The SBA raised COVID-19 EIDL loan limits to $2 million, up from $500,000. Donna Genie and Donna Bordeaux explain the 3.75% interest rate, 30-year terms, and that you can now use funds to pay off existing debt. Larger increases above $500,000 were expected to roll out around November-December.
$150,000
$500,000
3.75%
30 years
The SBA website portal used for the original loan
Did your business take advantage of the Eidl loans that were available through the SBA for Covid funding? If so, the original loan was limited to $150,000 and then at one point it increased to $500,000. Well, we now have the third increase up million dollars. Now these loans are very favorable in that the interest rate is 3.75% for profit businesses and they're paid back over 30 years. So those are great terms. One of the other big benefits is they've now increased the ways that you can use the funds. 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 lo 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 the increases in place. Now we haven't seen any of the increases come out yet in this third round. They are looking at smaller loans first and then we'll be looking at the increased amounts over $500,000 at the end of the year, probably in the November December area. So be sure to head out to the SBA site and take a look and make sure that you're utilizing your funding to its highest capacity.
Donna Bordeaux with pyopaccounting.com Please follow us on Facebook and Instagram. Make sure you check out our blog and our website from the L below. Subscribe to our YouTube channel and hit the bell to be notified when we post. To contact me, email me@donnayopaccounting.com.
