# EIDL Loan Approved. Take Money & Run or JUST Run?



## DeadHeadDriver (Feb 7, 2020)

For sake of discussion the scenario is that you applied for the Economic Injury Disaster Loan and eventually were approved. Its 3.75% Interest, 30-years, & loan cannot be repaid until after 12 months with *none* of money eligible for forgiveness.









Own reliable car, having emergency fund, & living situation is temporarily stable. Im just a few annoying small bills from being debt-free, and have no love for debt--short of a mortgage on a home. I have fallen into the trap of Gig work being my main source of income over the last few years, thus my earning power is currently in Time-Out due to having a front-line healthcare worker in home where i rent a room.

The Good: EIDL offered me loan up to $3,500. 
The Bad: WTF can be done with $3,500 without large amount of principal risk?

_-__Education fund_? (Already have stale/old B.A. from solid school) Likely would get $0 financial aid, and w/Tuition, Fees, Books, etc., would likely use-up full $3,500 for just 1 or 2 semesters at community college to re-train for new work. (If you know of a certification or skill that has good job outlook please Do Tell)

_-Investment fund?_ Lets acknowledge i have NO VALID REASON to be investing money right now and have low risk tolerance----under normal circumstances. Let's also acknowledge i am DESPERATE to earn cash, thus all my normal safe-guards are suspended. Time-horizon for funds invested is painfully short 13 months, due to repayment in-full of original principal. (I am expecting a $2,000 loss of $3,000 original investment in this scenario) So any funds deployed have to be rather liquid, thus almost eliminating obvious investment vehciles.

_Business Start-up fund?_ Willing to 'Buy-a-Job' with investment due to tax-deductions as long as job was a cash-flow generator. Feel free to post micro-business ideas or PM if not comfortable posting.

_Other?_ Sorry, criminal enterprises are not considered. ( & despite NOT being criminal, Crypto trading is No Go also) Any money-making ideas big or small welcome here.

--Appreciate all your suggestions. Maybe together we can crowd-source a replicate-able path forward for all of us....


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## JaredJ (Aug 7, 2015)

If you have to ask for financial guidance on $3500 loan you probably shouldn't take it.


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## Atom guy (Jul 27, 2016)

I'd pay off the debts, and bank the rest. Are you able to collect unemployment? If so, collecting probably pays more than the gig work, so maybe you could also bank any extra unemployment over what you usually earn.


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## Seamus (Jun 21, 2018)

If you use the money to pay off debt then you are _incurring _debt to _reduce_ debt which makes no sense. Forget any discussion of "lower interest rate". Just pay off debt period.

People should avoid all debt possible except as a last resort so if you don't need the money don't take it. IMHO


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## Atom guy (Jul 27, 2016)

Seamus said:


> If you use the money to pay off debt then you are _incurring _debt to _reduce_ debt which makes no sense. Forget any discussion of "lower interest rate". Just pay off debt period.
> 
> People should avoid all debt possible except as a last resort so if you don't need the money don't take it. IMHO


Saying "people should avoid debt" to someone who ALREADY has debt makes no sense. If the EIDL is at a lower interest rate than the existing debt, then yes it makes sense to take the EIDL to pay off the higher interest rate debt. Obviously the idea would be to not take on any new debts after that.


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## Poopy54 (Sep 6, 2016)

It says on that page that EIDL loans are only for Agricultural relief and nothing other than that.
*At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received.*


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## SHalester (Aug 25, 2019)

...start planning on how you will pay the loan back, with interest before you decide 'spend' the funds on anything but recurring monthly bills.


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## Atom guy (Jul 27, 2016)

Poopy54 said:


> It says on that page that EIDL loans are only for Agricultural relief and nothing other than that.
> *At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received.*


Yes, that's the only type of application they are accepting NOW, but millions of people have already applied over the last 2 months. I just got my offer after applying on 4/1.



SHalester said:


> ...start planning on how you will pay the loan back, with interest before you decide 'spend' the funds on anything but recurring monthly bills.


Yeah, the worst thing to do is go on a stupid spending spree. Pay down high interest debts, and cover your monthly bills, that's it. Or even better, just bank it for now just in case


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## DeadHeadDriver (Feb 7, 2020)

Atom guy said:


> Or even better, just bank it for now just in case


*$35 Fee= $3,500 Govt. sponsored Super Personal Emergency Fund. 
Place funds in Credit Union savings acct.  (but near zero risk of Principal :smiles.....

