If you have an EIDL loan, it’s time to pay the Piper. Loan repayments start after 30 months, which for most people who were in the initial rounds will be coming due in October, November, and December, the last quarter of this year.
So to find out about your repayment terms and get this all set up, I suggest doing this now before the website gets too busy, but go set up an account through the SBA website. Now, this is not the same account that you use to apply for the loan. They have a whole different structure for the payment of the account, and you’ll be able to see all of the loans that you have outstanding for any business.
If you do have multiple, you’ll wanna set up the auto payment to make sure that those payments are made on time and you’re not late. No one wants to be in default on those loans. But it’s a good time now to go take a look and get your plan together. Some folks are gonna have some pretty substantial repayment loan amounts. So make sure you’re prepared for that.
If you were one of the few who said, look, I didn’t really need the money, and I don’t wanna hold onto it anymore. I’d like to pay this back or pay a portion back. You may do that. There is no prepayment penalty. Just as a reminder, the interest is at 3.75% unless you are a nonprofit organization. That nonprofit rate is 2.75%. So make sure that you understand interest has been accruing for all of these 30 months up until the time you start the repayment, and it will continue to accrue on your open balance throughout the term of the life of that loan. Those loans are structured to be paid back over 30 years. So you have quite a while.
So get a plan together for your EIDL loan and make sure that you understand the repayment terms and where to set that up on the website. If you search, I’ve got a link down below to the site where you can set up the repayment.
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Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and C.P.A.s don’t generally go together. Most people think of C.P.A.s as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your C.P.A., as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial C.P.A.s. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.
