Suddenly have money in your bank account with the notation “ACH Credit SBAD TREAS 310 – MISC PAY NTE*PMT*EIDG” or “ACH Credit SBAD TREAS 310 – MISC PAY NTE*PMT*EIDL” or “EIDADV”? Here’s what it is and what it means.
First, if you received this, then congratulations, you are a small business owner (or represented yourself as one). And that sudden ACH deposit in your account is the funds, or an advance on the funds, that you applied for through the Small Business Administration Economic Injury Disaster Loan Emergency Advance. OR, it may be a grant from the SBA fairy that you don’t even have to pay back!
Here’s how to break it down: the SBAD stands for “Small Business Administration Deposit”. EIDL stands for Economic Injury Disaster Loan, and EIDG stands for Economic Injury Disaster Grant. Some people are seeing EIDADV, which stands for Economic Injury Disaster Advance.
The U.S. Chamber of Commerce explains that for the EIDL (L for Loan):
- The maximum EIDL is a $2 million working capital loan at a rate of 3.75% for businesses and 2.75% for non-profits with up to a 30-year term
- Payments on Coronavirus EIDL loans are deferred for one year
- Up to $200,000 can be approved without a personal guarantee
- Approval can be based on a credit score and no first-year tax returns are required
- Borrowers do not have to prove they could not get credit elsewhere
- No collateral is required for loans of $25,000 or less. For loans of more than $25,000, general security interest in business assets will be used for collateral instead of real estate
- The borrowers must allow the SBA to review its tax records
This is most likely triggered by an application through a lender for one of the EID programs, such as the SBA Paycheck Protection Program.
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Whereas for the EIDG (G for Grant):
- Eligible applicants for an EIDL loan can receive an emergency grant of up to $10,000 within three days of application (through Dec. 31)
- There is no obligation to repay the emergency grant, and it is not necessary to have an approved EIDL loan to receive the grant. However, if you are able to secure a PPP loan, the $10,000 grant will be subtracted from the forgiveness amount
- The Paycheck Protection Program (PPP) created by the CARES Act prohibits borrowers from taking out two loans for the same purpose. For more information on PPP loans, visit uschamber.com/sbloans
And here is how the Small Business Administration, under whose auspices these loans and grants are being administered, explains the program on their site:
In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories were able to apply for an Economic Injury Disaster Loan advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid. SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on a limited basis only to provide relief to U.S. agricultural businesses.
Did you get two key things there? Right now (as of May 5th), under their newly revised eligibility criteria, applications are only being accepted from agricultural businesses (but see below), and the funds coming from this specific program are a grant, not a loan, meaning that they don’t have to be paid back.
The SBA goes on to explain the newly revised eligibility criteria: “The new eligibility is made possible as a result of the latest round of funds appropriated by Congress in response to the COVID-19 pandemic. Agricultural businesses includes those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)). SBA is encouraging all eligible agricultural businesses with 500 or fewer employees wishing to apply to begin preparing their business financial information needed for their application.”
The reason for this, says the SBA, is “due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying.”
Now, if you aren’t reading this because you received a surprised ACH deposit to your bank account and were wondering what it was, and you aren’t an agricultural small business, then you may at this point be stressing that you have missed applying for relief funds from the SBA. You haven’t. This is different from the SBA Paycheck Protection Program (PPP) (designed to help small businesses continue to pay employees during the COVID-19 crisis, and also from the SBA Express Bridge Loans program (which allows small businesses who have an existing relationship with an SBA Express Lender to quickly get a loan to tide them over until, for example, their PPP funds come through).
UPDATE: A lot of people have a lot of questions swirling around these grants and loans. Unfortunately we don’t have the answers to these questions – we don’t speak for the IRS, or any agency, however, what we can say is that if you applied for the PPP loan, then you applied through a lender (either your bank or an online entity), and they are who you need to ask these questions. They may not know either, of course, because it seems nobody knows, but they are the most likely source.
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I have the same question as the two above?
I applied for a loan for up to as much as $10k at the SBA site. I hadn’t heard anything back from them but just noticed a $1k deposit with this designation (Sbad Treas 310). Does this mean they agreed to give me a $1k loan? Or is this a quick little advance? Will there be more to come, or is this it?
Thank you for your help please reply,
Michael, we don’t speak for the IRS, or any agency, and unfortunately we don’t know the answers to these questions. However that said, if you applied for the PPP *loan*, then you applied through a lender (either your bank or an online entity), and they are who you need to ask these questions. They may not know either, of course, because it seems nobody knows, but they are the most likely source.
My grant got returned to the sender
how long before it returned to sender
HOW do I retrieve my EIDL Grant Application?
Do we need to make any documents for the SBAD TREAS 310 misc pay (EI DG) since it is free and we don’t know if we need to make one.
Guys, we don’t speak for the IRS, or any agency, and unfortunately we don’t know the answers to these questions. However that said, if you applied for the PPP *loan*, then you applied through a lender (either your bank or an online entity), and they are who you need to ask these questions. They may not know either, of course, because it seems nobody knows, but they are the most likely source.
Everything he wrote is the same questions I have. I appreciate the payment. Please let me know the stipulations. I am also confused. Thank you for your cooperation in this matter.
Thanks for the article about the 126-SBAD TREAS 310 MISC PAY
NTE*PMT*EIDG payment I received. I have a sole proprietorship very new business that this Covid-19 thing is not helping at all, so I applied for one of those loans for up to as much as $10k the SBA site said would not have to be paid back. I hadn’t heard anything back from them but just noticed a $1k deposit with the above designation. Does this mean they agreed to give me a $1k loan? Or is this a quick little advance on whatever it turns out they decide I can get (not to exceed a total of $10k)? Will more be coming, or is this it? I haven’t received the IRS EIP yet (April or yet this early in May). That’s still coming, too, right? I’m wondering. Many people got $ in April and are also expecting it in May. How does this work? With each new passage in Washington does everyone get another payment or will we all just get ONE whenever they can get to it (speaking of the IRS tips here). Sorry for so many questions, but it’s a bit confusing for some of us. ;-)
Same exact questions as above. I would appreciate a response. Thank you so much!