Source
r/EIDL•
electric29

Hallelujah, EIDL increase funded!

It wasn't as bad as I thought it would be.
Got the BB around the middle of August. It first showed us as eligible for $500K total (we already had $100K loan so in reality, a $400K increase). So we applied. This is on the same application as our original loan.
Then a few weeks later, I checked in again and they had raised it to $730K, oddly. So we tried to apply for that too. But then we got a note that the needed us to do it again on a second loan number, and it went back down to $500K total. Fine!
I did have to speak with a loan officer breifly and send her our tax returns by email as the portal just had a hard time taking my PDF.
We signed the docs on Friday and got the cash today (Tuesday).

Posted Sep 28, 2021, 4:44 PM UTC

2414
Scorpio14534•

Congratulations! 👏🏻🎉

3
klewis0423•

Congrats

1
Pandasoup88•

wow...that is great. we have been waiting for docs since august. congrats!

3
electric29OP•

It can happen!

2
rsolarrr33 Series •

So you have a 500k loan and a second 230k loan?

2
electric29OP•

No, we first got a 100K loan and then an increase of another 400K. They accidentally offered us 730K for a bit on the increase but then they walked it back.

3
carbon370z•

Congratulations but, doesn't it make you queasy knowing that you'll have to pay all that back to the government?

2
electric29OP•

Not one bit. Our main problem right now is a lack of money for inventory and hiring. We have more customers than we can handle with the resources we have. Having this cash means we can create at least three full time jobs with benefits, and grow our sales by 200% (back to where it was in 2015 before the disastrous 2016 election and its consequences).

2
ocams-razor•

great outlook, as hard as it has been to get to the funding stage it is critical to remember that that was actually not the job, a ton of work for certain but the job has been waiting and all the real work is still right there

2
electric29OP•

Oh believe me I know, our understaffing the past couple of years means I am all the admin, accounting, purchasing and shipping staff. The job goes on and on and then doing all of this money chasing on top of it is exhausting.

2
Northstar702•

Yes anyone accepting such an obligation should feel the gravity of it. However "dry powder" at 3.75% is so cheap as to be hard to refuse, so long as it's not squandered on magnanimity or risky bets. That's going to be hard for a lot of owners whose business isn't a winner yet, and they will get their asses kicked in the long run. That road ends in bankruptcy and/or financial ruin.

2
Geniifarmer•

Can’t speak for op, but in my case we already have the debt in the form of accounts payable to vendors, and are paying them each the current months bill plus 18% apr interest on all of the past due balance, so instead of 18% it’s 3.75%, and the principle can be realistically paid back with that term. It’s a life preserver; I know we’re still in the water- we’ll just have to swim a little harder to get out, but at least we’re staying afloat.

2
Northstar702•

Lower cost debt consolidation is a great use of this loan. I hope it's not choosing between hanging and firing squad for you and that the fundamentals of your business are strong (positive cash flow every month). The comment about getting into trouble has to do with the excess amounts borrowed above and beyond obviously productive and known uses like yours.

2
Brilliant-Society-73•

How did u get the increase i got the 10k n the 5 k but i need an increase and i cant put in for one there is no blue tab im not eligible maybe idk do u mind me i file allot in taxes like 100,000 what do u file more than that.. How do they decide the size loan ??

1