EIDL SBA Loan advise

[Neel Shah]

Hello BP,

I got message from EIDL today stating: "Your SBA Application No. *** is ready for the next step. Create your SBA Economic Injury Disaster Loan Portal account to provide additional details or requested documents."

I got $1000 grant a few weeks ago. I am not planning on applying for an actual EIDL LOAN any longer (I received needed funds through other means). I am sure I am not the only one in this boat. did anyone else get this email. are you ignoring it? I don't want or need any more of EIDL money, and I certainly have wasted enough time with this kind of paperwork...

Wondering on how I should handle this.

Any feedback/experience with this is appreciated.

Thanks

[Salvatore Trapani]

@Benjamin A Ersing
I have not accepted the loan, just yet.
I received an email from an "Attorney Advisor" from SBA requesting an update on whether or not I would be signing/accepting loan docs.
Since I had a direct person to ask, I questioned the use of the funds and certain terms in reference to sale of company assets.

I'm still contemplating the use of these funds.

Here was the response I received:

"EIDL funds usage is limited to the daily operating expenses of business and aren’t for investment or improvement purposes. Regarding payroll, you may use funds to compensate those individuals for their services in the ordinary course of business.

The SBA UCC filing reaches all business assets to the value of the loan. It’s a general, blanket UCC filing that doesn’t prohibit the acquiring or transfer of assets in the ordinary course of business.

A loan amount of $25,000 or less is unsecured, and removes the Security Agreement and UCC filing, but loan proceeds usage requirements remain in place."