Millions of small businesses took out low-interest Economic Injury Disaster Loans (EIDL) from the SBA early in the pandemic. With an average loan amount of $100,000 and a 30-year term at 3.75% interest, these loans provided critical support.
However, over three years later, EIDL loans can present financing challenges for some small businesses seeking additional funding. The good news is that having an EIDL doesn't necessarily prevent approval for other types of business credit.
How EIDL Loans Impact New Financing Applications:
Many bank loan programs analyze a business's cash flow to determine repayment ability. In these cases, the monthly EIDL payment will be factored into underwriting.
However, other financing options like unsecured business lines of credit may rely less on debt servicing capacity. With programs from Line of Credit Depot, we work with banking partners to secure the most favorable revolving credit line despite existing EIDL obligations.
The key is choosing the right lending solution for your business needs and financial situation. While EIDL loans provided vital early pandemic relief, they can constrain additional financing if not properly accounted for.
Work with an experienced funding advisor to evaluate the best available credit products that work with your existing SBA loan. The right business line of credit or loan can provide financing flexibility and support growth, even with ongoing EIDL payments.
Careful planning and preparation can help ensure your small business continues moving forward, without being excessively hampered by pandemic-era relief loans.
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US Capital Source makes the application process seamless and available to every Business owner.
Submit all the necessary information to a number of potential lenders in one place! We eliminate the need to fill out multiple applications and allow you to compareloan options from different lenders. Reduce the risk of errors and time to secure a loan, as all the necessary information is collected in one application.
By submitting all the required information in one place, businesses can speed up the loan application process and receive a loan decision much faster so you can start to grow your business, more quickly.
Interest rates and repayment timeline tailored to your chosen offer. Help finance the expansion of your business.
With relationships across the country, US Credit Source is able to provide quick Lines of Credit less than two points above WSP Prime
Access working capital quick and on short-terms so you can pay back your financing sooner. Use what you need, when you need it. US Credit Source has various options for all Business Owners
Upgrade your Business with financing for Business Equipment. Equipment keeps the busy running and US Credit Source has access to fast capital for all your equipment financing needs
Receive invoice factoring and provide your business with a source of working capital to fund operations and growth.
A Government Grant program under the CARES Act. US Credit Source has helped thousands of Business Owners receive employee tax credit from 2020 and 2021
