Does Your Small Business Need A Loan? Consider An EIDL Loan Today!
Being a small business owner is difficult on even the best days. Being a small business owner during Covid has been nearly impossible. As we begin to return to our “new normal,” your small business may still be struggling to make ends meet. And while this is incredibly stressful for you as a business owner, EIDL loans are still available to help improve your circumstances. But understanding how to best support your current situation can be tricky! That’s why we’re here to break down this loan option and give you a few new updates to it.
What is an EIDL loan, you ask? It is a low-interest fixed-rate long-term loan that must be repaid to help small businesses overcome the effects of the pandemic by giving borrowers working capital to meet their operating expenses. As of September 2021, there have been some changes to the terms of these loans, making it even more attractive to business owners. However, even if you were granted this loan before the changes, your loan is still eligible for them.
In September, the SBA raised the maximum loan amount from 500,000 dollars to two million dollars and began approving loans over 500,000 in October. Just know that loans that exceed 25,000 will require some collateral, and loans exceeding 200,000 will require a personal guarantee. Payments toward these loans will be deferred for 24 months while interest accrues, but there is no penalty for prepayment. Additionally, the use of funds has expanded to include payment toward prepayment of business non-federal debt incurred at any time and payment of federal debt.
EIDL loans are still available, and you can apply directly through the SBA. Click here to access the application or click here to apply for an increase. And remember, the deadline to apply is 12/31/2021, and if you feel this loan will best suit the needs of your business, you should apply as soon as possible.
If you need any further assistance on navigating the application, feel free to contact us today!