-or-
----Maybe invest $3500 in Vanguard for 13 months. but Expecting to only have aprox. $1000 after funds withdrawal. (I kick-in $2500+$35)


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## Seamus (Jun 21, 2018)

[/QUOTE]
Saying "people should avoid debt" to someone who ALREADY has debt makes no sense.
[/QUOTE]
We can agree to disagree on that. The goal should be starting "now" pay off existing debt over everything else. Borrowing money and using credit Is a nasty habit that needs to be broken if you want true financial freedom. Most don't understand the logic, doesn't matter to me.

Debt sucks your wealth away under the radar screen and most don't even realize the difference in their life . Many think just like you about refinancing, lowering interest, etc. etc.. Not exchanging debt for debt, not focusing on interest-rate, but actually focused on reducing and eliminating debt. It's the only way to break the debt crushing habit that most live in.

We can agree to disagree.


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## Tenderloin (Sep 5, 2016)

Seamus said:


> We can agree to disagree on that. The goal should be starting "now" pay off existing debt over everything else. Borrowing money and using credit Is a nasty habit that needs to be broken if you want true financial freedom. Most don't understand the logic, doesn't matter to me.
> 
> Debt sucks your wealth away under the radar screen and most don't even realize the difference in their life . Many think just like you about refinancing, lowering interest, etc. etc.. Not exchanging debt for debt, not focusing on interest-rate, but actually focused on reducing and eliminating debt. It's the only way to break the debt crushing habit that most live in.
> 
> We can agree to disagree.


what if a you take money from the system and convert it into a cold cash?


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## TheDevilisaParttimer (Jan 2, 2019)

Are their fees or penalties for paying loan off early?


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## UberBastid (Oct 1, 2016)

Don't lie on any applications for anything.
Be sure to be accurate.

Take any money the gov't offers,
update or gain new skills,
wait till the China attack on the civilized world ends,
get a decent job.


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## GIGorJOB (Feb 29, 2020)

I could be totally wrong and off base here but I believe the intent for the program is for businesses, including SP/IC, that were impacted as a result of Covid-19. Although it's a loan and most people do intend to pay it back, you still would not want to potentially fall into a category of misappropriating the funds, no matter how small.

So I will assume you are suggesting you are going to pay yourself with these funds to keep you afloat and if that leads to helping you in other areas later on, from what are now your own funds and/or savings, and then, what should/could you do with those funds?

If it were me, I would first consider what other assistance you may be, or may consider, applying for or receiving, if any. No expert in these programs but if also considering the PPP or unemployment, then the EIDL loan is going to be best used for other expenses unrelated to pay and/or payroll IMO.

You may have already worked through this part, hence the posting the thread in the first place but figured I would throw it out there anyway, just in case.


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## sellkatsell44 (Oct 25, 2015)

Seamus said:


> If you use the money to pay off debt then you are _incurring _debt to _reduce_ debt which makes no sense. Forget any discussion of "lower interest rate". Just pay off debt period.
> 
> People should avoid all debt possible except as a last resort so if you don't need the money don't take it. IMHO


If someone takes the loan @ 3.75%, it's a lot lower than if they held cc debt at 15-29.99% depending on the issuer.

so it's one way to Pay off debt faster.

however if you have decent credit you can get a lower rate than that, like less than 50 basis points easily low.


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## DeadHeadDriver (Feb 7, 2020)

TheDevilisaParttimer said:


> Are their fees or penalties for paying loan off early?


Unfortunately they DO NOT allow for early repayment, cannot repay before 12 months. If take it i have to warehouse it, prefer little or no risk. (& thus no reward; other than security of funds on-hand)

Reconsidering my Vanguard idea from before. I could foresee greater plummet in Dow500 then my 70% worst-case estimate. _THEN _would be good time invest in Dow. Sure feels like Corporate boards are okay with Magic Happy Talk about a rebounding economy this fall.


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## oldfart (Dec 22, 2017)

Seamus said:


> If you use the money to pay off debt then you are _incurring _debt to _reduce_ debt which makes no sense. Forget any discussion of "lower interest rate". Just pay off debt period.
> 
> People should avoid all debt possible except as a last resort so if you don't need the money don't take it. IMHO


If you pay off high interest debt with low interest debt....thats a good thing


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## Johnny Mnemonic (Sep 24, 2019)

2,856 crunchy tacos!











__
https://www.reddit.com/r/tacobell/comments/fuwqhs



DeadHeadDriver said:


> *$35 Fee= $3,500 Govt. sponsored Super Personal Emergency Fund.


It's not an emergency fund any more than my American Express card is an emergency fund. It's a line of credit.



Atom guy said:


> Saying "people should avoid debt" to someone who ALREADY has debt makes no sense.


"People with debt should avoid adding more debt."

Feel better?


