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Economic Injury Disaster Loan May Be Assumable

By: Jon Holbert Managing Partner

CBI Northwest Arkansas

If you took the opportunity to protect your business by obtaining an EIDL (Economic Injury Disaster Loan) during the Pandemic, you will want to continue to read this information, particularly if you’re contemplating a sale in the next year or so. Most EIDL loans have 30-year terms, interest rates below 4% and payments deferred for up to two years, although interest is accruing, and business owners should be aware of that fact.

EIDL terms are substantially better than one might expect on an acquisition loan from the SBA.

So how does that affect Sellers and Buyers of businesses?

CBI recently closed a deal on business that had an EIDL in place. In fact, they had not even made the first payment on it. The CBI Team was able to arrange for the buyers to assume the EIDL note with the same low interest, long term, low payments and deferred initial payment.  CBI may have been the first or, at least, one of the first to work this out with the SBA. This is a great deal for Business Sellers as they are relieved of that responsibility. It is also great for business Buyers since they get much better terms and a better rate than they would have had on an acquisition loan. Now that the process has been established through the SBA, we believe that we can get these loans assumed faster than a new loan can be funded. That makes it even more attractive for all parties involved.

CBI prides itself on being trailblazers in finding ways to better serve our clients. Our creativity, experience and expertise help us get more deals across the finish line. If you have a good business (with or without an EIDL) that you have decided to sell, we can find a way to get it done.  The first step is up to you, call or email today.

Call 877-582-5200 or email