EIDL Payments Due!
With the final loans of EIDL funding distributed earlier this year, it is hard to believe that payments are already due! However, most companies received their original loan in April or May of 2020 at the beginning of the pandemic, and repayment needs to start 30 months from that date. This means payments are due this month and next.
During the pandemic, the SBA increased the loan amount maximum allowed two times. The original amount max was $150,000, then it was $500,000, and most recently it maxed out at $2 million depending on the size and scope of the business. Loan funds could be used for any normal operating expenses and/or working capital, including payroll, purchasing equipment, and paying off debt.
According the SBA, “Since its inception, the COVID EIDL program, a federal disaster relief loan, has allocated more than $351 billion in relief aid to 3.9 million borrowers, including to the smallest of small businesses from historically underserved, disadvantaged communities.”
Loans have accrued interest during the 30 month deferment period, so borrowers will see their original loan amount slightly larger than at the borrowing date.