Great EIDL News for Small Business Owners!
Up until now, many of you have paid thousands or even tens of thousands of dollars in EIDL interest. But that’s finally changing! There’s good EIDL news related to EIDL payments. If you’re one of the 4 million EIDL borrowers across the US, representing around half a trillion dollars, keep reading. If you’re an entrepreneur or small business owner seeking financing and capital for your business, I’ll share a few tips at the end about what this news means for you and why it is so important.
EIDL Payment Details
Many of you have been waiting for this news since you started payments in late 2022 or early 2023. To see what I’m talking about, log in to the SBA portal at lending.sba.gov. Under COVID EIDL, click “Sign In” and “Make Payment” to view your dashboard and outstanding balance. Click “View Summary” for detailed information.
Before diving into specifics, check your messages in the portal for any important updates from the SBA. Now, let’s talk about the numbers and what’s changed today.
Principal Payments Begin
The good news is that people are finally starting to pay down their principal for their COVID EIDL loans. Nearly half a trillion dollars were distributed between 2020 and 2021 to about 15% of all small businesses across the US. While these loans were a lifeline, the accrued interest has been substantial. For example, a $995,000 loan with a 3.75% interest rate has accumulated significant interest over the deferral period.
Most EIDL borrowers had to start repaying in late 2022 or early 2023. Only now, in summer 2024, are many of you beginning to see your payments go towards the principal balance. This is good news and a reminder of the challenges you’ve faced, having paid thousands in interest up until now.
Check Your Portal
Check your SBA portal to see if you are now starting to pay down your principal. Let us know your status, whether you’ve taken advantage of the hardship accommodation plan or if you’re still catching up on interest.
Looking Ahead: Funding and Loans
As for EIDL forgiveness or reduced interest rates, there’s no new word from Congress, lawmakers, or the SBA. However, we’re keeping an eye on developments. Our EIDL forgiveness petition garnered over 6,000 signatures, and we’ve shared it with lawmakers.
Key Takeaways
- Consider Loans Carefully: Always understand the short-term and long-term consequences before taking out a loan.
- Explore Financing Options: Look into lines of credit or business credit cards, which may offer 0% interest for up to a year.
Stay tuned for more updates on funding and business-related news. If you have any questions or need further assistance, feel free to reach out. Stay well and healthy, and I’ll see you in the next update!