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## sellkatsell44 (Oct 25, 2015)

I prefer sandwiches










If u know u know.


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## jonsnownothing (May 10, 2019)

DeadHeadDriver said:


> Unfortunately they DO NOT allow for early repayment, cannot repay before 12 months. If take it i have to warehouse it, prefer little or no risk. (& thus no reward; other than security of funds on-hand)
> 
> Reconsidering my Vanguard idea from before. I could foresee greater plummet in Dow500 then my 70% worst-case estimate. _THEN _would be good time invest in Dow. Sure feels like Corporate boards are okay with Magic Happy Talk about a rebounding economy this fall.


but there's also no prepayment penalty. i guess the interests will accrue for the 12 months and then you can pay it all off including the interests after the 12 months


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## TheDevilisaParttimer (Jan 2, 2019)

DeadHeadDriver said:


> Unfortunately they DO NOT allow for early repayment, cannot repay before 12 months. If take it i have to warehouse it, prefer little or no risk. (& thus no reward; other than security of funds on-hand)
> 
> Reconsidering my Vanguard idea from before. I could foresee greater plummet in Dow500 then my 70% worst-case estimate. _THEN _would be good time invest in Dow. Sure feels like Corporate boards are okay with Magic Happy Talk about a rebounding economy this fall.


A 30 year loan on $3.5k at 3.75 interest without an option for early repayment or if interest baked into all installments is absolutely insane.

Do not walk, run from this loan!

That's 30 years worth of 3.75% compounding interest. Run, run, run &#127939;‍♂


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## jonsnownothing (May 10, 2019)

TheDevilisaParttimer said:


> A 30 year loan on $3.5k at 3.75 interest without an option for early repayment or if interest baked into all installments is absolutely insane.
> 
> Do not walk, run from this loan!
> 
> That's 30 years worth of 3.75% compounding interest. Run, run, run &#127939;‍♂


there's no prepayment penalty, so just pay it off right away, don't need to wait 'til 30 years


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## TheDevilisaParttimer (Jan 2, 2019)

jonsnownothing said:


> there's no prepayment penalty, so just pay it off right away, don't need to wait 'til 30 years


He said they don't allow early repayment.


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## jonsnownothing (May 10, 2019)

TheDevilisaParttimer said:


> He said they don't allow early repayment.



Low fixed interest rates: 3.75% or 2.75% for non-profits
Long-term repayment of up to 30 years
No prepayment penalties
Payments deferred (interest accrues)

https://www.nav.com/blog/frequently...sba-disaster-loans-due-to-coronavirus-582699/


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## Seamus (Jun 21, 2018)

Tenderloin said:


> what if a you take money from the system and convert it into a cold cash?


Any loan you could call cold cash if you wanted. If you have to pay it back it's debt.



oldfart said:


> If you pay off high interest debt with low interest debt....thats a good thing


That's traditional thinking, restructuring debt. Better to change your mindset to no debt, and the debt you already have worked two jobs if you have to to pay it off so you have no debt. Just my opinion I am now debt-free and two years ago I never would have thought I could have been. It's a change in mentality .

It may sound like a good thing but paying off that compounded interest over 30 years is not a good thing even if it's a lower rate than outstanding credit card debt. I understand the mentality that the lower the interest the better, but it's even better to just pay off the debt you have. It takes sacrifice and putting off extras but it can be done.


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## akwunomy (Jan 12, 2020)

JaredJ said:


> If you have to ask for financial guidance on $3500 loan you probably shouldn't take it.


Maybe he should take a vacation to Hawaii and spend the money....


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## Seamus (Jun 21, 2018)

sellkatsell44 said:


> If someone takes the loan @ 3.75%, it's a lot lower than if they held cc debt at 15-29.99% depending on the issuer.
> 
> so it's one way to Pay off debt faster.
> 
> however if you have decent credit you can get a lower rate than that, like less than 50 basis points easily low.


I wish I could make every young person understand the damage that debt does to you. Don't even bother focusing on 29% credit card debt versus 3.75 loan consolidation debt or debt restructure. It's a mentality that assumes you're going to continue paying 29% interest and continue to be in debt. No eat all your meals home, cut out all extras, pay off that debt quickly. The only debt anyone should be incurring is a mortgage everything else is just stealing your wealth.

It's more of a mentality change than anything. We are raised to think we must incur debt. The formula is simple do whatever it takes to pay off current debt, once current debt is paid off put 3 to 6 months savings in the bank and then cash flow everything. You will be totally amazed at how much more of your money you'll keep.

