The SBA has two loan programs to help small businesses impacted by COVID-19: Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program (PPP). If your business is eligible, you can get both of these loans and use the funds at the same time, as long as you don’t use them for the same purpose.
How can I pay back my EIDL loan?
The website you can use to repay your EIDL loan can be found at Pay.gov. You must have your 10-digit loan number and a payment amount in order to pay it back. There is no prepayment penalty but it is possible a minimal amount of interest has accrued from the time the loan was disbursed.
What’s the interest rate on an EIDL loan?
2. Can I Use EIDL to Pay Off Debt? The EIDL carries a 3.75% interest rate (2.75% for non-profits) which makes it less expensive than other types of unsecured small business financing available now. As a result, we’re seeing lots of questions around using these loans to pay down or pay off other debts.
What can I use my EIDL advance for?
You can also use it to cover monthly financial obligations such as loan and credit card payments, however, you cannot pay the entirety of the balance of these debts as it would be considered refinancing which is not a permissible use of EIDL funds. What can I spend my EIDL advance on?
Where can I get assistance for an EIDL?
Get back on track today with US Fund Source’s EIDL Assistance. *At this time, US Fund Source is offering assistance with EIDL (Economic Injury Disaster Loans) applications directly through the US Small Business Administration (“SBA”). Each EIDL application is individually reviewed, and any loan offers are based on your individual circumstances.
How long does it take to get an EIDL advance?
An EIDL advance will be issued to eligible applicants within 3 days of receiving and SBA confirmation number. If you meet the minimum requirements to apply for a disaster loan, the grant will be available to you whether or not your loan application is approved. What services does uSFS (US Fund Source) Provide through their application assistance?
Which is the best alternative to an EIDL loan?
The Best Alternatives To EIDL & PPP Loans. 1 SBA 7 (a) Loans. The 7 (a) loan program is the flagship program of the Small Business Administration (SBA). These loans can be used for many business 2 SBA 504 Loans. 3 Main Street Lending Program. 4 Community Development Financial Institutions. 5 Online Lenders.
Can a small business get an EIDL loan?
With millions out of work and small businesses across the country struggling to remain afloat, we’re all facing an uncertain future. For some businesses, the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loan initiatives have provided a needed financial lifeline.
What can the EIDL advance be used for?
The advance can be used for maintaining payroll, proving sick leave to employees, rent or mortgage payments, and other obligations. While the EIDL advance was originally deducted from PPP forgiveness amounts, this changed with the second stimulus bill released on December 27, 2020. The EIDL advance does not reduce your PPP forgiveness amount.
