I paid off my EIDL loan! Walk through a $20,000 repayment on pay.gov of federal EIDL loan
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- Опубліковано 5 лют 2025
- Did you get an EIDL loan? Has it been sitting untouched for a while, and you aren't sure if you want to pay it back or not? Well, I decided that I didn't need by EIDL loan, so I decided to pay it back to the SBA and stop accruing interest on the money.
You should know the EIDL loan IS NOT FORGIVABLE. It must be repaid in the 30 year schedule or earlier. The interest rate is 3.75%. All payments are deferred for a year, but I didn't want to wait a year to repay this thing.
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Disclaimer: This video is intended for educational purposes and should not be taken as legal or tax advice. You should consult with your financial professionals about your unique financial situation before acting on anything discussed in these videos. Clara CFO Group, LLC is providing educational content to help small business owners become more aware of certain issues and topics, but we cannot give blanket advice to a broad audience. Clara CFO Group, LLC or its members cannot be held liable for any use or misuse of this content.
Always so helpful!
So glad to hear it!
Thank you for guiding me through difficult time. I called the agent at SBA that you mentioned. I am fortunate enough that I paid off balance today. Thank you.
congratulations!
Thank you 🙏
you are very welcome! hope it help!
Why the heck would someone pay back the full amount now when the inflation is over 10% and your interest rate is 3.75% over 30 years???
Because you are beholden to usage rules set by the SBA. Not holding government funds that aren't needed = freedom to do whatever you want in your business.
you have to pay the full amount of interest no matter of early pay off
🤔 not exactly sure what you mean?
Always the most incredible content,
I need to raise my game so that I can use more of your excellent Advise.
Thanks so much for being here!
Hi Clara, I have a question, if you pay down your loan before the deferment period ends (not entirely) will it lower your payment?
No, your payment will not change. It will lower your principal though, so you will end up paying off the loan faster.
I was just approved and the customer service rep said there is no early pay off ! What I mean is you cannot pay off early to avoid interest ! Is this true ? From this video I’m thinking it’s true and if that’s the case I would rather not accept the loan ! Please help
Are you sure you are looking at an EIDL loan? You can definitely prepay an EIDL. Maybe they meant no prepayment penalty?
you have to pay the vig no matter if you pay it of early
Question: does SBA send some kind of formal documentation acknowledging payoff and case closure?
I did it wrong..i just paid the amount tgat was lent to me..without any interest...will they send me a bill for the interest?
I’m thinking about paying a 50% of my loan because I don’t need it, should I ?
Hi Jorge, only you can make that decision for yourself, but maybe watch this video to help you calculate the cost of holding that loan: ua-cam.com/video/CH5fOjfp71M/v-deo.html
Thanks for the info. I actually about to take the loan I thought it’s good to know how to pay if I take it
Yes! Glad this helps!
I am confused how you can return the EIDL funds legally by SBA regulations. It says on what is allowed and not allowed that none of the EIDL funds can be used for 'pre-payment of business debt' towards federal loans (SBA). It specifically says SBA loans. Would you mind commenting how we are allowed to do this?
They don't want you paying off other sba loans with it. There's no prepayment penalty in the eidl paperwork.
Hi, Can I do a tax write off on my interest?
Yes, interest expense on these loans are tax deductible!
Does this E I DL loan affect your approval for a mortgage loan?
are they going to send out the receipt of paid in full?
I didn't! But you can call them and get confirmation that it has been paid off!
Great advice in this video. I am thinking of paying half of my loan off. In your experience, is the SBA amenable to adjusting the monthly payment amount, or are you pretty much locked into the original monthly payment amount. Thank you!
I've been attempting to find an answer to this query for a while, and still have no clue. Anybody? anybody? Beuhler????
@@jaykirschner1 have you found an answer?
Have you found an answer?
So those who think the EIDL loan will not be forgiven are dreaming?
Speaking of paying off....wondering we can use the EDIL Advance (the top up to 10K) to pay off the EDIL Loan.
I did
Hi my question is related to SBA Eidl loan.
Can a asylee get SBA Eidl grant and loan?
For the interaction...
thanks!
??? Still uncertain times, plus a recession for two years after the SARS-COV-2 Pandemic. Maybe the interrest won't even match inflation, resulting in deflated value. You are so smart and the best on youtube (the real thing, no click bait ever), I listen to what you have to say. But why pay back so soon? But of course I keep 4-6 months of food too lol. The pandemic over maybe next year in Spring with 1 yr recession at min (my prediction). But ofcourse I am not an accountant you are.
It's a good question JP. The important part here is that I looked at my own business and determined that I did not need it. My business is doing well, and I do NOT want to take on debt to save it if it came to that. Taking and paying back loans is a very individual decision! Just because I did, doesn't mean anyone else has to. But when you are ready, I am showing you how :)
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