Business

EIDL Loan: What You Need to Know

EIDL loans are amazing loans that were designed to help businesses during the pandemic. The following is some information about the loans and how they might benefit your business greatly.

What Is the EIDL Loan?

According to the experts at Lantern Credit, the Economic Injury Disaster Loan (EIDL) program is a loan program guaranteed by the SBA and is available to small businesses, small agricultural cooperatives, and private nonprofits in a disaster area that has suffered substantial economic damage. 

Basically, the EIDL loan is an economic injury disaster loan. It is for businesses that the pandemic has affected negatively. 

It’s a low-interest loan made available to small businesses and agricultural businesses that had trouble keeping up with their expenses because of the severe impact of Covid-19.

What Are the EIDL Loan Requirements?

To qualify for an EIDL loan, a business must have fewer than 500 employees and may not be involved in any illegal activities. 

Businesses that meet the requirement can apply so long as they are located in the United States. You can learn more about EIDL loan terms from Lantern by Sofi if you contact the institution and request assistance.

FAQs on EIDL Loan

Interested parties can apply by completing the streamlined form on the website. A representative from the lending institution will contact the business owner if any additional information is needed. 

The backlog of applications may be large. Therefore, it may take a while for the application to process. Persons who have applied for assistance should not reapply if they haven’t yet heard anything. 

Anyone who needs help with the application can call 1-800-659-2955 to request assistance. Furthermore, any parties who have received EIDL loans can request additional funds in 2021. 

The applications will be reconsidered, and monies will be issued to those parties if they qualify.

What Can the EIDL Funds Be Used On?

EIDL funds can be used for a variety of tasks related to the business. A business owner can use them to buy business supplies, office space, equipment, and the like. 

The business owner can also use the funds to pay payroll if he or she gets behind on the payroll because of Covid-19.

What Can You Not Use EIDL Funds For?

Business loan funds should not be used for personal ventures. They should also not be used for the repayment of principal loans. Building repairs and replacement should not be performed using the EIDL funds either. 

At any time, the SBA can request receipts to ensure the funds are being used as intended. The business owner will be expected to supply those receipts.

Is It Worth Getting an EIDL Loan?

It’s worth it to get an EIDL loan if a business is having issues staying afloat during the pandemic. The low-interest loan can be a lifeline for such a struggling business. The good news is that many EIDL loans have a 30-year repayment term. 

You might want to look into this loan if your business had been struggling to stay afloat during these unprecedented times. You might get a favorable response to your request.

You should now have a firm grasp of the details of the EIDL loan program. You can feel comfortable speaking to someone at a reputable lending institution about the options available to you at this time.

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