In SBA Economic Injury and Disaster Loan (EIDL) news, the IRS has provided thousands of new tax transcripts to the SBA to help finalize pending EIDL loan increase applications. For the hundreds of thousands of small business owners still waiting for EIDL increases, this is big news. We go into the details below.
In addition, if you're considering how much funding to take on for your business and whether or not you should take an SBA EIDL loan increase, we have important considerations for you which can help save you money in the long run.
4,000 New Tax Transcripts Have Made it to EIDL Loan Officers
According to an SBA source, the IRS provided the SBA with approximately 4,000 new tax transcripts for borrowers, who previously had errors holding up their EIDL loan increase applications.
This is good news for the tens of thousands of small business owners (or more) still waiting for a decision on their EIDL loan increase — and EIDL applicants currently in reconsideration.
Our latest poll shows that 25% of borrowers are still waiting for an initial EIDL loan increase decision and 50% have been denied and/or are trying EIDL reconsideration.
Alternatives to EIDL Loans That May Save You Money in the Long Run
As millions of businesses await EIDL 2.0, which will increase EIDL loan limits to $2 million as well as change eligible uses of EIDL loans, there are important financing implications to keep in mind.
Here's the takeaway: If you take a $500,000 EIDL loan, for example, your daily interest may be $70+ if you only make the minimum payments over 30 years.
While interest rates are at an all-time low and capital is relatively cheap, capital still has costs associated with it. If you take an EIDL loan or a business loan, interest will start accruing on your outstanding balance right away.
We go over the pros and cons of term loans and lines of credit, as well as what to keep in mind as you acquire capital for you small business. There are also ways to make your business more resilient to economic changes without taking on additional funding — here are 5 tips to making your business more resilient.
Conclusion: EIDL Is Progressing But Make Sure You Know All Your Options
According to our SBA sources, thousands of loan officers continue to work hard to review EIDL applications and EIDL reconsiderations. In addition, the IRS is working hard to get outstanding tax transcripts to the SBA so applications can be reviewed faster.
At the same time, don't forget to educate yourself on other financing options and some of the pros and cons of each. If you want to find out about even more funding options you can join Skip Plus (free two weeks).
Finally, if you want to be entered into our weekly $1,000 grant giveaways, be sure you've subscribed to our YouTube channel and leave a comment in a video once per week