Should You Take The Loan Offer from the EIDL?
You may have opened your inbox in the last couple of weeks to discover an email from the Small Business Administration (SBA), finally offering you Economic Injury Disaster Loan (EIDL) money you applied for a couple of months ago.
Many business owners just like you jumped at the opportunity to get money from the EIDL once the CARES Act went into effect. There was such a rush of applications that funding was seriously backed up, and now the loan offers are coming in.
So, what’s the offer?
The EIDL is a 30-year loan at 3.75% interest (with non-profits qualifying for 2.75% interest). While some people are getting a smaller range of options ($1,000–15,000, for example), others have gotten options to choose within ranges up to $150,000.
If you’re one of the business owners who received an EIDL loan offer, you might be wondering what to do next. Should you take it? How can you use it?
This video has a lot of great information for you to consider:
If you aren’t sure about taking the EIDL, it may be because you aren’t sure how to best use it. If that’s the case, reach out to us and let’s talk. We have resources to support you to use this EIDL money to shore up your business systems.
Most business owners who are ready to create a next level of success need to uplevel the systems that support them, including their legal, insurance, financial and tax (LIFT) systems. That’s where we come in.
We can work with you to evaluate where there are holes in your LIFT foundation that could have left you in a shaky position once Covid hit. Now, with your EIDL resources, you can strengthen your foundation and be ready to thrive, no matter what comes our way.
If the risks and restrictions about EIDL worry you, remember these resources are here to help you, as are we, so you don’t have to go it alone. With a low interest rate and 30 years to pay it back, your payment is likely to be under $600 a month. Consider what you can do with the loan over the next year to ensure you are earning at least the payment amount every month over the next 30 years.
If you decide that you do want the EIDL loan, things will start moving fast. The paperwork comes to you within 48 hours, and once you fill that out, the money could hit your bank account as soon as the next day. That means you’ll be able to immediately use that money to get your business back on its feet, so you can focus on expanding your profits.
If you’d like to talk before you take the loan, give us a call. We’re here to support your wise decision-making process.
This article is a service of Greg Gordillo, Family Business Lawyer™. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer a LIFT Start-Up Session™ or a LIFT Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Call us today to schedule.