loan-l Economic Injury Disaster Loans: Who Is Eligible?

loan-l Economic Injury Disaster Loans: Who Is Eligible?
If you’re the owner of a small business, small agricultural cooperative or private nonprofit organization of any size and have suffered considerable economic injury as a result of a physical or agricultural production disaster recognized by the Secretary of Agriculture, then you may be eligible for one of the SBA loans through the Economic Injury Disaster Loan (EIDL) Program. Considerable economic injury means that you’re unable to meet your business obligations as they arise and maintain your ordinary and necessary operating expenses.

The mission of the U. S. Small Business Administration (SBA) provides that affordable, timely and accessible financial assistance is available to homeowners, renters and businesses following a disaster by way of low-interest, long-term SBA loans through its Office of Disaster Assistance (ODA). The SBA disaster loan program is the only form of SBA assistance that is not limited to small business finance. The SBA is the primary means of federal assistance for the repair and rebuilding of disaster losses in the private sector, farming excluded.
The purpose of this article is to provide an outline of the factors that determine eligibility for an EIDL. An application pertaining to specific variables must be submitted for review. If the application is approved, a loan is arranged to cover specific expenses like payments on short-term agreements, accounts payable and installment payments on long-term agreements. The intent of an EIDL is to assist you in meeting your necessary financial obligations that could have been met had the disaster never occurred.
Factors that Determine Eligibility
The SBA determines your eligibility after an evaluation of your situation. Various things related to your financial obligations will be considered, including total debt obligation, operating expenses that come due during the time frame affected by the disaster and working capital required for this period. Your financial position as well as that of any partners, officers or directors who hold more than 20 percent interest will be evaluated, and all partners, officers and directors will become guarantors of the loan. It’s expected that all parties use their own resources to the greatest ability without causing undue hardship before any consideration is given to a loan. Assistance is provided only to those that the SBA deems unable to obtain credit from another source. The rate of interest on an EIDL cannot exceed 4 percent per year, nor can it exceed a 30-year term. The term is based on an individual’s ability to repay the loan.
Other Requirements
An important thing to note is that if you live in a designated flood area and you were legally required to maintain flood insurance but failed to do so, then you will not be eligible for a disaster loan. Another important condition to be aware of is that a penalty for misusing these funds is immediate repayment of one and a half times the amount of the loan, so it’s imperative that you understand what the loan can be used for and that you maintain accurate records of all expenditures for a full three years from the initialization of the loan.
How Do I Apply?
A certified or preferred lender is your best bet to help you through the application process, as these lenders have handled it many times and are familiar with the loan requirements. You can learn more about the lenders and conditions in your area by visiting the SBA’s website at http://www.sba.gov/.
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Yielding Mutual Benefits by Strategically managing Student Loans Debt

After a BA in economics in 1994, White managed to finance the degree through scholarships and work-study, running a debt of $6,000 in student loans. Working in a nonprofit housing agency in Philadelphia followed for three years after which she enrolled at Clark Atlanta in 1997, heavily depending on loans for living expenses. By the time she got her MBA her student loans debt rose to $50,000. Without a doubt costs of higher education are skyrocketing. If the last two decades are any indication, the price of two and four-year public and private colleges are exceeding inflation and family income. Last year the average tuition and fees for four-year public colleges increased almost thrice as fast as the national inflation rate.
Thus, students of all economic levels are compelled to borrow for financing education. The time is ripe for getting the better of your debt with interest rates for Federal Stafford Loans at an all-time low. The debt incurred for education should be seen as a major investment in oneself.
An example of the benefits of investing in education is Fern Williams White, 31, a 1999 graduate of Clark Atlanta University with an MBA in finance. As account associate for an Atlanta financial services firm, her salary has doubled thanks to the degree.
White got her student loans bills under control shortly after graduation by consolidating all her Federal Stafford Loans. In place of the five payments to separate lenders her monthly payment is now $391 with a saving of $150 a month.
Her consolidated Stafford Loans amount to $280 with a fixed interest rate of 7.375% over 20 years. The remainder goes into a private.
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How to Reduce the Origination Fee for Student Loans

