Plenty of small business owners over the United States are wondering what their recent ACH deposit from SBAD TREAS 310 is from?
The answer
It’s your EIDL advance or “grant” as some are calling it.
Note: The following terms are commonly used for both the grant and loan.
EIDL = Economic Injury Disaster Loan
EIDG = Economic Injury Disaster Grant
Do We Need To Pay IT Back?
No, the SBAD TREAS 310 Misc pay is an advance or “grant” from the small business administration and is part of the economic injury disaster loan.
The problem is that many questions regarding the SBA don’t stop at just the deposit from SBAD TREAS 310 MISC. We compiled a list of questions for you and provided the answers using this table below.
Common Questions About SBA Loan Options In 2020. |
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What’s the difference between the EIDL and PPP? |
Will the EIDL affect my unemployment? |
Where Can I Apply For The EIDL? |
Can I use both EIDL and the PPP loan? |
When will my EIDL loan go through? |
What can I use my EIDL grant for? |
How much will my EIDL loan be? |
Do I need to pay back my EIDL grant? |
What if I don’t want the loan portion? |
How Much Will MY EIDL Be?
Use this calculator to determine your approximate EIDL loan value.
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The economic injury disaster loan is a loan from the SBA to offset financial hardships due to the recent pandemic. If your business has recently applied for the SBA’s EIDL, then this recent ACH deposit from the name of “SBAD TREAS 310” is your advance from the SBA. This advance does NOT have to be repaid.
However, the loan that follows will have to be repaid.
What Your ACH from SBAD TREAS 310 May Look Like
As you can see above, a recent deposit for the amount of $1,000 confused our business just as much as all of you.
Do I Need To Pay Back My EIDL Advance?
The answer is no.
The deposit you received that reads “SBAD TREAS 310” is only an advance. Some people are calling this the EIDL “Grant” as it does NOT have to be paid back. If you have received this deposit, then the rest of the loan will follow in the next coming weeks.
An EIDL loan however you do need to pay back with interest. Interest rates are fixed at 3.75% or 2.75% for nonprofits. These loans have a payment time frame of 30 years, available in all 50 states of the United States, and have no pre-payment penalties.
Most business owners confuse the difference between the EIDL loan and it’s advance, The advance is a one time deposit from the SBA that is a rapid banking deposit to help offset financial hardships brought upon by the recent pandemic.
The advance can be anywhere from $1,000 to $10,000. Most small business owners have seen a recent ACH deposit from the SBAD TREAS 310 payment ID for a total of $1,000.
Difference between EIDL “Advance” and “Loan”
Many people are confused and wondering if this deposit they got is their actual loan. It’s not. It’s only the advance of the loan Here’s the difference.
The EIDL Advance
The EIDL advance or EIDL grant is actually free money from the government to help offset the financial hardships due to the recent pandemic. The advance is deposited first, then the loan is to come afterward.
The EIDL Loan
The EIDL loan is the actual interest paid portion of the funds you will be receiving. As stated previously this portion of the loan DOES have to be paid back with interest. Most people are wondering if they need the loan and if they don’t, can they just not apply for it?
Unfortunately, you need to apply for the loan in order to get the advance. However, you can pay off the loan immediately once it is deposited with no pre-payment penalty.
Where Can I Apply For the EIDL?
The SBA website periodically opens applications back up to apply for the EIDL. You can visit the link here and see if applications are currently being accepted.
Difference Between EIDL and PPP?
Most people are asking us what’s the difference between the EIDL and PPP loan? Well, there is actually a big difference and it’s important to know the functions of both.
Simply put, the economic injury disaster loan is for business expenses whereas the PPP loan is for payroll expenses.
Looking to apply for the PPP loan? Click here to use our custom gateway.
Economic Injury Disaster Loan
The economic injury disaster loan is just what it sounds like. A loan provided to business owners that is meant to help during some type of financial hardship caused by an unforeseen set of events.
This loan, while backed by the SBA ( small business administration ) is also funded by the federal government for the economic hardship of 2020 due to the recent pandemic.
This loan notoriously is attached to an EIDL advance or EIDL grant as some are calling it. This grant has been made available to business owners around the United States via rapid checking account deposits and does not have to be paid back. However, the actual loan portion does, at 3.75% interest.
Payment Protection Program
The payment protection program is another economic aid loan, funded by the United States federal government.
However, this loan has a purpose which solely consists of helping business owners keep their employees by offering funds to make payroll and keep their operations running.
The payment protection program offers approximately 3 months worth of payroll in the form of a loan. This loan is given out by a list of 250 approved lenders and has a great clause stating that if you use at least 75% of the loan for payroll purposes then it will be 100% forgivable in the future.
That means if you get a loan of $10,000 and use at least $7,500 of that loan for payroll, you will have the ability to have the loan forgiven and not have to pay it back.
Can I use The EIDL and PPP Together?
The answer is yes.
However, we highly recommend consulting with a tax professional to see the implications of using both loans together in regards to next years tax season, deductions, and claims.
Typically, the EIDL is used primarily for business expenses which do include payroll. However, the PPP loan is used for payroll purposes only and should stay as such.
If you have received both loans we might suggest using the EIDL for things such as products, rent, bills, and materials and the PPP loan for payroll towards employees.
Will the EIDL or PPP loan affect my unemployment?
If you have received the EIDL grant or advance and are wondering if it will affect your unemployment status then you are definitely not alone.
Unfortunately, because every state is different and these programs are being changed and distributed at such a high rate, we highly encourage you to contact your state’s department of labor to get confirmed answers.
When Will My EIDL Be Deposited?
Although the answer for this is unsure, we have seen loans be processed about 14 to 21 days after receiving the EIDL grant on average.
Word has been going around that some have received their loans, some have not, and some have already gotten their advances weeks ago along with their full loan amounts.
In the midst of this financial hardship, it can be tough to wait for a loan that has no sign of coming in. However, if your advance has been deposited, this means the SBA has received your loan application and the funds will hopefully be delivered shortly.
Can I Deny the Loan Portion Of The EIDL?
Yes.
when the SBA emails you a confirmation of the loan approval and issues portal access via their website you can do the following.
- Do not login to the portal
- Wait 10 days
- The SBA will then dissolve the loan process and abandon your application
At this point, you can keep the advance payment you received and have no issue with loan repayment.
How To Apply For The EIDL Grant
The time needed: 1 day.
Applying for the EIDL grant.
- Fill out the EIDL loan application
This will require some basic business operating information as well as ownership information.
- Await the grant deposit labeled as “SBAD TREAS 310”
This is the “grant” that people are talking about and does not have to be paid back
- Await the actual EIDL loan
This is the portion of the loan that comes after the grant and has interest attached to it. Pay it off immediately with no pre-payment penalty if you wish and enjoy your grant!
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