I have a lifetime of Investments and property for my retirement, if I never make another nickel I am set for a very early retirement. I have absolutely no debt. I have nice things Mercedes, golf club, nice boat And take nice vacations. All that is a result of debt free living. Even at that I still work two jobs in order to cash flow everything. One job is for living and one job is for my daughter's medical school. Few more years and I will retire until then I'm fine working two jobs to incur no more debt. I have put four kids through college with no debt and they have no student loans. It takes hard work and sacrifice but the rewards are great.

I know many will not understand because it's not the way our society teaches us to manage our personal money. To each their own I know what has worked for me and I'm quite comfortable. I wish I discovered the debt free key to financial independence when I was your age. I would have even more.


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## oldfart (Dec 22, 2017)

Johnny Mnemonic said:


> 2,856 crunchy tacos!
> 
> View attachment 465640
> 
> ...


No I dont feel better, You are giving advice without knowing the whole story, I agree the op probably shouldnt buy Tacos with the money, But what if he bought plants and seeds and topsoil and started a garden to grow some food, or if he buys some tools and starts a handyman business, or paid down his mortgage

debt is not a bad thing in and of itself
It depends on how you intend to use it, And having a credit line available to you is absolutely an emergency fund

I may be unusual in this regard and Im not suggesting what I would do is good advice for anyone, but I would always rather use OPM (other peoples money) for a risky venture or to buy a depreciating asset

I havent been approved for an EIDL loan but if I get appoved Im planning to put it toward a real estate purchase to get started on a BRRRR. program (Buy, Renovate, Rent, Refinance, Repeat)


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## jonsnownothing (May 10, 2019)

Seamus said:


> I wish I could make every young person understand the damage that debt does to you. Don't even bother focusing on 29% credit card debt versus 3.75 loan consolidation debt or debt restructure. It's a mentality that assumes you're going to continue paying 29% interest and continue to be in debt. No eat all your meals home, cut out all extras, pay off that debt quickly. The only debt anyone should be incurring is a mortgage everything else is just stealing your wealth.
> 
> It's more of a mentality change than anything. We are raised to think we must incur debt. The formula is simple do whatever it takes to pay off current debt, once current debt is paid off put 3 to 6 months savings in the bank and then cash flow everything. You will be totally amazed at how much more of your money you'll keep.
> 
> ...


Going to be tough to keep up with the Joneses with no debt...


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## touberornottouber (Aug 12, 2016)

I don't think you are technically approved until you accept it, get loan documents to sign online, and then are funded. It looks more like you just got what is referred to as "portal access". If you approve it, typically within about 3-5 business days you will get accepted or denied for real.

After you hit accept they will do a credit check (if they haven't already) and then a loan officer will look at it for approval. You need over a 570 to be approved. Note they also check criminal background. A felony will always get you denied. A misdemeanor could get you denied if recent enough.


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## UberBastid (Oct 1, 2016)

oldfart said:


> I havent been approved for an EIDL loan but if I get appoved Im planning to put it toward a real estate purchase to get started on a BRRRR. program (Buy, Renovate, Rent, Refinance, Repeat)


I would advise waiting for at least a year ... watch real estate trends.

I think that there's a real good chance of a real estate collapse in the next 12 months - and a certainty of one in commercial. Commercial will never recover; but if you can buy it for nothing and convert to residential (condo?) that will be profitable.

If that happens; don't jump in till things start to stabilize ... and cash will be king.
You'll be able to pick up some real gems for dimes.

Pay off debt, keep liquid, stay alert, don't be in a hurry ...


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## _Tron_ (Feb 9, 2020)

OP, if you are still there, you described your situation very articulately. The exception is that although you say you need cash you did not go into details. If you are not collecting UI, and must pay rent or be evicted, than the loan may be better than homelessness. But again, only partial information. You may have other options?

"Im just a few annoying small bills from being debt-free..."

You did not specify how much in debt, and what kind of debt (the vig). Depending on those two factors there may be a play for you. Let's assume the debt is 4 figures and the interest rate is double-digit. Consider taking the loan in that case. Here's what you get. First, throw out everything Seamus said about debt. It is clear he has a hardon for debt in general and it is clouding his thinking. If you can consolidate *existing debt*, debt you _already _have incurred, into a single payment at lower interest rate then it is prudent to do so. Period.

And besides reducing your debt load and thus the time to pay it off (unless you already plan to re-establish your income and pay it off in less than one year), take note that this type of loan is an *installment *loan, and will tend to raise you credit score. Typical credit score algos give you a bump for having both revolving credit (credit cards) in good standing, and installment credit (mortgage, car loan, and this loan under discussion.