A loan origination fee covers the cost incurred by the lender in the process of issuing your loan. This may include paying a loan agent, filing paperwork with the county or simply printing and storing documents. It is not typically possible to completely eliminate the fee. In fact, even low-cost federal loans carry an origination fee up to three percent. However, there are some things you can do to reduce the fee on your student loan so you owe less money up front on your new loan.
Prepare Applications Diligently
If you have problems with your application, you may need to resubmit them. Frequent problems include having the wrong Social Security number or wrong phone number. Every time you withdraw and resubmit an application you could be subject to another fee. Further, if there is misinformation on your application, the loan agent may have to look for your background check or credit report more than one time, increasing potential fees. Eliminate this possibility by double-checking your information before you submit. This is particularly important if you are applying online where there tend to be more errors due to lack of proofreading.
Pay Attention to Deadlines
Loans come with deadlines for applications and funding. This is particularly relevant with federal loan options. Because federal loans are often subsidized or carry grant funding, the earlier you apply the better. Missing a deadline can mean you need to rush the application through, and this will cost extra money. For example, if you are using a private loan and seeking a government guarantee, the private lender will have to file your loan documents with the US Department of Education after you have submitted them to the private lender. This can take weeks, and you will run the risk of needing to pay to rush the documents through the private lender if you wait too long.
Provide Income Statements
You may not have an income, and you will not need to submit personal income statements. However, if you are seeking loans as a dependent student, meaning your parents will pay a portion of your tuition, then you will need to provide information on their income. The same is true if your parents are the ones seeking the loans which is the case with the federal PLUS loan program. The lender may charge you a fee if the lender has to independently contact an employer or bank for income verification. Cut out this step by providing tax schedules or other verification.
File Paperwork Personally
You may not have the option to file your paperwork personally. However, if you are using collateral on your student loans, you may be able to file the lien on your own with the county registrar to reduce the loan origination fee on the debt. This is not a typical requirement on a federal loan. Some private lenders may use collateral. Simply ask about fees for filing paperwork, and then ask if you can file yourself to cut back on those fees.
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Student Loans: How to Get the Funding You Need

Many times student loans are key to whether a young adult will be able to attend college. Without them, getting a higher education may remain an unattainable dream. Luckily, many people can get a student loan without a co-signer and even if your are not financially needy.
The first step to getting a student loan is to know how to apply for one. The very first thing you need to do is fill out the Free Application for Federal Student Aid, otherwise known as the FAFSA. You can do this at http://www.fafsa.ed.gov/. This application will help qualify or disqualify you for a federal Pell grant, which needs to be done for all students — whether they will qualify or not — before looking for any other student loans. The great thing about the FAFSA is that, even if you don’t qualify for a Pell grant, it can help you qualify for a subsidized Stafford student loan where the US Department of Education pays all of the interest on the loan until repayment begins (6 months after you have left school — whether it is because you graduated or dropped out).
What kind of loan or grant you get, and how much you are offered, will depend on your Expected Family Contribution — otherwise known as EFC. If you can get a grant for some of your expenses, but not all of them, you will likely be able to obtain either a subsidized or unsubsidized student loan to pay for the rest. Even if you do not think that you will qualify for a grant or subsidized loan, you can still be offered one that is unsubsidized. This means that you will have to pay the interest from the start of the loan, but it may be easier to obtain a loan this way rather than by going to a private lender — especially if you are a young student who does not yet have a credit rating and no other adult will co-sign for you.
Whether you get a grant, subsidized student loan, or an unsubsidized student loan, if you have money left over after all of your classes and books are paid for, you can use the remainder for living expenses. You can use it to pay the school for meals and a dorm for the year or to help pay for your own apartment and groceries. This may come in handy if you are not able to work enough hours while taking a heavy load of classes.
If you cannot get any funding after review of your FAFSA, or you are not offered enough, you can always try to get student loan funding through a private lender. This may be harder to accomplish and you may need to line up a co-signer — such as your parents, spouse, or an older sibling — who has a good credit record. These student loans should also be deferred until you leave school and include a 6 month grace period.

Bad Credit Personal Loans : What Can They Do

Sometimes, bad credit personal loans are the only option that is available to some folks. Let’s face it, life just doesn’t always work the way that we want it to, and at times, through no fault of your own, you find yourself with less than a great credit rating. One way to look at this is to be discouraged and overwhelmed by the situation, but the better way to view it is as an opportunity. You know the situation that you are in, and what you can do is start to try and repair your rating, perhaps with an unsecured personal loan. There are several reasons that people often explore this option, and here are a few of them:
Debt consolidation is a real priority for some people, who are trying to get their finances back on track. By being able to combine all of their bills into one monthly bill with a lower payment they are able to take control of the situation and start turning it around.
Money for education is another commonly reported reason to explore a personal loan offer. Schooling is expensive, but it can pay great dividends when graduation day comes and you are able to get a better job. Sometimes, this kind of trade off is worth it, knowing that you’ll be making more money down the road.

House payment or down payment are also reasons to look at taking out a loan, and bad credit personal loans can work for these reasons too. Whether trying to get a new home, or stay in the one that you already have, there is a need for money and an unsecured personal loan can help in certain situations.
Just married and in need of a honeymoon to relieve all the stress that came with planning the wedding. This is what you might call a debatable use of the money, as far as whether it is a smart reason to use it, but many people figure “how many times do you get married?” and feel that it is important to celebrate this milestone in their lives.
These are just a few of the reasons that people take out bad credit personal loans. When there is no other choice, there is a least one choice left, but as with any loan, you should shop around for the best deal that you can find, even if it isn’t a cheap personal loan. That being said, this kind of loan can offer some relief, and if you take the time to get the best deal that you can and manage the money wisely you could be well on the way to repairing your credit score.