$150,000 EIDL LOAN FOR TAX-EXEMPT TRUST!

Welcome to another blog update! This week’s video is about getting an EIDL Loan through your tax-exempt trust. You will have gone through one of our Trust 101 courses to set up your trust as well as our Business Finance 101 course to build your trust’s credit in order to be ready to follow along with this video. 

An EIDL is an Economic Injury Disaster Loan that provides economic relief to small businesses and non-profits that are experiencing loss of revenue temporarily. The application for this can be found on the SBA website under “Coronavirus Relief Options.” Follow along with these step-by-step instructions or watch the video above to get started with your application!

You will begin by filling out an eligibility verification. Just select the option that best describes your trust (“Applicant is a private non-profit organization that is a non-governmental agency or entity that currently has an effective ruling letter from the IRS granting tax exemption under sections 501(c),(d), or (e) of the Internal Revenue Code…”). You will then check all of the following under “Review and Check All of the Following.”

You will now begin filling out your application for the EIDL Loan. You will only have to fill out the sections of this form that have red lines beside the blanks. 

• Enter your business name as well as your trade name (these will both be the name of your trust). You will need your EIN as well. Your “Organization Type” will be “Trust.”
• Check that you are a non-profit and then check that you are NOT a franchise. 
• Your Gross Revenue and Cost of Goods are addressed in our Business Finance 101 course. The Academy goes over why you would put down the numbers we suggest and what they mean exactly. Your Cost of Goods should be roughly 20% of your Gross Revenue.
• You may skip the next four blanks as they are not required to be filled out. 
• Enter your primary business address, phone, email, and establishment date. This will be the same date as your “Current Ownership” date.
• Your “Business Activity” will be whatever description closely relates to the activities of your trust. For Christian Ministries, we chose “Faith-Based Organization,” however, you may choose “Educational Services” if you are a school…etc. You will choose a more activity next, such as “Seminars” or, like us, “Church.”
• You will put “0” down under “Number of Employees” as the purpose of this document is to provide information for them to look up your business credit profile and does not focus on employees.

On the next page, you will enter information about yourself.

• First, you will answer “Is your business owned by a business entity?” with NO.
• You may put yourself as the owner, or any other option you see fit to your particular situation.
• If you are the sole shareholder or trustee of your trust you would put “100%” for “Ownership Percent,” 50% if there are two trustees, 33% for three…etc.
• You will fill out the rest of your personal information and continue to the next page.

The only part of additional information you are required to fill out is the “Where to Send Funds” and you will enter your trust’s bank account information. You do not need to fill out the blue highlighted section as you did not have anyone filling the application out for you. 

You will be directed to a page to review your answers and then given confirmation information. They may ask for more documentation later on down the line and you will be given an area to upload any documents they ask for. And that’s it! You have successfully filled out the application for an EIDL Loan!

If you have any questions regarding Faith-Based Organizations and the SBA please visit this PDF: https://www.sba.gov/sites/default/files/2020-06/SBA%20Faith-Based%20FAQ%20Final-508.pdf