COVID-19 EIDL Loan Early: A Walkthrough

How To Pay Off SBA COVID-19 EIDL Loan Early: A Walkthrough

In March, Congress designed two loan programs to help small businesses and the self-employed mitigate the economic impact of the COVID-19 pandemic: the Economic Injury Disaster Loan (EIDL) and the Payment Check Protection Program (PPP). Because we were not sure whether we would get both loans, we both applied (see previous post-COVID-19 Car Loans: Where to Apply). In the end, we both got a loan after a long application process – the EIDL loan directly through the SBA and the PPP loan through a bank.

Our activities have stabilized somewhat in recent months. Sales in April were 65% lower than in April last year. In June it was only 47% smaller. It’s still bad, but the trend is increasing. That is why we have decided to repay the EIDL loan early.

EIDL loan cannot be withdrawn

The EIDL loan is a thirty-year loan at an interest rate of 3.75%. The first year does not have to be paid, but there is interest. Except for the EIDL grant ($1,000 per employee up to $10,000), the EIDL loan is not overlooked.

If you no longer need the money, it is best to pay it off first to stop the interest. There is no prepayment penalty. If no payments are due yet, the SBA will not send you a statement or proof of payment. If you want to repay the loan, it is not clear how much you have to pay or where you should send the loan. I will show you what to do if you have received the EIDL loan and want to repay it early or repay part of the loan to lower your interest.

SBA Loan Number

First, you need the SBA loan number for the EIDL loan. You can find this ten-digit number in the loan and authorization agreement (LA&A) that you have signed electronically with the SBA. It’s at the top of page 2 and also in the top left corner of every page in the document.


Therefore, you must register with the SBA’s Capital Access Financial System (CAFS). This is similar to the internet banking website if you have a loan from a bank. If you experience problems with the online registration, please report this to the SBA Emergency Center.

the amount to be paid

After successfully registering for access, log in to CAFS with the user ID and password you created. The system sends a unique PIN to your email address or mobile phone for two-factor authentication. After logging in, click Creditors in the blue bar above and then Creditors.

You will see a list of your loans. After receipt of the EIDL loan and PPP loan, the EIDL loan can be recognized by the loan number, loan amount, or loan form (“DCI”). Click on the EIDL loan. You will see your loan details. Read the balance of payments Monday through Thursday when you repay the loan.

SBA Disaster Service Center

If you are having trouble logging into CAFS to see your balance of payments and loan status, you can also call the SBA emergency services. I didn’t call them because it could end up in CAFS. I found the information on the SBA website.

The SBA operates two emergency loan centers, one in Birmingham, AL, and one in El Paso, TX. Your loan can be provided to one of the two centers. Or maybe the center can report the balance of payments and verify that the loan has been repaid in full. The lending service center also accepts telephone payments.

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