SBA EIDL FREQUENTLY ASKED QUESTIONS
First National Bank Texas (FNBT)/First Convenience Bank (FCB) receives Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) proceeds from SBA applicants. In many cases, the small business loan proceeds are being directed towards personal-purpose consumer accounts. As such, we want to help ensure that customers have the information to meet their business needs and ensure the proceeds were requested properly.
What is the EDIL Program?
The SBA EIDL is designed to provide relief to businesses that have experienced a loss in revenue due to the COVID-19 pandemic. There are two different options under the program – a Loan or a Grant.
Who is eligible for the program?
Eligibility is determined by the business structure but does not include businesses that have over 500 employees.
BY SUBMITTING AN APPLICATION, AN APPLICANT PROVIDES A SELF-CERTIFICATION UNDER PENALTY OF PERJURY THAT THE INFORMATION THEY HAVE SUBMITTED IS ACCURATE.
Where can I find more information?
Consumer-Purpose Personal Account Reminder
As a valued FNBT/FCB Customer, we’d like to remind you that personal accounts are meant for “personal, family or household purpose,” as described in your “Welcome to the Family” new account packet. Customers who need an account for a business, whether a sole proprietorship, independent contractor, LLC, or partnership, need to open a separate business account in order to meet the specific needs of that relationship while complying with specific tax/accounting, business structure and account agreement requirements.
If you receive business purpose funds, including but not limited to SBA EIDL proceeds, into an account set up for personal, family, or household purposes, you may be asked questions about your business and required to provide proof of the business activity. As your family bank, any of our bankers would be happy to talk to you about our convenient business banking options.
FAILURE TO PROVIDE REQUESTED BUSINESS ACTIVITY INFORMATION OR DOCUMENTATION OR CONTINUED USE OF A PERSONAL ACCOUNT TO RUN A BUSINESS MAY LEAD TO THE RETURN OF FUNDS DEPOSITED AND CLOSURE OF YOUR ACCOUNT.
Please contact us with any questions.