Of course it may be unlikely that the bank will report on your loan status to a credit reporting agency the first year. But if you choose to take the loan now, while it is available, you will have the option in a year to pay it back at once or in installments. Who knows what a year will bring. According to this interest only loan calculator the cost to hold the loan for 1 year is $131.28. You of course could verify this with the bank before signing on the dotted line. Good luck!


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## Seamus (Jun 21, 2018)

_Tron_ said:


> First, throw out everything Seamus said about debt.


No need to be a dick.

There are different perspectives and not one path to take. You sound like a pompous ass who believes they know the one correct way to do things.

There are facts and there are opinions. You sound like the type who believes your opinions ARE the facts.


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## JaredJ (Aug 7, 2015)

There's so much stupid in this thread it's no wonder some people are stuck driving Uber.


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## _Tron_ (Feb 9, 2020)

Seamus said:


> No need to be a dick.
> 
> There are different perspectives and not one path to take. You sound like a pompous ass who believes they know the one correct way to do things.
> 
> There are facts and there are opinions. You sound like the type who believes your opinions ARE the facts.


Incorrect. I showed my work. If this was a question of whether it's good or bad to be in debt I would agree with you that it is a matter of different perspectives. But you are arguing to the OP not to swap higher interest debt for lower interest debt, even thought the debt would go away sooner. You are simply mathematically incorrect in that assertion.

I won't try to change your mind, but for anyone trying to make sense of your line of reasoning here is a simple example...

You have credit card debt of say, $3500 at 19%. The bank calls you up to tell you are such a good customer that they are going to lower your rate to 3.75%. You decline their offer on the basis that it's bad to be in debt, even though it means the debt would be paid down in less time. You continue to pay the 19%.

What is the difference between that and consolidating high interest debt on one or more accounts into lower interest debt on one loan?

Answer: None.


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## Seamus (Jun 21, 2018)

_Tron_ said:


> Incorrect. I showed my work. If this was a question of whether it's good or bad to be in debt I would agree with you that it is a matter of different perspectives. But you are arguing to the OP not to swap higher interest debt for lower interest debt, even thought the debt would go away sooner. You are simply mathematically incorrect in that assertion.
> 
> I won't try to change your mind, but for anyone trying to make sense of your line of reasoning here is a simple example...
> 
> ...


Thanks Captain Obvious, Of course a lower rate pays debt in less time, you are missing the point and I'm not repeating it all.

Whatever works for you.



JaredJ said:


> There's so much stupid in this thread it's no wonder some people are stuck driving Uber.


I thought driving Uber *was* the key to financial success, that's what the guy who referred me said!


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## _Tron_ (Feb 9, 2020)

Seamus said:


> Thanks Captain Obvious, Of course a lower rate pays debt in less time, you are missing the point and I'm not repeating it all.
> Whatever works for you.


Yes it is obvious. So why did you say _this_ earlier in the thread?


Seamus said:


> If you use the money to pay off debt then you are _incurring _debt to _reduce_ debt which makes no sense. Forget any discussion of "lower interest rate". Just pay off debt period.


I will let you have the last word if you wish. Apologies to the OP if this was a non-productive sidebar for you.


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## oldfart (Dec 22, 2017)

TheDevilisaParttimer said:


> A 30 year loan on $3.5k at 3.75 interest without an option for early repayment or if interest baked into all installments is absolutely insane.
> 
> Do not walk, run from this loan!
> 
> That's 30 years worth of 3.75% compounding interest. Run, run, run &#127939;‍♂


Its not compounding interest,

compounding interest is earning (or paying) interest on interest, Looking at a savings account, comparing simple interest to compounding interest over time, gives you a picture like this










most loans including the EIDL require regular payments of both principal and interest. As you make your monthly payments, the amount of interest paid each month goes down and the amount that goes to principal goes up. . like this, This is pretty much the opposite of compounding interest










The only loan I can think of that where the interest compounds is a reverse mortgage.

The eidl requires regular monthly payments of principal and interest, so you pay the interest as it accrues. The interest does not compound


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## Seamus (Jun 21, 2018)

_Tron_ said:


> Yes it is obvious. So why did you say _this_ earlier in the thread?
> 
> I will let you have the last word if you wish. Apologies to the OP if this was a non-productive sidebar for you.





_Tron_ said:


> Yes it is obvious. So why did you say _this_ earlier in the thread?
> 
> I will let you have the last word if you wish. Apologies to the OP if this was a non-productive sidebar for you.


You are having a hard time differentiating between "mentality" and "math" and my point is about debt mentality. I simply say focusing on aggressive debt repayment and then taking on no more debt is a quicker, better way of getting out of the constant debt trap. Let's be honest, people who are perpetually in debt don't have an "interest" problem they have a "spending" problem. Simply put, they want something they don't have the money for so they incur more unnecessary debt. All the debt restructuring techniques in the world won't change that.


