Charleston Small Businesses May be Primed for Disaster when it comes to EIDL Loans

CHARLESTON, S.C. – As businesses struggled due to pandemic-related challenges, four million small businesses took out $390 billion in loans through the Economic Injury Disaster Loan (EIDL) program. The EIDL was part of the U.S. Small Business Administration (SBA) and U.S. Treasury as an expanded part of The Coronavirus Aid, Relief and Economic Security or CARES Act.

Although the loan payment was deferred for two years, it has still been accruing interest. Just as small businesses are starting to recover from the huge losses from mandatory shutdowns, employee shortages, supply chain issues and soaring inflation the first EIDL payment is due. The first date for repayment, Oct. 10, is right on the heels of Amazon Prime Days. has received numerous calls, questions and frustration from business owners expressing concern about the repayment process. Unknown to borrowers and lenders, payments made by businesses now are being applied to the interest only that has accrued over the past 30 months at a time when they most need relief to prepare for holiday sales.

“We want business owners to focus on what they do best: Run the business and do it well. That’s why we have provided advocacy tools for the business owner on our website at so that they can be empowered to take action and have the latest information to make the best decisions,” say Raj Tulshan, founder of Loan Mantra.

EIDL (Economic Injury Disaster Loan) How to Take Action:

Appeal to Legislators. Business owners can contact their local district legislators by calling, e-mailing or writing letters to express concern. has put together a tool kit with a sample form letter, e-mail and phone script to save time. Unsure of who a district representative may be?

Strength in numbers. Share this message with other businesses, business networks, chambers of commerce, businesses in the same area, associations and like groups.

Reach out. Talk to people every day or the “sphere of influence” to gain community support.

Ask for help. Don’t be afraid to ask for help when and where it is needed.

EIDL (Economic Injury Disaster Loan) Repayment Tips:

The loans won’t be forgiven. Unlike the Paycheck Protection Program (PPP), EIDL loans won’t be forgiven and need to be repaid. All Economic Injury Disaster Loan recipients received an email from The U.S. Small Business Administration (SBA) with the subject line: Important EIDL Reminder, which contains important information regarding your EIDL account setup and payment.

Set up a repayment schedule. Payments were deferred for the first two years, during which, interest accrued. Now, business owners must start making their monthly payments on their due date, which is determined by the “Effective Date” noted on your business’s promissory note.

Another payment can seem overwhelming stressful given inflation, staffing and supply-related pressures. Don’t look at the big picture -instead think about the incremental payments today as steps in the right direction. Set a calendar reminder or appointment to make this payment every month so you will stay ahead of schedule.

EIDL loans must be paid via a special platform. There are two separate platforms you will need to access your loan information and pay your loan balance.

First, Capital Access Financial System (CAFS) maintains your EIDL & PPP loan information. This includes your original balance, interest, accrued interest balance, etc. To obtain the EIDL loan information for your business, please select ‘EIDL’ and then ‘borrower search’ from the menu options. When registering on the CAFS website, carefully follow each step. There is no room for error when using this system, so be thorough and accurate when inputting your information.

Secondly, allows businesses to input their bank information and to set up recurring payments online. Inside your profile, choose ‘Make an SBA 1201 Borrower Payment’ as the menu option. While registering on may be simpler than registering on CAFS, it is not easy to change bank account information after you begin your loan payments.

Use the right number. Keep in mind that your SBA loan number is different than your EIDL loan number. This information can be found on the top of the second page of the promissory note.

EIDL loans accrued interest. Many business owners received their first EIDL loan in early 2020 and a second EIDL loan in 2021. For many borrowers, that means interest has been accruing for more than 24 months, with additional interest accruing for more than 16 months. Borrowers are responsible for paying back the loan plus all accrued interest.

This type of loan program has ended. The COVID-19 EIDL program is not accepting new applications, increase requests, or reconsideration.

“Small businesses have been the backbone of the US economy and deserve fair economic terms and transparency,” say Raj Tulshan, founder of Loan Mantra, “We’re here as a resource to serve companies of all sizes and types during both good and turbulent times.”

About Loan Mantra

Loan Mantra is a one-stop FinTech business portal that democratizes the loan process by providing corporate sized services and access to new entrepreneurs, small and medium sized businesses. provides access to numerous loans and lenders, government programs and small business services all through one easy application process and upload of business information ONE time. Business accounts are free and secure. But most of all you won’t be served by a blog of bots after you sign up. Service is provided by friendly, responsive advisors who answer the phone and listen respectfully while serving accounts through one of three locations in the US. As a minority-owned business, we understand the challenges of underserved groups and we encourage diverse businesses to apply. We speak English, Spanish, Hindi, Bengal and many industries lingo. Moreover, if we do not speak your language we will learn. So, connect with us today at, or call 1.855. 700.BLUE (2583).


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