The standard calculation is “Gross Receipts” of 2019 minus cost of goods sold (COGS) times 2. If your business has ‘cost of goods sold’ (COGS), that comes off the gross receipts first.
Likewise, people ask, can self employed get EIDL loan?
You are eligible to apply for an EIDL loan as an independent contractor or self-employed person. NOTE: As of April 15, 2020, the EIDL program was running out funds, so loans were only being approved up to $15,000, and emergency grants were limited to $1,000 per employee up to $10,000.
Similarly one may ask, how does SBA determine Eidl amount?
SBA Uses Revenue and COGS to Decide Potential EIDL Loan Amount. The SBA calculates your total possible EIDL loan amount based on your 2019 revenue and your cost of goods sold.
What can I use EIDL loan for self employed?
An EIDL can be used to pay for payroll, fixed debts, accounts payable, and other expenses that you are unable to pay directly due to the impact of COVID-19. Your EIDL, minus the forgiven portion, will be payable over up to 30 years at 3.75% interest.
EIDL funds can be used for working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, fixed debt payments.
The loan amount will be based on your actual economic injury and your company’s financial needs, regardless of whether the business suffered any property damage. *A business may qualify for, both, an EIDL and a physical disaster loan. The maximum combined loan amount is $2 million.