Eligible Small Businesses may borrow up to $2 million, with a fixed interest rate not to exceed 3.750 percent (2.750% for nonprofits) with loan terms of up to thirty (30) years under the Economic Income Disaster Loan (EIDL) Program.
We are advised that the First $15,000 is being advanced very quickly. Of that advance the first $10,000 will be treated as a grant.
These loans may not be used to refinance other long term debt. For loans of $200,000 or more, guarantees secured by mortgages on homes may be required by owners, partners and stakeholders who hold and interest of 20% or more in the borrower. Personal guarantees secured by mortgages may not be required for loans under $200,000
For some small businesses, these loans may represent a great option for financing. For others, these loans may not be the best option. For those for whom these loans may make sense, we recommend preparing to be able to file an application as soon as possible. However, we are recommending against entering into binding loan obligations without first consulting with an attorney who can explain all the pros and cons of these loans.