EIDL loans under $25,000 are considered “unsecured” and do not require any collateral. EIDL loans over $25,000 will require collateral.
Then, is the EIDL loan guaranteed?
Do I need to provide a personal guarantee on EIDL loans? The SBA waived any personal guarantee on advances and loans below $200,000. For loan amounts over $200,000, the SBA may require personal guarantees.
Consequently, what can an EIDL loan be used for? However, once you have used up the entirety of the PPP loan, you can use the EIDL to cover the payroll, rent, lease, mortgage interest, and utilities expenses you would have otherwise used the PPP loan to cover.
Thereof, will EIDL loans be audited?
Small business owners who took PPP loans or received EIDL grants may not be at any greater risk of IRS scrutiny than other businesses, but they may be audited by the SBA.