In addition, you’ll have to pay back the UCC filing fee of $100 if one applies to your loan. There is no prepayment penalty but it is possible a minimal amount of interest has accrued from the time the loan was disbursed. You must have your 10-digit loan number and a payment amount in order to pay it back. The website you can use to repay your EIDL loan can be found at Pay.gov. How do you do that? It can definitely be confusing! Click To Tweet Whatever the reason, you may want to pay your EIDL or PPP loan back. You aren’t sure your business will survive to be able to repay a loan.You don’t think most of your PPP loan will be eligible for forgiveness.You can’t use the EIDL funds or PPP funds the way you hoped.You didn’t understand the loan terms when you applied.You just wanted the EIDL grant and not an EIDL loan.Get the latest information, guidance and resources on Coronavirus (COVID-19) to help you protect what matters most on our Coronavirus Resource Center.If your business received an Economic Injury Disaster Loan (EIDL) or Paycheck Protection Program (PPP) loan, you may have determined it isn’t a good fit for your small business for any number of reasons: Any business or individual considering a PPP loan should identify a lender and submit a PPP application as soon as possible. The first round of funds were allocated in less than two weeks this additional funding is expected to be depleted even faster. Loans are being processed on a first come, first served basis. Applications are first come, first served.Please check the SBA website for a current list of lenders. While some institutions require that a business have an existing relationship in order to apply, this is not a requirement for many PPP lenders. Several non-banks lenders, including PayPal and Square, are also authorized to make PPP loans. PPP loans are available through banking institutions of all sizes, from large national banks to smaller community banks and credit unions. A range of bank and nonbank lenders can make PPP loans.Process is backlogged timeframes are much longer than for PPP loans. Process is expected to take no more than 10 dates from application to funding. Collateral may be required for loans above $25,000 (the SBA is flexible). No personal guarantee required for loans up to $200,000. Payroll, rent, mortgage expenses and utilities if applicant does not obtain a PPP loan. Payroll, mortgage interest, rent, utilitiesĬapital and expenses required to relieve the injury caused by COVID-19. $1000 for eligible individuals $10,000 for eligible businesses. Up to $2 M 2.75 – 4% interest rate up to 30 year repayment term 1 year deferral period loan cannot be forgiven. Up to $10 M 1% interest rate, 2 year repayment term 6 mo. Here is a brief comparison of each loan type: Eligibility criteria is similar for both PPP and EIDL loans (though not identical). A business may apply for both loans but cannot use them for the same purposes. Businesses are permitted to obtain both a PPP Loan and an Economic Injury Disaster Loan (EIDL).The loan must be repaid within two years from the date of distribution. Loan payments will be deferred for six months, though interest will continue to accrue over this period. If a business uses less than 75% for payroll, the amount of loan forgiveness will be reduced accordingly, and any amounts that are not forgiven will convert to a loan with a 1% interest rate. PPP loans will be fully forgiven if at least 75% of the loan proceeds are used to cover payroll costs. Loan proceeds may not be used for other purposes. Loan proceeds can be used to cover payroll, mortgage interest, rent and utilities. Businesses and self-employed individuals can obtain loans of up to 2.5x the average of their monthly payroll expenses, up to a cap of $10 million. Businesses can obtain loans to cover payroll and other limited expenses A borrower’s maximum loan amount under the PPP is calculated based on averaging monthly payroll expenses.Please note that applying for a PPP loan may impact an individual’s ability to apply for unemployment programs. Self-employed individuals such as independent contractors or sole proprietors are eligible for a PPP loan if they were in operation on February 15, 2020, have self-employment income, and meet certain other criteria. Independent contractors and sole proprietors can apply.There are other eligibility criteria that apply specifically to PPP loans – businesses should ensure they satisfy applicable criteria prior to submitting an application. A business that meets the SBA size standard for its industry based on headcount or annual receipts may also be eligible. PPP loans are available to any business with 500 or fewer employees. Businesses with 500 or fewer employees are eligible.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |