I resist any business-related activities on Saturdays and Sundays. But last Saturday, I promised Moe we would commit the time to applying for an EIDL loan. We filled out the forms, which was easier than placing an online order at our favorite food markets. The form requires you to state your corporate business status and answer two simple financial questions. What was your revenue for 2019 and what was your cost of goods?
By Monday morning, we received an email from SBA with our process number and that we were pre-approved for a specific amount. It’s a good number. Our choice was to accept it, ask for less or apply for more. We chose to accept, because it is a loan, and you have to pay it back. EIDL loans are capped at $150,000.
By Tuesday morning, we received an email stating the loan amount was approved, subject to our agreeing to the six pages of terms and conditions. We read them, signed the document, clicked the approval box, and within hours received another email stating the processing for our payment had begun.
We also received $2,000 that we won’t have to pay back. The rule is $1,000 for each full-time person in the business.
The terms are for 30 years and the interest rate is 3.75%, and we don’t have to make our first payment for twelve months.
If you own a small business and have not applied for an EIDL loan, I urge you to consider applying. Accepting the loan will not affect your ability to receive any other funding because it is a disaster relief loan.
I shared this with two of my clients today and they were off to the races.
Make today the day you apply for an EIDL if you own a business.