Key points to keep in mind in regards to your EIDL Loan

If you were the recipient of the EIDL (Economic Injury Disaster Loan) from the SBA,   there are some key points to keep in mind:

  • Per SBA guidelines you have to have a Hazard Insurance Liability policy on your business if your EIDL proceeds were $25,000 or more.
  • If your corporation received the EIDL loan, you should have meeting minutes, the loan number and an officer signatory authorizing the company to participate in the EIDL Loan.
  • Financial statements must be issued no later than three months after your fiscal year end to the SBA. The manner in which financial statements are presented is to be determined by the SBA.
  • For certain selected recipients, the SBA may want reviewed financial statements from a CPA.
  • Please keep in mind, even though the SBA states you are not giving a “personal guarantee,” your business assets are still held accountable if any awry situation were to arise.
  • In the event that you must sell/close your business or sell any of your business assets (excluding inventory), you must notify the SBA. Please see below for guidance.
  • You must first email the reconsideration department, the two emails are pdc.reconsideration@sba.gov and pdc.econs@sba.gov.
  • In the email body, you must include the EIN, Business name, officer of the business first and last name, and the loan number.
  • In the email body, please state whether you are selling you’re business, closing it down or selling any business assets other than inventory. 
  • If the owner of the business died please include the certificate of death for proof. 
  • Send the email out to the two emails listed above and the reconsideration department will reach out to you with further question.
  • If you are selling the business or any of the business assets, only send the email out when you are in contract with the purchaser of the business.

FAILURE TO NOTIFY THE SBA WILL RESULT IN POSSIBLE NONFORGIVENESS ON THE PPP LOAN, A POSSIBLE CALL ON THE EIDL LOAN AND THE IMMEDIATE CALL FOR FULL PAYMENT ON ANY OF THE TWO LOANS LISTED ABOVE.