If so it may be an acceptable use. Can I use my loan to pay down personal credit card debt that which was used for business purchases? Would I be able to use the EIDL to do this? If you apply for a credit card, the lender may use a different credit score when considering your application for credit. Finally, PPP loans can be much larger than EIDL ones. Yes — you just can’t use both for the same purpose, says Todd McCracken, the president of the National Small Business Association. The funds can not be used to replace lost sales, expand your business, or to pay down long-term debt. Most businesses have some debt, but if your loan terms are unreasonable and you can no longer meet the terms or afford the payments, you’re faced with the need to refinance the debt. I have approx. The funds can be used as working capital to pay bills, fixed debts, payroll, and accounts payable. Can I use EIDL loan money to pay credit card debt? You may also make monthly payments on outstanding loans (both the interest and principal are acceptable). Can I use an EIDL loan to pay taxes? Yes, for eligible costs, utility bill etc. Susan Guillory is the President of Egg Marketing, a content marketing firm based in San Diego. Susan Guillory. CreditCards.com credit ranges are derived from FICO® Score 8, which is one of many different types of credit scores. Can a business get both EIDL and PPP? 10k in credit card debt that I'm struggling to make payments on, as well as a fixed cash advance loan with a term of 5 years (that I can pay off early). However we don’t speak for the SBA. EIDL loan amounts will be based on the size and type of the business, and loan proceeds can be used to pay fixed debts, payroll, accounts payable, and other bills that the business owner would have been able to pay had the disaster not occurred. Generally credit card debt is considered short term debt, however. Would you have been able to pay that debt had the disaster not occurred? You can also apply for an EIDL in addition to a PPP loan provided you meet the requirements and will use the loan proceeds for something other than payroll required by the PPP. I understand that I will pay an additional $1.00 per month for bank processing fees included in the dues amounts in this application. If you charge your day-to-day purchases to a credit card, it is acceptable to pay the monthly credit card balance with EIDL funds. The . About the Author. Paycheck Protection Program. Business owners can use the SBA 7(a) loan to get better terms on existing debts or business mortgages. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. You just cannot use EIDL funds to pay o" … The SBA 7(a) loan is an excellent tool for improving your business's financial standing. Information for Monthly Credit Card Option Applicants: By submitting a monthly credit card option application, I understand that PPA will charge my credit card monthly. Tim – The Standard Operating Procedures state the you cannot use EIDL for refinancing long term debt. The maximum PPP loan is $10 million, whereas the biggest EIDL loan is just $2 million. The interest rate for an EIDL is 3.75% for small businesses and 2.75% for … How much EIDL loan money can I get? Please keep in mind this information is changing rapidly and is … For example, if a borrower has a bill that cannot be paid due to the economic impact of the pandemic, and that bill is typically auto-deducted from a credit card account, the borrower can make a credit card payment for that amount with EIDL funds that have been deposited into a checking account. 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