If you’re wondering how long it will take to get an Eidl loan increase, the answer depends on a few factors. Keep reading to learn more.
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How long does the process take?
The EIDL loan increase approval process may take a few days or up to two weeks. You will need to provide the SBA with some basic information about your business and yourself, as well as some financial documents.
How to apply for an EIDL loan increase
If your business has been impacted by the coronavirus pandemic, you may be eligible for an Economic Injury Disaster Loan (EIDL) through the U.S. Small Business Administration (SBA).
If you have already received an EIDL and your circumstances have changed, you may be eligible for an EIDL loan increase. You can apply for an EIDL loan increase online through the SBA’s Disaster Loan Assistance portal.
To apply for an EIDL loan increase, you will need to login to the Disaster Loan Assistance portal with the same username and password that you used to apply for your original EIDL loan. Once you are logged in, you will need to fill out and submit a new Application for Financial Assistance.
It is important to note that you will only be able to apply for an EIDL loan increase if your business has experienced a further decrease in revenue since you originally applied for the loan.
Once you have submitted your Application for Financial Assistance, the SBA will review your application and contact you if they have any questions. If your application is approved, you will receive a notice of approval from the SBA and your loan amount will be increased accordingly.
What is the maximum loan amount?
The maximum loan amount is $150,000.
How to use the loan increase
The amount of your Economic Injury Disaster Loan may be increased if your business has suffered additional economic injury after your original loan was made. If you think you may be eligible for an increase, you should contact your SBA district office to request an explanation of the process and to begin the application process.
It is important to note that not all businesses will be eligible for a loan increase. To be eligible, your business must demonstrate that it has suffered additional economic injury as a result of the continuing effects of the disaster. You will also need to show that you have used the original loan amount for its intended purpose, and that you still need additional financial assistance to recover from the disaster.
If you are approved for a loan increase, the SBA will work with you to determine the appropriate new loan amount. The process can take several weeks from start to finish, so it is important to begin the application process as soon as possible if you think you may be eligible.
What are the terms of the loan?
The Eidl Loan terms are very simple. You will be given a loan for 3% of your total annual revenue up to $1,000,000. The loan will have a 10-year repayment plan and you will be responsible for paying all interest and fees associated with the loan. There are no prepayment penalties associated with the Eidl Loan so you can pay off the loan at any time without penalty.
How to repay the loan
The SBA’s Economic Injury Disaster Loan (EIDL) program provides small businesses and nonprofits with working capital loans of up to $2 million to help overcome the temporary loss of revenue they are experiencing due to the coronavirus (COVID-19) pandemic.
EIDL loans can be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses and 2.75% for nonprofits with terms up to 30 years.
These loans are fully guaranteed by the SBA and do not require personal guarantees or collateral. You can apply for an EIDL loan through the SBA’s disaster assistance website.
If you have already received an EIDL loan, you may be eligible to request an increase in your loan amount to cover additional economic injury caused by COVID-19. You can submit a request for an increase through the same portal where you originally applied for your loan.
Your loan increase will be based on your previous utilization of funds and your updated need for working capital, as well as your ability to repay the increased amount under normal business conditions. If you have already used portions of your original loan for purposes not eligible under the EIDL program, you may not be eligible for a loan increase.
Once you submit a request for a loan increase, the SBA will review your application and supporting documentation to determine whether or not you are eligible for additional funding. The review process usually takes about two weeks, but may take longer depending on the workload of SBA personnel at the time of your request.