SBA EIDL Loan Payment Due Date If You Got A Loan Increase
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Hello from FreedomTax Accounting, we are an accounting firm where we provide quality tax and accounting services and also help small business owners achieve their financial goals.
We wanted to do this quick video because in the last couple of days we have been providing consultations for small business owners and we see a lot of confusion especially regarding when the small business owners need to start making payments towards their SBA EIDL loan if they received an EIDL loan increase.
Remember that if you got an EIDL loan from the SBA in 2020 or in 2021, the SBA did give you the option or is still giving you the option of applying for an increase towards your loan. Now, these people who are getting the loan, some of them are a little confused because they think they’re getting a second SBA EIDL loan and that’s not true; it’s only one loan that you get from the SBA, the SBA is just giving you an increase on your original loan.
So, the SBA rules say that you have 24 months to start making payments towards your EIDL loan with SBA. Now, even if you got an increase later on, the starting date where you start counting those 24 months is the month that you got the original first deposit of your loan. So, if you got your EIDL loan increase deposit later, you do not start counting the 24 months when you receive the increase. For example, if you got your SBA EIDL loan in June 2020, and you got your EIDL loan increase in December of 2021, you do have to start making payments towards the complete new balance of the loan in June of 2022; because from June 2020, you count 2 years, and that’s June 2022.
That means that a lot of small businesses started getting their EIDL loans in May, June and July of 2020, so for a lot of small businesses They’re going to have to start making EIDL loan payments this year. So, we just wanted to clarify that.
Also, one thing we wanted to clarify is that, remember that even though you have 24 months to start making payments towards your EIDL loan, the interest is accruing in all that time; from day one that you got your loan funds, the interest is accruing.
Thank you for watching this video, I hope you have received value out of this information. We just wanted to clarify that because a lot of people thought they had 2 years from the date they got the second deposit from the SBA, from the date they got the increase, no, it’s 24 months from the first, from the original, EIDL loan deposit.
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