AmiSight 6/23: Whoops, You Need to Tell Your Loan Officer What You Did with Your EIDL Funds
Remember those EIDL loans that seemed too good to be true, and many entrepreneurs grabbed them irrespective of economic need? Well, they are starting to catch up with folks in a new way.
As we review loan requests, a new question we have to ask is if you got EIDL money and what you did with it. Did you use it for allowed expenses? If you have extra money sitting in an account that you haven't used yet, what's your plan for it, and are the proposed uses allowed under the program?
We are seeing many folks looking for money for growth or an acquisition who took a significant EIDL loan over the past two years. Now, as we narrate our story for the loan officers, we need to know what the money was used for? In many instances, we are sure the loan officers will want evidence to back it up. This is an essential issue that business owners must pay attention to. You don’t know when the next time you will want a loan is. And this issue will come up.