Hey what's going on everybody? Today is
Thursday
September 3rd. Today i'm going to be
talking about how to pay
your EIDL loan back or make payments on
it,
whatever it is you want to do. As you
know the EIDL
has deferred payments for a year however,
in that time you're still accruing
interest. So you know, it might be a good
idea to start paying it back
sooner than later. And you, I think
personally, I think it's worth paying
back
sooner than 30 years, you know, the term
of the loan. So
if you just got the EIDL loan you might
you might not know what to do,
or might not know
how to pay it back, or what to look
for but I'm going to walk you through the
process
right now. Because one of my clients just
received a statement from the SBA
about their EIDL loan and it's got
instructions on it on how to pay and
everything. So let's walk through that
right now.
Okay so here you can see the statement
from the SBA. I've redacted the loan
number and the company name and
everything
but you know, the statement's dated
August 27th,
the installment amount is $731,
that means that this person
or this business has a principal balance
of $150,000.
Alright so we
scroll down a little bit it says here
"This is a reminder that beginning
June 15, 2021 a payment of $731
will be due on your SBA disaster loan."
okay. And down here, "Your loan is
in deferment status.
No payment amount is currently due,
however, interest
is accruing on the amount you have
received.
You may voluntarily make payments which
will reduce the amount of interest that
will accrue before your payments are
scheduled to begin.
Use the attached coupon and return
envelope to make a voluntary payment.
If you have any questions please call
this number." So
you can use this voucher to
make any payments or you can actually go
online and make it there, which is
probably the preferred way to do it.
So here, in this little box here, it says
"To make your payment online you go to
this website www.pay.gov."
So let's go check that out.
So here we go, at pay.gov
it says to look for the 1201 borrower
payment, so it's
pay it right here alright.
So right here an important thing to
note
EIDL loans have a 10-digit loan number.
EIDL loans were initiated by
completing an application through the
SBA website.
The loan is between the borrower and the SBA
only, and the another thing I want to
point out is that the loan number
is different from the application number
that you received
when you first applied for the loan. So
the loan number
would be on this statement right here.
And
if you haven't received a statement yet
it will be on the final documents that
you signed
when you first sign for the loan. The
contract that you signed, your loan
number should be on there as well.
So in order to get that you just want to
access the portal
that the SBA sent you using your
username and login
and you know you can view the documents
at the bottom there in the portal.
Alright so let's go to "continue to the
form"
Here we do the borrower
name,
let's make up this.
Okay, SBA loan number,
let's also make up an
account number and the payment amount,
let's say
$731 is the payment amount
alright. So let's hit "continue".
It's going to ask "You entered this much is
this okay?" Click OK.
And here you're going to want to pick
one of these options -
bank account might be the option with
the least amount of fees
so I'm just going to choose bank account.
Alright, payment day, I'm just going to
choose the earliest payment date.
Make sure this account holder name
matches what's on your actual checking
account
or savings account alright.
That's a Wells Fargo routing number and
then let's
make up an account there. So when you
enter your routing account number, double
check that,
make sure it's correct so it goes
through properly.
And then last thing you're going to do is hit
"review and submit
payment". Here it's going to go
to this, it's going to confirm your email
address, if you want to cc
this confirmation to anybody, and right here
is an authorization and disclosure
statement.
Basically saying "hey you authorize us
to take this payment from your checking
account"
if you agree you hit "submit payment"
right here,
and your payment will go through, and
you'll
go to the next screen which is the
confirmation screen
okay. And you'll get an email
with the confirmation as well.
So this is one way that you will be you
know,
making payments on it, or paying it back,
or what have you.
I definitely recommend you paying it
back sooner than later
because you just don't want to be under
that choke hold of the SBA
for far too long. I know the loan term is
30 years.
They can request financial statements or
what have you in the meantime,
they can check on your distribution, they
can check on your assets,
whatever it is they have to do, they can
do that in the meantime. So
that's why I recommend paying it back
sooner than later.
Some people have asked me if you can
just
give the money back. And if you want to,
this is how you do it
but, I would double check with the SBA
first to see what your payoff amount is
okay. Because your payoff amount because,
since you've been
accruing interest, even though you
haven't been making payments you've been
accruing interest.
So you want to figure out how much
interest you've accrued on top of your
principal
to make your payoff. So that's something
to contact the SBA for
is your payoff amount. Another thing to
keep in mind is that
the EIDL loan won't affect your PPP at
all.
However, the EIDL grant, if you did
receive one, will
affect the amount of forgiveness of your
PPP.
So that's just something to keep in mind.
Like I don't think they're going to
make you pay the grant back but
they're going to make you pay the PPP back,
a portion of it, if you received
the grant. People also ask me if I think
the EIDL loan
will be forgivable? And at this point I
have no reason to believe that it will
be
okay. I think there's been rumors, there's
been talks
but there's no bills that have been
introduced, not
nothing like that. So there's no solid
evidence or
solid reasoning for me to believe that
the EIDL loan will be forgivable.
Be sure to watch my other videos to see
how you can spend the EIDL loan. How you
can use it.
I have some great content on that and
also reach out in the comments below if
you have any questions about anything.
I'll do my best to answer them.
And if you're new here, I'd appreciate it
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this alright.
So that's all I've got. Take care for now
and stay safe.
you
