SBA quadruples COVID-19 EIDL limit to $2 million
Could your business take advantage of the EIDL loan that was available through the SBA for COVID funding?
If so, the original loan was limited to $150,000, and then it increased to $500,000. Now we now have the third increase up to 2 million. Now these loans are very favorable and the interest rate is 3.75% for for-profit businesses, and they’re paid back over 30 years. So those are great terms.
One of the other big benefits has been now increase the ways that you can use the fund. They now include paying off existing debt or incurring new debt in the process. So if you have some higher interest rate loans, or maybe even bank loans that are at a higher rate, you may be able to use this EIDL loan fund to be able to pay down or get that loan down to a lower interest rate.
To apply, you have to go out to the SBA site and you’ll open up the portal that you used for the original loan. There you’ll be able to go through some steps to get increases in place. Now, we haven’t seen any of the increases come out yet in this third round, they’re looking at smaller loans first, and then we’ll be looking at the increased amount over $500,000 at the end of the year, probably in November, December area.
So be sure to head out to the SBA site and take a look and make sure that you’re utilizing more funding to its highest capacity.
I’m Donna Bordeaux from CampgroundAccounting.com. Please follow on Facebook and Instagram. Make sure you check out our blog and our website from the link below. Subscribe to our YouTube channel and hit the bell to be notified when we post. To contact me, email me at email@example.com.
Donna Bordeaux, CPA with Campground Accounting
What happens when you send two CPAs out into the relaxing outdoors to camp? You get CampgroundAccounting.com. Donna and Chad have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They camp and travel across the country every chance they get, so it’s just a natural fit that they focus their CPA skills on helping campground owners throughout the USA grow their businesses and minimize the impact of taxes. They understand the key performance indicators and specialized issues that face RV park owners every day.