Hi Everyone,
Our restaurant LLC just received the EIDL loan money. 3.75% interest. 30 year maturity date. Payments deferred for 12 months. On the SBA EIDL agreement, the section states you can use the loan proceeds for:
"Borrower will use all the proceeds of this Loan solely as working capital to alleviate economic injury caused by disaster occurring in the month of January 31, 2020 and continuing thereafter and to pay Uniform Commercial Code (UCC) lien filing fees and a third-party UCC handling charge of $100 which will be deducted from the Loan amount stated above."
This is vague. I would like to use the money to pay down the principal of a commercial bank loan the LLC has. It would really help the business if this was possible.
Does anyone know if this would be allowed or not?
Thank you.
Our restaurant LLC just received the EIDL loan money. 3.75% interest. 30 year maturity date. Payments deferred for 12 months. On the SBA EIDL agreement, the section states you can use the loan proceeds for:
"Borrower will use all the proceeds of this Loan solely as working capital to alleviate economic injury caused by disaster occurring in the month of January 31, 2020 and continuing thereafter and to pay Uniform Commercial Code (UCC) lien filing fees and a third-party UCC handling charge of $100 which will be deducted from the Loan amount stated above."
This is vague. I would like to use the money to pay down the principal of a commercial bank loan the LLC has. It would really help the business if this was possible.
Does anyone know if this would be allowed or not?
Thank you.