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Can I apply for an SBA 7(a) loan if I've received an EIDL and/or PPP Loan?
Can I apply for an SBA 7(a) loan if I've received an EIDL and/or PPP Loan?
Updated over a week ago

Yes, you can apply for an SBA 7(a) loan even if you've already received an Economic Injury Disaster Loan (EIDL) and/or a Paycheck Protection Program (PPP) Loan. Keep in mind the different purposes of these loans:

  • EIDLs are disaster relief loans designed to help businesses survive during challenging times. They cover a wide range of expenses during emergencies.

  • SBA 7(a) loans are more focused on business growth and expansion. They're used for various business purposes like working capital, equipment purchase, and hiring, supporting businesses in growth mode.

When applying for an SBA 7(a) loan, it's important to demonstrate that your business is transitioning from survival to growth. The use of proceeds from the SBA 7(a) should align with this growth-oriented objective, differing from the emergency-focused use of the EIDL/PPP loan(s). As always, understand the terms of your existing loans, use the funds appropriately, and ensure compliance with all program rules. An SBA-approved lender can provide further guidance tailored to your business's specific situation.

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