After an overwhelming demand for funds over the last few months, EIDL applications are now being limited to the agriculture industry. Many of the small businesses that applied for the loans in Q1 are now beginning to get their funding.
The process starts with an email from the SBA to verify your identity and process the loan request. Several days later you'll receive the closing docs for signature. After the closing docs are signed, most loans are funded within 2 business days.
What does this mean for your business if you just received your EIDL loan?
Here’s everything you need to know.
EIDL Loans
What can I use the money for?
Unlike the PPP loan, the EIDL loan can simply be used to support your business with working capital to cover day-to-day expenses.
Examples of these expenses include:
- Payroll
- Accounts Payable
- Materials/Inventory
- Rent
- Mortgage payments
- almost any other business obligations
When do I have to start making payments?
Your first payment is due 12 months from funding.
What are the terms?
Originally small businesses were eligible to receive up to $2M in support, but after an overwhelming demand for the loans, they were capped at $150k.
Loans are due over 30 years at 3.75% interest.
What do I do with the advance that I received as part of my application?
The advance was forgivable UNLESS you also received funds as part of the Paycheck Protection Program. In that case, the forgivable portion attributable to the PPP loan will be reduced by the amount of the EIDL advance you received.
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