$10,000 EIDL GRANT

How much,it was agreed way back in the thread,the amount of your offer and the amount you decide to take, must be disclosed. Lol

 

That is how I read it as well. My EIDL came through just fine.

 

I was approved for $27k on the EIDL... Not taking it now after reading everything about it. Better keep dam good records and be ready to show every dime you spent that money on. You can't use it to pay off debt like truck loan. Can't pay off loans with that money unless it was a direct impact of covid-19..
Sorry but if im having to pay the loan back they shouldn't have a say on what the money is going towards.

 

Can't you use the EIDL loan to cover insurance? Depending on how much you pay per year, you can knock it off by at least ten grand or more. Also, you can knock off the rental monthly fee. If you used your credit card to pay off insurance, you can then use those funds to pay off the credit card. You can pay for your IRP using the EIDL loan. That's about another two grand.

By using the EIDL loan for purposes above would leave more funds for you to pay off your long term loans.
Why people should pay more interest on the loans they have because they can't pay it off quickly enough due to Covid-19?

There are ways for them not to let you use those funds. But if you do some research, there is a way how to rightfully use those funds since we have been impacted.

 

I don’t see how they could realistically track spending. Unless the moneys in a completely separate account. Misuse of funds, could result in re paying the loan, at 1.5 X’s the amount. I’ve heard of some lobbying to ease the guidelines. It’s sure to be an evolving thing, Over enforcement will only cause Bussinesses hardship. Time will tell. Best thing to do, is pay it back, ASAP, once the dust settles. Unless You can put the money to immediate use, the actual interest rate, for only using a portion, while paying for the full amount, turns it into a very expensive Bridge Loan.

 

Too many people are confusing the PPP terms and the EIDL. They are completely different.

The only thing it states in the loan docs that you can’t use the EIDL funds for is providing loans to others, distributions to owners, bonuses, etc. The EIDL funds are to be used as working capital to run your business. It even states in the loan docs that when you buy equipment or goods to buy items made in the USA if possible.

Yes you need to keep records of where it is spent. Save the invoices or receipts, it’s that simple.

 

They track it by you having to send in the statements. Every year you have to submit them

 

Yes working capital is what it says. But for example I have a truck loan with higher interest then 3.75% I couldn't pay off my truck loan or Apu loan with the money. That would be against the rules to do so..

 

Correct, but again, you can use the loan proceeds to buy fuel, pay insurance, wages, tires, etc, and then use your Incoming revenue to pay off your long term loan. Or even better, pay off accounts payable and finance your receivables (quit factoring). That would be much higher return on the money.

It’s a stupid “hide the pea under the shell” game, but it can be done. Every farmer with an FSA operating loan plays the game every year.

 

Yeah benefit people that aren't leased to a carrier like me. My fuel is taken out weekly with good fuel discounts and insurance for me is 200 a month also taken out my check lol