New COVID EIDL Available!
As of September 8, 2021, a new increase and policy change has been instrumented for the COVID EIDL. Now businesses can apply for up to $2 million, opposed to the previous $500,000. Additionally, use of funds was expanded to include payment and pre-payment of business non-federal debt incurred at any time. Currently, there is no timeline when funds need to be used by.
Businesses should act quickly, as the expiration for the program has a hard stop date of December 31, 2021. Contact us via email or by calling 331-442-4472.
Requirements for eligibility:
• Businesses have to have been in place by January 31, 2020.
• Calculations are based on 2019 revenues and cost of goods sold. For businesses started in January of 2020 the SBA will determine the loan amount.
• For profit businesses must have a credit score of 570+.
• Under 500 employees and 20 locations.
Details of loan:
• Long term amortization of 30 years.
• Fixed rate of 3.75% (non-profits eligible for 2.75% fixed rate.)
• 24 months of deferment available (interest does accrue during this period.)
• Maximum loan amount is $2M.
• Loans below $500,000 are being approved immediately. Beginning October 8, loans over $500,000 will begin processing.
• Collateral is required for loans over $25,000. Personal guaranty for loans over $200,000.
• Filing fees range from $0-100 based on loan amount.
Let us help you calculate your potential EIDL increase! We are currently working with clients on the best way to utilize these funds. An injection of working capital like this can be critical to an organization and requires a strategy that looks at the big picture. For instance, the EIDL loan can be used towards prepayment of commercial debt, which will help for years to come.
Another strategy our firm is using is a two-pronged approach to funding. If a business is eligible for additional funds, we are working with them to apply for up to $500,000 today and then the remaining amount at the October 8 application opening. This means clients will have access to capital quicker, and possibly avoid the chaos of applications starting October 8.
To find out what you qualify for and build the best strategy for funds, contact us today for a free consultation. Contact us via email or by calling 331-442-4472.