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Writer's pictureAmi Kassar

AmiSight 10/2: Never Borrow Money Without a Sound Plan to Pay It Back

These days, I hear many disheartening stories of entrepreneurs who took EIDL loans during COVID, and now, as payments are coming due, they're unsure where the money went and how to pay back the loans.

 

The situation is particularly sad because the government handed out money like candy without requiring proof of economic injury or the borrower's ability to cash flow the loan and pay it back. Now, many are left with IOUs to the US Government with personal guarantees that are going to cripple them and their businesses for a long time.

 

While the government is to blame, there is plenty to go around. When you borrow money, please plan to pay it back. Be confident that you will make more money than the interest will cost you, and discipline is more important than ever!!!


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