Should I Take the EIDL Loan? – Friday, May 8, 2020 10:22AM

Q:  I received the email for the EIDL to continue the process. Do I really need it?  

A:  Ask us a couple of years from now!  How quickly will your practice recover from this round of Covid-19?  Will the virus recur in the fall?  Will we have to shelter in place again?  Who knows?  Remember, EIDL is a low cost loan with no prepayment penalty.  Take it now and hold it just in case.  There’s a small cost in interest with this decision.  What will be the cost to your practice if you don’t have working capital when you need it later?  Depletion of your retirement account?  Bankruptcy?  Those are high costs.  Due to the uncertainty and the limited availability of the EIDL money, take it while it’s available.