Tampa Student Loan and Bankruptcy Attorney Blog — February 12, 2023
The Financial Damage Catastrophe Mortgage (EIDL) program is a mortgage and grant program provided by the U.S. Small Enterprise Administration (SBA) to assist small companies and non-profit organizations get well from financial damage brought on by a declared catastrophe. The EIDL program supplies two sorts of monetary help: EIDL loans and EIDL grants.
- EIDL Mortgage: The EIDL mortgage is a long-term, low-interest mortgage designed to assist small companies and non-profit organizations get well from financial damage brought on by a declared catastrophe. The mortgage quantity is predicated on the financial damage suffered, and might be as much as $2 million. The mortgage should be repaid, with curiosity and costs, over a most of 30 years.
- EIDL Grant: The EIDL grant is a grant that doesn’t need to be repaid, and is designed to supply instant reduction to small companies and non-profit organizations struggling financial damage from a declared catastrophe. The grant quantity is as much as $10,000 and is supposed to assist cowl fundamental wants equivalent to lease, mortgage, and utilities, whereas the enterprise is ready for the mortgage software to be processed.
The EIDL mortgage and grant are separate applications, and companies can apply for each. Nonetheless, the EIDL grant can’t be used to pay again the EIDL mortgage.
What’s the common rate of interest for an EIDL mortgage?
The typical rate of interest for an Financial Damage Catastrophe Mortgage (EIDL) from the U.S. Small Enterprise Administration (SBA) is 3.75% for small companies and a pair of.75% for non-profit organizations. So comparatively low in as we speak’s market.
It’s necessary to notice that the rate of interest for an EIDL mortgage can differ based mostly on a variety of components, together with the dimensions of the mortgage, the creditworthiness of the borrower, and the kind of mortgage (e.g., small enterprise or non-profit). The SBA units the utmost rate of interest for EIDL loans, and the precise rate of interest provided to a borrower could also be decrease than the utmost fee.
Moreover, it’s necessary to needless to say the EIDL program is topic to alter and the rate of interest provided on the time of your mortgage software could also be completely different from the present common rate of interest.
As folks start to obtain fee notices for EIDL loans, it’s necessary to notice that EIDL loans are dischargeable in a chapter. Please seek the advice of with a chapter legal professional to judge the easiest way to method this debt, whether or not in or out of a chapter.