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## UberBastid (Oct 1, 2016)

Everybody's path is different - because everyone's goals are different.

Wifey and I decided last week that we will be leaving California. We have a one-year plan. Last three months we've paid off about 45% of our short term high-interest debt (credit card). Another 3 months they will be zero. Then we will get the truck paid off, about $10k.

When we leave Cali the goal is to have $50k in the bank, and no debt.

The people and the government here are mad. Stark raving, howling at the moon mad. 
We too old to be moving across the country, but we gotta do it.


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## Atom guy (Jul 27, 2016)

UberBastid said:


> Everybody's path is different - because everyone's goals are different.
> 
> Wifey and I decided last week that we will be leaving California. We have a one-year plan. Last three months we've paid off about 45% of our short term high-interest debt (credit card). Another 3 months they will be zero. Then we will get the truck paid off, about $10k.
> 
> ...


I assume you will be moving to a red state. Please don't infect your new home by voting for the blue state policies you are about to flee.


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## UberBastid (Oct 1, 2016)

Atom guy said:


> I assume you will be moving to a red state. Please don't infect your new home by voting for the blue state policies you are about to flee.


I have never voted along 'blue' lines.
I believe in the Constitution, and personal freedoms, and minimal gov't intervention in private affairs.

So, therefore, why would I move to another and lesser version of California?


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## Atom guy (Jul 27, 2016)

UberBastid said:


> I have never voted along 'blue' lines.
> I believe in the Constitution, and personal freedoms, and minimal gov't intervention in private affairs.
> 
> So, therefore, why would I move to another and lesser version of California?


Seems like a lot of people from California are starting to turn their new states purple


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## whatyoutalkinboutwillis (Jul 29, 2017)

UberBastid said:


> Everybody's path is different - because everyone's goals are different.
> 
> Wifey and I decided last week that we will be leaving California. We have a one-year plan. Last three months we've paid off about 45% of our short term high-interest debt (credit card). Another 3 months they will be zero. Then we will get the truck paid off, about $10k.
> 
> ...


Um, what's happening in California is capitalism at it's finest. Why would a landlord accept low rents when they have people willing and able to pay more? Why would home-owners sell their houses for less when their neighbors are selling high? Maybe the government can step in and set up affordable housing, but that's socialism, right?



DeadHeadDriver said:


> For sake of discussion the scenario is that you applied for the Economic Injury Disaster Loan and eventually were approved. Its 3.75% Interest, 30-years, & loan cannot be repaid until after 12 months with *none* of money eligible for forgiveness.
> 
> View attachment 465458
> 
> ...


This sounds like an easy answer to me.

1. It's only $18 a month
2. It won't take you 30 YEARS to pay back 3k
3. I didn't see a 12-month lag.


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## TonyStewart (Apr 4, 2020)

The EIDL Loan can't be used to refinance your debt. Hopefully you know what your doing but doesn't sound like it. Uber on.


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## Atom guy (Jul 27, 2016)

TonyStewart said:


> The EIDL Loan can't be used to refinance your debt. Hopefully you know what your doing but doesn't sound like it. Uber on.


The EIDL is meant to be "working capital" for the small business, and working capital is money you pay the business's bills with. There is a requirement that the SBA can documentation of how you spent the money, but keeping track of your business expenses isn't that hard


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## PTB (Feb 3, 2015)

oldfart said:


> No I dont feel better, You are giving advice without knowing the whole story, I agree the op probably shouldnt buy Tacos with the money, But what if he bought plants and seeds and topsoil and started a garden to grow some food, or if he buys some tools and starts a handyman business, or paid down his mortgage
> 
> debt is not a bad thing in and of itself
> It depends on how you intend to use it, And having a credit line available to you is absolutely an emergency fund
> ...


you realize the EIDL loans have restricted use for the money, right?
cannot be used for FIXED assets is one of them.


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## oldfart (Dec 22, 2017)

PTB said:


> you realize the EIDL loans have restricted use for the money, right?
> cannot be used for FIXED assets is one of them.


yes I know their are limitations. So if I get approved I will use the money for legal EIDL business purposes and use my PPP loan for money for legal business purposes and use unemployment money for for personal purposes


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## UberBastid (Oct 1, 2016)

whatyoutalkinboutwillis said:


> Um, what's happening in California is capitalism at it's finest. Why would a landlord accept low rents when they have people willing and able to pay more? Why would home-owners sell their houses for less when their neighbors are selling high? Maybe the government can step in and set up affordable housing, but that's socialism, right?


