payments), a portion of the loan may be forgiven and may not have to be repaid.
- $10,000 will be advanced days after the application is submitted
- $10,000 may be forgiven if used for the above-mentioned uses, even if loan gets denied.
- There may be deferral payments from 6 months to 12 months
Please consider these two options and communicate with your Account Manager at Vitae Tax if you have any questions. You can also reach us at 626-931-0829.
Helpful Tips
Where do I find my Business legal name?
Tax Return header, line name
Where can I find my Trade Name? (could be DBA/FBN)
This can be found on the DBA form in most cases. Same as legal name 1040 Schedule C, Line C.
What about my EIN or SSN (Sole Prop Only)?
This information can be found on the following:
– 1120 S Tax Return, Line D
– 1120 Tax Retrn, Line B
– 1065 Tax Return, Line B
– 1040 Schedule C, Line D
Organization Type?
– 1120 S = S Corporation
– 1120 = Corporation
– 1065 = Could be LLC or Partnership
– 1040 Schedule C = Sole Proprietor
Gross Revenues for 12 months prior to 1/31/2020.
– 1120 S Tax Return, Line 1a
– 1120 Tax Return, Line 1a
– 1065 Tax Return, Line 1a
– 1040 Schedule C, Line 1
Cost of Goods Sold for 12 months prior to 1/31/2020:
– 1120 S Tax Return, Line 2
– 1120 Tax Return, Line 2
– 1065 Tax Return, Line 2
– 1040 Schedule C, Line 4
Can I use a P.O. Box as my primary business address?
We highly recommend that you do not use PO Box for this application.
Do I need an email address?
Yes you do. Please make sure you’re using an email address that is active and that you check regularly.
Where can I find the date my business was established?
This can be found on the following forms:
– 1120 S Tax Return, Line E
– 1120 Tax Return, Line C
– 1065 Tax Return, Line E
– Sole proprietor : Must provide
What about current ownership for my business?
You would go off of the annual minutes if no changes have been made since establishing use date business established.
Business Activity and Detailed Business Activity:
You must make a selection from the options provided.
Number of Employees (as of 1/31/2020)?
This only applies for those employees who are on payroll.
Is your business owned by an Entity?
If your business is owned by individuals, the answer is no. If the company is owned by another company, the answer would be yes. (see below)
Yes – Enter the entity information until percentage of ownership is 100%
No – Enter ownership information of individuals until percentage is 100%
What happens if I do not get the loan?
If you receive a loan advance, it will not have to be repaid.
What is the interest rate for the loan?
Interest rate for this type of loan varies but does not exceed 4% and the term of the loan will not exceed 30 years.
We highly recommend that you speak to an Authorized SBA Agent or your banker when filling out the the EIDL loan.
