Could your business take advantage of the EIDL loan that was available through the SBA for COVID funding?
If so, the original loan was limited to $150,000, and then it increased to $500,000. Now we now have the third increase up to 2 million. Now these loans are very favorable and the interest rate is 3.75% for for-profit businesses, and they’re paid back over 30 years. So those are great terms.
One of the other big benefits has been now increase the ways that you can use the fund. They now include paying off existing debt or incurring new debt in the process. So if you have some higher interest rate loans, or maybe even bank loans that are at a higher rate, you may be able to use this EIDL loan fund to be able to pay down or get that loan down to a lower interest rate.
To apply, you have to go out to the SBA site and you’ll open up the portal that you used for the original loan. There you’ll be able to go through some steps to get increases in place. Now, we haven’t seen any of the increases come out yet in this third round, they’re looking at smaller loans first, and then we’ll be looking at the increased amount over $500,000 at the end of the year, probably in November, December area.
So be sure to head out to the SBA site and take a look and make sure that you’re utilizing more funding to its highest capacity.
I’m Donna Bordeaux with PYOPAccounting.com. Please follow us on Facebook and LinkedIn. Make sure you check out our blog and website from the link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. To contact me, email me at donna@pyopaccounting.com
Donna Bordeaux, CPA with PYOPAccounting.com
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