There are many communities in Cali that have rent control.
Much of the SF bay area ...

How many years have you lived in California.
I was born here, and lived here for about 50 years of my 66 yr lifespan.

Do tell me all about it.


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## DeadHeadDriver (Feb 7, 2020)

TonyStewart said:


> Hopefully you know what your doing but doesn't sound like it. Uber on.


"My first name is Clueless. My last name is Wallah.
Clueless Wallah,
Clueless Wallah
Clueless Wallah....."
-----_Kasvot Vaxt_ (Caught them Live in Vegas. Very impressive!)


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## Lolo11 (Aug 5, 2018)

how money can be spent if i take the loan.


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## jonsnownothing (May 10, 2019)

Lolo11 said:


> how money can be spent if i take the loan.


shoot first, ask later


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## DeadHeadDriver (Feb 7, 2020)

Lolo11 said:


> how money can be spent if i take the loan.


Noticed that on your portal, regarding Electronic Disbursement says 'Completed' but you have not signed loan docs yet: 
------>Did you already receive the $1,000 'advance' that is treated as a grant?

Only asking b/c mine said same thing but my $1k advance is missing...


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## Lolo11 (Aug 5, 2018)

DeadHeadDriver said:


> Noticed that on your portal, regarding Electronic Disbursement says 'Completed' but you have not signed loan docs yet:
> ------>Did you already receive the $1,000 'advance' that is treated as a grant?
> 
> Only asking b/c mine said same thing but my $1k advance is missing...


i received a month ago


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## DeadHeadDriver (Feb 7, 2020)

Congratulations. 
Appreciate your feedback. Helps make me an informed caller when i have to deal with SBA customer help....


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## whatyoutalkinboutwillis (Jul 29, 2017)

UberBastid said:


> There are many communities in Cali that have rent control.
> Much of the SF bay area ...
> 
> How many years have you lived in California.
> ...


One doesn't have to live there to understand what is going on. People are complaining about the high cost of rent and blaming the government. But the rent is high because capitalists realize they can make more money if they charge more. If you have a complex near a high tech company, why wouldn't you charge thousands a month? As soon as one person pays, the cost for everyone else goes up. And I doubt all of California is rent-controlled, otherwise, people wouldn't be *****ing about the costs as they are leaving. The same goes for houses. If your neighbor sold their small crappy home for $1 million, you'd want the same or more. This anger at the government is misplaced because this would happen if the state leaned right. Hell, it IS happening in Texas.


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## UberBastid (Oct 1, 2016)

whatyoutalkinboutwillis said:


> People are complaining about the high cost of rent and blaming the government.


No they're not.
Who are these 'people'?
You sat down at the Starbucks on Shattuck Ave in Berkeley and you were talking abut that with your friends?

What I hear people complaining about is that the robber baron land lord is raising their rent again, and it was just raised two years ago.
He wants an extra $50 a month!

The fact that the landlords insurance went up $1000 a year, and taxes went up $350 a year .. and the last tenant he had didn't pay rent for the last six months and it took that long and a $5k legal bill to get the judge to kick them out, doesn't matter to these Bolsheviks. Evil landlord.

Come to Cali for a month - but mostly for the education.


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## OldUncleDave (Apr 22, 2019)

DeadHeadDriver said:


> For sake of discussion the scenario is that you applied for the Economic Injury Disaster Loan and eventually were approved. Its 3.75% Interest, 30-years, & loan cannot be repaid until after 12 months with *none* of money eligible for forgiveness.
> 
> View attachment 465458
> 
> ...


First, the assumption that you will have to pay back the loan. Considering the pandering the politicians do, there is a good chance of debt forgiveness, or at least postponement.

the ONLY secure jobs are Skilled physical labor. Plumbing, electrician, welder. An apprentice is about 6 months education, then work your as s off. Truck driver is included in this, I was one for 20 years. If you enjoy your job, it ain't work.

Business investment is a *****. Remember, the boss works 60 hours a week, the employees do 40! Check with a Business Broker in your area to find out what's good. Don't open up a Vegan restaurant in Philly. Make sure the customer base is there. Some universal ideas are laundromat, vending machine routes, franchise restaurants...


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## Woohaa (Jan 15, 2017)

It's your money and you need it now!


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## dauction (Sep 26, 2017)

Poopy54 said:


> It says on that page that EIDL loans are only for Agricultural relief and nothing other than that.
> *At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received.*


I wonder if peopel in a Weed State like Colorado could use it as seed money to build their own little weed empire 
:smiles:


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## bobby747 (Dec 29, 2015)

all that bullshit and paperwork for $3500??? let them keep it..


