COVID-19 has affected every business and individual in different ways. The financial effects have been the dominant whether small businesses, individuals, or entrepreneurs. Small businesses are the most vulnerable to such economic shocks, followed by the pandemic in 2020.
Therefore, the Small Business Administration(SBA) had different initiatives in place to accommodate small business owners.
Economic Injury Disaster Loan(EIDL) Program was one of those initiatives to compensate the small businesses and individuals to cover their losses and have enough working capital to keep their businesses going.
Under the EIDL plan, the eligible applicants were issued advances(grants) and direct loans deposited in personal or business accounts.
However, there are many questions that business owners and individuals ask about the deposit under EIDL. SBAD TREAS 310 MISCEL pay was an item that appeared in personal and business accounts of the applicants that further raised their concerns.
In this article, we will answer all the questions asked about SBAD TREAS 310 and how the Economic Injury Disaster Loan will work for them.
So let’s get into it.
What is SBAD TREAS 310 MISCEL Pay?
Unlike what most people perceive, SBAD is not synonymous of is bad. Instead, it stands for Small Business Administration. On the other hand, TREAS stands for the treasury.
SBAD TREAS 310 Miscel Pay is an item that appears in the bank statement of individuals or businesses when their application for EIDL is approved, and they get the first payment of the grant.
Therefore, if you have been confused about what is SBAD TREAS 310 appears in your bank statement, it represents the amount credited to your account by Small Business Administration to offset the financial loss.
SBAD TREAS 310 essentially represents the EIDL Advance, a grant by SBA for offsetting the financial hardship that recent pandemic events caused you. It also signifies that SBA will soon deposit the remaining loan balance into your account.
What is EIDL?
We already mentioned that EIDL stands for Economic Injury Disaster Loan.
Now, what is it actually?
SBA provides a loan to small business owners to help them through the hard financial times. The loan is granted to overcome the series of unforeseen events resulting from any financial hardship that is broad in its spread at a national level.
The recent event when SBA granted the EIDL to individuals and small businesses was after the worst pandemic of the century hit the USA and other parts of the world in 2020. The amount was funded by Federal Government and backed by Small Business Administration.
The amount of loan is issued at a low fixed rate of interest, around 2.75% to 3.75%. However, before the loan disbursement, an EIDL advance is issued to individuals not subject to any interest rate or payback.
Difference Between EIDL And EIDG
However, many people misperceive the meaning of EIDL and EIDG. Although, EIDL is the broader term used for the loans issued by the Federal government of the USA and backed by SBA. So let’s make it clear before we move any further.
EID(L) stands for Economic Injury Disaster Loan
EID(G) stands for Economic Injury Disaster Grant
The first term is what the Federal Government issues to eligible applicants at a fixed interest rate of around 2.75% to 3.75%.
The grant is what you receive under the head of SBA TREAS 310 in your bank account. The amount of the grant is between $1000 to $10,000. However, in most cases, individuals are receiving a grant of around $1000 in their bank accounts.
How To Apply For EIDL?
Many of you will be wondering how to apply for EIDL and get entitled to advance and loan. Now that you know what EIDL is, what EIDG is, and how does it work for you. So here is what you need to do to apply for EIDL.
You will require to apply for EIDL from the official website of the Small Business Administration. Follow these simple steps to get started with your application:
- EIDL Loan Application Form Filling
It’s the only practical work that an individual or business owner must do to get approved for the loan and receive the amount.
When you visit the official website of SBA, you will require to fill out the EIDL loan application and enter the basic information about the business, its operation, ownership, etc., to proceed.
- Wait For EIDL Grant(SBAD TREAS 310)
Once you have applied, you have to do nothing but wait for the approval. The approval is not something the department will intimate you.
Instead, receiving an advance amount between $1,000 to $10,000 in your personal or business account means you’re approved for the loan. The grant or advance has not to be paid back, and it’s deposited by SBA to offset your financial losses.
- Wait For Loan Amount
The actual loan amount will follow your account’s SBAD TREAS 310 Miscel pay. The amount received after the grant is subject to a fixed interest rate as applicable.
You will have to pay the interest immediately with no pre-payment penalty. Besides, you can also pay back the loan if you have managed to get out of the financial hardships.
Who Is Eligible For EIDL?
It’s a legitimate question: who is eligible for EIDL, or what eligibility criteria are!
According to the statements and notifications issued by Small Business Administration regarding EIDL eligibility, the following persons and businesses are eligible:
- Small business owners
- Agricultural businesses
- Nonprofit organizations
All of the businesses and organizations mentioned are eligible if they’re working in any state of the U.S., Washington D.C., and territories.
Where Can The Proceeds Be Used?
The Small Business Administration has also appropriated where business owners can use the proceeds from EIDL. Here are some expenses the business owners can finance using EIDL proceeds:
- Working capital of the business for normal operational expenses. These expenses include:
- Ordinary expenses of the business
- Payroll expenses
- Business debt incurred in the past, present, or future.
The maximum amount of loan disbursed by SBA is $2 million. It was less than $0.5 million before October 2021. The loan terms are extended to 30 years, and the interest rates are applicable as follows:
- Businesses: 3.75% fixed
- Private nonprofit organizations: 2.75% fixed
What are the fees For EIDL?
The fee structure for EIDL is different according to the amount of loan you’ve applied for. According to details published by SBA, the fees for loan filing are as follows:
- If your loan is less than $25,000, there is no filing fee when you apply directly through SBA
- If the loan amount is greater than $25000 but less than $500,000, there is a one-time fee of $100 for filing a lien on the borrower’s business assets+ costs to file a lien on real estate(if applicable)
- If the loan amount is greater than $500,000, there is a one-time fee of $100 for filing a lien on the borrower’s business assets, plus real estate is kept as collateral. Therefore, the borrower has to bear expenses for recording the real estate lien.
Do I need collateral to get EIDL?
There is no need to keep collateral in EIDL if the loan application is for less than $25,000. However, if the amount exceeds $25,000, collateral must be pledged.
Do I have to pay back the SBAD TREAS 310 MISCEL
SBAD TREAS 310 is the grant or EIDL advance amount for offsetting the financial losses. The grant follows the actual loan amount.
Therefore, the eligible applicants receiving the grant are not required to pay back the amount of the grant. However, the loan amount must be paid back per set terms.
Where can I apply for EIDL?
You can apply for EIDL directly through SBA by visiting their official website. The loan applications are opened on a periodic basis.
Therefore, you must stay vigilant and check when applications are opened. Save the link here to check if applications are open at present or not.
Can I deny a loan portion of EIDL?
Yes, you can deny a loan portion of EIDL, and it’s simple. You must not log in to the portal, wait for ten days, and SBA will dissolve the loan process by abandoning your loan application. It’s as simple as it seems. You can still keep the advance payment that you received as SBAD TREAS 310 as it’s not payable.
We hope this blog post has answered the questions in your head well. We have discussed everything that is possibly related to EIDL, SBAD TREAS 310, and its working.
If you still have any questions, you can post them below, and we will try to cover the questions in a separate post or answer you instantly.