The SBA finally shut down the Covid-19 EIDL program last week after the program officially ran out of money. As of the most recent SBA report, the numbers for the program are staggering: almost 4,000,000 loans were approved for over $393 B.
So now what? EIDL borrowers beware – if your loan was for over $25K, the government filed a lien against your business. You will have to deal with this issue when it comes time to get a new loan, sell your business or buy out a partner.
Here is the issue: the SBA does not have the infrastructure in place or clear guidelines for dealing with these issues. It will take time for the systems to be built and the rules to be precise. I suspect that the phrase EIDL will be in our vocabulary for a long time.
If you received an EIDL, you must think through this lien issue as you consider how to use your money and what the future might hold for you.