Now that we are approaching a year into EIDL loans, repayment is starting to be discussed. However, there are a few key highlights you should know. In order to shed some light on the subject, Lindsay Wiley provides a quick breakdown. Watch the video above or click here to watch the video on our YouTube channel.
Another thing I wanted to go over, which I’m starting to see on the applications, is the ability to refinance your EIDL loans. Don’t do this. Do not refinance because what happens is if you do this, not only do you have to now pay this thing back in five years versus the 30 that they had originally at 3%, you’re down to 1% over five years stupid.
The only reason why they’re doing this is because government wants their money back because they’re poor. They’ve been throwing money out at us for the last year and a half. Don’t do it. Just deny it. Say no. If they go through anything that says, “Oh yeah, no, we’ll get you more PPP.” Don’t believe it.
Now, granted, your EIDL amount does help get you a better max loan from PPP. If you had taken out a substantial EIDL loan, like a lot of my clients got around $150,000. And in doing that, then they’ll calculate that into the benefits that you could qualify for, based on your monthly payroll. They say you add that in, it’s going to add another, possibly five, 10 to 15 to $20,000 on top of it.
So definitely add in what you got from EIDL, but do not refinance it. Absolutely do not. Let this train run on its tracks because I have a feeling that, come years from now, when the government’s trying to figure out how to come back and collect on this 30-year loan, most or any it, some legislation you figure is going to get passed. So they’re just going to let it go. If not, they’re going to really downsize it incredibly amount to something that’s doable to payback.
Can you imagine in 30 years, the government chasing down half of America and going, “I’d like to get paid back now.” I will be in my seventies, I know that. Most people will either be dead or much older, around my age in their seventies or eighties. I feel like it’s going to be very different point.
Do not refinance your EIDL loan!