Alright, let’s dive into the world of EIDL loans – the misunderstood cousins of the infamous PPP loans. You’ve heard the rumors: “Can I just wave a magic wand and poof, my loan balance disappears?” Well, hold onto your hats because I’m about to clear up the confusion and maybe throw in a little humor along the way (because who doesn't love a good chuckle when talking about taxes?).
If you’re a small business owner or a campground mogul (yes, we see you), the EIDL loan has probably been sitting there on your balance sheet like an annoying guest who overstays their welcome. But is there a way to make that loan vanish? Spoiler alert: Not exactly, but before you panic and run for the hills, let me break it down for you.
First things first: EIDL loans were designed to help businesses survive disasters (thanks, 2020). These bad boys were low-interest, long-term loans that were meant to be repaid over time, not forgiven. So, if you're waiting for the forgiveness fairy to come swooping in, you might be a bit disappointed. There’s no built-in forgiveness program for EIDL loans... yet.
But hold on, don’t go breaking open your piggy bank just yet! There are options. If you’re looking at your loan balance like it’s a mountain and wondering if you’ll ever make it to the top, the SBA has something called the Hardship Accommodation Plan. Sounds fancy, right? But really, it just means you could pay a reduced amount—think 10% of your regular monthly payment—with a minimum of $25. Sweet deal? Maybe, but interest will continue to accrue, so just know that you could face a balloon payment at the end of the loan term. But that’s a long way off, and honestly, we’re just here to make sure you breathe through it.
If your loan is up to $200,000, all you need to do is log into the My SBA Loan portal (at lending.sba.gov), find your loan info, and voilà! You’ll see the option to enroll in the hardship accommodation plan. If your loan is over $200,000, you’ll need to submit an application and provide a current-year profit and loss statement. But if your business is closed, you’ll need to show dissolution paperwork or final tax returns. It’s a bit of a process, but don’t worry, the SBA’s got your back!
And just in case you need a little hand-holding (we all do sometimes), you can reach out to the COVID-19 EIDL Service Center for extra help. They’re there to guide you through the steps, and who knows? You might end up feeling like a loan hero when it’s all said and done.
Now, let’s get real for a second. While forgiveness isn’t on the table yet, we’re not throwing in the towel. We’re launching a campaign in January to advocate for EIDL forgiveness on loans under a million bucks. This isn’t just about waving our fists in the air – we’re building a pre-packaged campaign of info that you can personalize and send to your reps. Tell them about the struggles your business has faced, how you’ve fought through the pandemic, and how you’re still standing strong today. Together, we can make some serious noise and hopefully push for some real change. It’s time for small businesses to get the relief they deserve.
While we’re still waiting on the EIDL forgiveness magic to happen, we can still take action today. Advocate for your business, take advantage of the hardship plan if needed, and keep pushing forward. After all, it’s not just about managing loans – it’s about keeping your business healthy and thriving for the long haul.
If you need help navigating your loan options or want to join our campaign for forgiveness, Campground Accounting is here for you. We’re all about making those calculated moves so you can focus on growing your campground business and living your best life. Let’s make sure your financial future is as strong as your campfire stories.
And there you have it – a dose of humor, a sprinkle of information, and a whole lot of heart. Ready to read more and take action? We’ve got your back every step of the way.
Let’s go make those calculated moves!
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Donna Bordeaux, CPA with Campground Accounting
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.