Tuesday, August 16, 2022

What Are the EIDL Loan Requirements?

A loan can be just what you need to get your business on the right path. The Economic Injury Disaster Loan, also known as the EIDL,What Are the EIDL Loan Requirements is one way to get your business on track in the face of any disaster.

The Qualifications By Loan

One of the first things to keep in mind with this type of loan are that you’ll need to fulfill certain qualifications just to get access to the funding. These qualifications will be investigated and verified by an independent authority so it’s best to make sure you know what they are before you do anything else. What Are the EIDL Loan Requirements

For example, you can only qualify for this type of loan if you have five hundred or fewer employees. You also have to operate ethically. A business that earns more than a third of the company’s gross income from gambling will not qualify. You also need to have a certain business type. This includes agricultural concerns as well as nonprofit organizations.

Loans Have Certain Criteria

As the experts at Lantern by SoFi remind people, “These loans have some of the lowest SBA loan rates available and a 30-year repayment period.” That makes them ideal for many purposes when it comes to helping you run a business right now. You can repay them over a long period of time and have access to the funds you need to make your business work and meet certain expenses. 

You can get a loan that has interest rates of less than four percent total. That allows you access to the kind of capital you need in order to help keep your business afloat even in the face of the aftereffects of COVID-19.

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Other Issues For Loan

The EIDL loan process can take some time. That’s due in part to the fact that you will need to provide lots of documentation. You can borrow as much as two million dollars. However, you will need to put collateral if you planning to borrow more than twenty-five thousand dollars. The loans also have a very extensive application process that requires you to indicate your income taxes goes back at least three years. Your business must also have been in business by January 31st, 2020 in order to qualify for an EIDL.

What to Use it For

Like certain other loans, these are loans that can only be used for certain expenses. However, this definition is quite broad and may include many types of bills. You can spend the funds on rent for your business. You can also spend it on utilities, the purchase of new inventory, your utility bills, your accounts payable, and certain other expenses. You cannot spend the funds on any relocation costs, bonuses for your employees, dividends for your stockholders, loan payments, repairing your facility and refinancing any existing long term debt. As such, this is one loan that has certain highly detailed restrictions.

If you’re interested in this type of loan and you qualify, it’s time to apply today.

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