The Economic Injury Disaster Loan (EDIL) advance or EDIL Grant is free money from the federal government to help offset the financial hardships due to the COVID-19 pandemic. This loan, while backed by the Small Business Administration (SBA) is also funded by the federal government for the economic hardships caused by the current pandemic. Small business owners will need to apply for the loan in order to get the advance. However, they can pay off the loan immediately once it is deposited with no pre-payment penalty. If this sounds pretty clear cut but you have been asked to repay the loan, you are not alone.
How EDIL Works
The way the EDIL works is the “advance” is deposited first and then the actual loan comes afterwards. The EDIL Loan is the actual interest paid potion of the funds you will be receiving. This loan notoriously is attached to an EIDL advance or EIDL grant as some are calling it and this grant has been made available to business owners around the United States via checking account deposits and does not have to be paid back. However, the actual loan portion does, at 3.75% interest. Your experts at CPA Accounting & Tax Services have heard from several clients and from one of our very own CPA’s that the SBAD EIDL 301 that was deposited into their bank accounts was required to be paid back just two months after it was deposited. The clients were notified via email that they needed to pay it back immediately, which has caught many off guard. We don’t want this to happen to you and can help you through this complicated process.
How We Can Help
Navigating the Economic Injury Disaster Loan process can be difficult. Contact the professionals at CPA Accounting & Tax Services to help guide you through tax season and beyond. We specialize in Business Accounting Services, Individual Tax Services, International Tax Services and Tax Resolution Services. We have offices in Orlando, Florida and service clients worldwide. Find out how we can serve all of your accounting needs by contacting us today: www.cpaaccounting.biz