SBA CONTINUES EIDL PROGRAM
NON-RECOURSE LOANS WITHOUT LOAN FEES
NON-RECOURSE UP TO $200,000 – RECOURSE OVER $200,000
30 YEAR TERMS – BEST LOANS ANYWHERE!
Following up a year of success in the EIDL* loan program, the US Small Business Administration will increase the maximum size of EIDL loans to $500,000. If you don’t know about this program, you should. If you already have an EIDL loan, it’s likely you maxed out at $150,000; the new COVID Act allows an increase to $500,000 if you apply on or after April 6th. Here is a summary of the loan program:
| How to Qualify? | Your gross revenues of 2020 were down from 2019 |
| How much can I qualify for? | 6 months of loss of gross revenues, up to $500,000 if you apply after April 6th. If you apply before April 6th, the max is $150,000 |
| Interest Rate: | 3.75%, amortized over 30 years |
| Amortization: | 30 years |
| Term of Loan: | 30 years |
| First Payment: | 12 months from the advance of the loan |
| Personal Guarantees? | On the first $200,000, non-recourse (no personal guarantees) |
| Collateral? | General Collateral of assets of borrower. If you already have a lien in place by a lender, the SBA is second to the lender. If you are anticipating borrowing money and pledging assets, make sure you pledge the assets to the other lender before you borrower the money from the SBA |
| Loan Fees? | NO LOAN FEES |
| Use the money for what? | Few strings. The regulations and instructions only state that the funding should be used for “fixed debts, payroll, accounts payable and other bills affected by the disaster”. |
| Loan Funds Ideal For… | If you have a higher interest rate, pay down that loan. Buy capital equipment – buy out leased property – pay off debt with personal guarantees – use for payroll – use for any accounts payable – increase inventory! |
| How to apply? | Apply at: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/covid-19-economic-injury-disaster-loan#section-header-0 |
| Questions? | See this web site: FAQ – COVID-19 Economic Injury Disaster Loan (EIDL) (sba.gov) or contact Weiss LLP at rweiss@weissllp.com |
*Economic Injury Disaster Loans