Am I the only one finding this clause murky?
"7. Paying down (including regular installment payments) or paying off loans provided, or owned by another Federal agency (including SBA) or a Small Business Investment Company licensed under the Small Business Investment Act. Federal Deposit Insurance Corporation (FDIC) is not considered a Federal agency for this purpose; "
If, for ex, I have a business LOC from say Citibank, and was unable to make the monthly installment payments during Apr - June, can I use the funds from an EIDL loan to bring my payments up-to-date? Is it considered FDIC or not? What about business CC payments?
Here's something that I saw floating around- I didn't put it together but it gives you some perspective (it's in reference to the term
long term debt the SBA uses as a proceed use restriction):
1. You CAN make regular mortgage/CC payments.
2. You CAN catch up on missed payments since 1/31.
3. You CAN pay off debt which was charged to your CC since 1/31.
4. You CANNOT pay down/pay off an old mortgage. You CAN pay a balloon payment which became due now.
5. I’ve seen several experts state that CC debt is, by definition, “short term” debt even if you’ve had the debt for year. That would make it kosher. But other experts (I think most), say the opposite.
Obviously the term
you here is in reference to the entity receiving the loan.