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## bobby747 (Dec 29, 2015)

30 year payback on $3500 omg


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## Atom guy (Jul 27, 2016)

bobby747 said:


> all that bullshit and paperwork for $3500??? let them keep it..


Yes, electronically signing your name in a couple spots is very hard, lol


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## bobby747 (Dec 29, 2015)

No atom guy. The headache from the government if not spent properly... or if they think fraudulent. For only small amounts of cash. Come on signing is easy


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## touberornottouber (Aug 12, 2016)

bobby747 said:


> No atom guy. The headache from the government if not spent properly... or if they think fraudulent. For only small amounts of cash. Come on signing is easy


I'm pretty sure one of the approved uses for a rideshare driver would be to make loan payments on your vehicle or even to get a new vehicle. That right there makes it useful for most people here. Even if you think your vehicle is okay you never know what might happen down the road.

Remember that there is still a good chance of a "second wave" this fall. It wouldn't be unheard of for it to be 2-4 times worse than what we've already seen. If so, you might not want to drive then or you might not even be able to do so if you wanted to risk it. Right now having some extra savings in the bank is a great idea.



Lolo11 said:


> how money can be spent if i take the loan.


Keep in mind that a loan over $24,999 comes with extra conditions such as all your personal assets being collateral for the loan. Also they will probably be far more stringent in checking your application. Check out /r/EIDL on Reddit for some good info on this.

Also you might consider going to nav.com and getting your vantage3 credit score. That is reported to be what they use. It needs to be above 570. Also no felonies or misdemeanor convictions in the last five years.


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## whatyoutalkinboutwillis (Jul 29, 2017)

UberBastid said:


> No they're not.
> Who are these 'people'?
> You sat down at the Starbucks on Shattuck Ave in Berkeley and you were talking abut that with your friends?
> 
> ...


Dude, you just agreed with me. "What I hear people complaining about is that the robber baron landlord is raising their rent again, and it was just raised two years ago. He wants an extra $50 a month!". THAT IS WHAT HAPPENS IN A CAPITALIST SOCIETY! That robber baron is under no obligation to keep his rents at the same level from two years ago. He's in business to make money. And if 'people' can't afford his rent, he'll lower it. Obviously there are people willing and able to pay that extra $50 a month, otherwise, he wouldn't charge it.

His insurance going up also isn't the fault of the government. The insurance company isn't a charity. Taxes do come from the government, but it should be based on appraisals. And if real estate prices go up, then taxes go up as well. Perhaps you should open a book or something. In Cali or outside it. Just saying.



bobby747 said:


> all that bullshit and paperwork for $3500??? let them keep it..


I just got funded for 17k. Money was placed in my bank account this morning. I signed my paperwork on Monday via their online portal. I didn't ask for 17k. They ran my credit and came up with that amount, I guess. I also received the 1k forgivable about a month ago.


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## Woohaa (Jan 15, 2017)

DeadHeadDriver said:


> For sake of discussion the scenario is that you applied for the Economic Injury Disaster Loan and eventually were approved. Its 3.75% Interest, 30-years, & loan cannot be repaid until after 12 months with *none* of money eligible for forgiveness.
> 
> View attachment 465458
> 
> ...


https://www.fundera.com/blog/best-low-cost-franchises
https://www.entrepreneur.com/article/292728


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## RioRoja (Mar 13, 2017)

DeadHeadDriver said:


> Unfortunately they DO NOT allow for early repayment, cannot repay before 12 months.


That's actually not true.


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## whatyoutalkinboutwillis (Jul 29, 2017)

Woohaa said:


> https://www.fundera.com/blog/best-low-cost-franchises
> https://www.entrepreneur.com/article/292728


I think, but I'm not quite sure, but I don't think you can use the money to buy a business. I know you can't expand your current business, so I'm thinking that you also can't purchase another business with the loan.


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## Lvd2020 (Apr 9, 2020)

Lolo11 said:


> how money can be spent if i take the loan.


The amt you are approved for minus the 1k advance. If you request over 25k they will ask for collateral.


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## Woohaa (Jan 15, 2017)

Lvd2020 said:


> The amt you are approved for minus the 1k advance. If you request over 25k they will ask for collateral.


They didn't ask collateral from large corporations that received millions during the first round of the stimulus. Why now for people receiving only $20,000?


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## Lvd2020 (Apr 9, 2020)

Woohaa said:


> They didn't ask collateral from large corporations that received millions during the first round of the stimulus. Why now for people receiving only $20,000?


The eidl and ppp are 2 different programs. The ppp is forgivable the eidl is a standard loan you have to pay back which is why they require collateral.


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