Can you get a 7(a) or 504 loan while you owe an EIDL?
Short answer
Yes, if the Economic Injury Disaster Loan (EIDL) is current. SOP 50 10 8.1 bars applicants with delinquent federal debt, meaning unpaid 90 days past the due date. A current EIDL is not on its list of bars, though the payment counts in your cash flow.
Yes, if the EIDL is current. SOP 50 10 8.1 does not list a current EIDL as a bar. The EIDL-related bars are delinquent federal debt and prior losses (Sec. A, Ch. 1, Para. E; Para. E begins p. 18).
Delinquent federal debt
You are ineligible for a 7(a) or 504 loan if you or a guarantor owes a nontax federal debt in delinquent status. A debt is delinquent when it has not been paid within 90 days of its due date.
A debt is not delinquent in several cases. You cured it on terms the agency accepted. You are paying as agreed under a satisfactory written repayment agreement. Or the debt is in an administrative or judicial appeal.
How lenders check
SBA lenders must check CAIVRS, the federal Credit Alert Verification Reporting System, and keep the result in the file. A business with an existing 7(a) or 504 loan that is not current is also ineligible (Para. E).
Your cash flow
A 504 Certified Development Company (CDC) calculates debt service on combined debt after the transaction (Sec. C, Ch. 1, Para. E.1.d). Your schedule of debts lists every outstanding loan (Para. F.2).
Liens
SOP App. 12 (p. 352) lists COVIDEIDLServicing@sba.gov for general COVID EIDL questions, including subordination. The SOP does not state a standard for when SBA will subordinate an EIDL lien. Ask early if a new lender needs a lien ahead of your EIDL.
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Tell us the amount you need and what it is for. We refer you to lenders that may fund businesses like yours, and it costs you nothing.
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