Premium Merchant Funding
EIDL – Maximum loan amount increased to $2,000,000
Product:
Loan directly from SBA that must be repaid; low-interest, fixed-rate, long-term loan to help overcome the effects of the pandemic by providing working capital to meet operating expenses
Uses of Proceeds:
Working capital to make regular payments for operating expenses, including payroll, rent/mortgage, utilities, and other ordinary business expenses, and to pay business debt incurred at any time (past, present, or future)
Maximum Loan Amount: $2 million.
Note: SBA began approving loans greater than $500,000 on October 8, 2021.
Loan Term: 30 years
Interest Rate:
Businesses: 3.75% fixed
Private nonprofit organizations: 2.75% fixed
Payment Deferment: Payments are deferred for the first 2 years (during which interest will accrue), and payments of principal and interest are made over the remaining 28 years. No penalty for prepayment.