Can a small business apply for a second eidl loan - tradeprofinances.com

Can a small business apply for a second eidl loan

## Can a Small Business Apply for a Second EIDL Loan?

**Yes, small businesses can apply for a second EIDL loan.** The Economic Injury Disaster Loan (EIDL) program, administered by the U.S. Small Business Administration (SBA), provides low-interest loans to small businesses and certain non-profits that have been impacted by the COVID-19 pandemic.

**Eligibility Criteria**

To be eligible for a second EIDL loan, your business must meet the following criteria:

* Be a small business with 500 or fewer employees (or meet the alternative size standard for your industry)
* Have suffered an economic loss due to the COVID-19 pandemic
* Have used all of your first EIDL loan funds
* Have not received a grant from the Shuttered Venue Operators Grant (SVOG) program

**Loan Terms**

Second EIDL loans are offered with the following terms:

* **Loan amount:** Up to $2 million (total combined EIDL loans cannot exceed $5 million)
* **Interest rate:** 3.75% for businesses, 2.75% for non-profits
* **Term:** 30 years
* **Repayment:** Monthly payments begin after the first 24 months (6 months of deferment)
* **Use of funds:** Can be used for a variety of business expenses, including payroll, rent, utilities, and debt repayment

**How to Apply**

To apply for a second EIDL loan, follow these steps:

1. Create an account on the SBA’s online portal: https://disasterloanassistance.sba.gov/ela/s/
2. Select the “Apply for a Loan” option
3. Choose “Economic Injury Disaster Loans”
4. Select “Apply for a Second EIDL Loan”
5. Complete the loan application

**Additional Information**

* **Application deadline:** The deadline to apply for a second EIDL loan is December 31, 2023.
* **Loan forgiveness:** The first $10,000 of your second EIDL loan is eligible for forgiveness if you meet certain requirements.
* **Tax implications:** EIDL loan proceeds are not taxable income, and forgiven amounts are not considered income for tax purposes.

Read More  What do you need for a 10k business loan

**FAQs**

**Q: How long does it take to receive an EIDL loan?**
A: The SBA typically processes EIDL loan applications within a few weeks. However, processing times may vary depending on the volume of applications.

**Q: Can I apply for a second EIDL loan if I have outstanding debt from the first loan?**
A: Yes, you can apply for a second EIDL loan even if you have outstanding debt from your first loan. However, you must have used all of your first loan funds.

**Q: Can I use EIDL loan funds to repay personal debt?**
A: No, EIDL loan funds cannot be used to repay personal debt. They must be used for business expenses only.

**Q: How can I get help with the EIDL loan application process?**
A: The SBA offers a variety of resources to help small businesses with the EIDL loan application process, including a hotline at (800) 659-2955.

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