Second, those businesses who received an initial EIDL loan, and were turned down for an increase. First, those who applied for an EIDL, and were denied. "For the past several months, we've received hundreds of calls from small business owners and entrepreneurs who fall into one of three categories. For the millions of small business owners who have applied for EIDLs previously, and have been denied, there are several important, yet often unknown, options available to them that surpass the end-of-year (EOY) deadline. Decemwill be the last day for new SBA loan applications to be accepted. Surprisingly, there are still small businesses who have never applied for the EIDL disaster loan program. The Small Business Administration (SBA) deadline to submit new Economic Injury Disaster Loan (EIDL) applications is fast approaching.
Bostic, CPA, is a director at Boyer & Ritter with experience providing tax and accounting services for closely-held businesses, individuals, and not-for-profit organizations.Disaster Loan Advisors was featured on Yahoo! Finance and other news media with this original press coverage of this story.
EIDL LOAN INCREASE FULL
We are here to work with you and your company to help you get the full benefits of COVID-19 economic relief.īenjamin R. The Boyer & Ritter team is keeping track of the latest information and guidance. If you have an EIDL or are considering applying for one, you’ll want to check out the full FAQ. Even borrowers who previously received an EIDL to help with coronavirus-related expenses can receive a separate disaster loan. Separate EIDLs for disaster relief are available to businesses and nonprofits in areas impacted by civil unrest, as long as they are in an area covered by a disaster declaration.
EIDL LOAN INCREASE HOW TO
The FAQ has instructions on how to repay loans online or by mail.ĮIDLs for disaster loans includes civil unrest That means if a business received a $100,000 PPP loan and a $10,000 EIDL advance, its PPP loan forgiveness would be $90,000. Why PPP loan recipients may want to repay their EIDL advance quicklyĮIDL advances – which, as mentioned above, could be up to $10,000 – are deducted from any PPP loan forgiveness. You can find the full FAQ here, and the following are two additional important takeaways: The recent guidance in the FAQ also spells out how to repay loans and advances – something some businesses may want to do if they also received forgivable PPP loans – as well as information about disaster EIDLs and other topics. Recipients can use the loans for working capital and everyday operating expenses, such as the continuation of health care benefits, rent, utilities, fixed debt payments.
If a business received a PPP loan, their EIDL advance reduces the available forgiveness and the advance effectively turns into a 1 percent loan.īorrowers have up to 30 years to repay their EIDL loan at 3.75 percent for businesses and 2.75 percent for nonprofits. However, EIDL applicants could have received an advance of up to $10,000 they do not have to repay unless they also receive a PPP loan. Unlike Paycheck Protection Program loans, EIDL loans are not forgivable. The agency’s recently released FAQ, however, still mentions the availability of EIDLs over $200,000 that require personal guarantees. SBA officials told us they are capping loans at $150,000 due to high demand. Businesses that received an Economic Injury Disaster Loans (EIDLs) under $150,000 can go back and borrow up to that amount, according to the Small Business Administration.Īs long as the original loan covered less than six months of working capital, businesses can increase their EIDL loan up to $150,000 or six months of working capital, whichever is lower.
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