How to pay back an EIDL or PPP loan



On December 22, 2020, Congress passed the new business stimulus bill, which includes new Paycheck Protection Program loans and new EIDL grants, as well as other facilities for small businesses. Read about this legislation and apply for a new PPP loan here.

If your company received an Economic Injury Disaster Loan (EIDL) or Paycheck Protection Program (PPP) loan, you may have found that it wasn’t suitable for your small business for a number of reasons:

  • You just wanted the EIDL grant and no EIDL loan,
  • You didn’t understand Credit terms when you applied
  • You cannot use the EIDL funds or PPP finances the way you hoped
  • They don’t think the bulk of your PPP loan will be eligible forgiveness,
  • Not sure if your business will survive to repay a loan

Whatever the reason, you may want to pay it back. How you do that? It can definitely be confusing!

EIDL loan repayment

The website where you can pay back your EIDL loan can be found at

You will need to have your 10 digit credit number and a withdrawal amount to repay it. There is no early repayment penalty, but it is possible that a minimal amount of interest has accrued since the loan was paid off. Additionally, you’ll need to pay back the UCC $ 100 filing fee if any is applicable to your loan. (UCC-1 filings are for EIDL loans over $ 25,000.)

Before submitting your payment, request a withdrawal amount by contacting any of the following:

  • The service bureau listed on your 1201 monthly borrower statement OR
  • The Disaster Customer Service Center at 1-800-659-2955 or if you have not yet received a 1201 Borrower Certificate

You can pay by

  • Bank account (ACH)
  • Paypal account
  • Debit card

This is what the refund form looks like:

SBA Form 1201 Loan Repayment

Top: Always make sure you are on the secure website when making a payment! On the page’s URL bar, look for the padlock, which you can click to confirm that you are on a secure website.

Keep a good record of all payments you make and when you made them; take screenshots if necessary.

Note that if you have received an EIDL loan for more than $ 25,000, it is a good idea Check your business credit reports to ensure the SBA clears the UCC-1 filing. UCC enrollments can affect your ability to qualify for other small business loans.

If you only want to repay part of the loan early, but not all, use the same form.

Repayment of the EIDL grant

Keep in mind that borrowers generally do not have to repay an EIDL grant. These grants were awarded in increments of $ 1,000 (up to $ 10,000) and should be deposited into your bank account with the notation EIDG (with the “g” for “grant”) in your bank account. Until the IRS says otherwise, these funds may be taxable, but it’s still free money for your business.

However, if you didn’t truthfully complete your application, didn’t apply in good faith, or found out, for example, that your company really doesn’t need the money, you may want to return your scholarship as well. The SBA states that you should not use the above information to submit a payment for an EIDL grant. Instead, contact the SBA at 1-800-659-2955 or [email protected] for payment instructions.

PPP loan repayment

The Paycheck Protection Program loans were made by lenders, not the Small Business Administration. You need to repay your loan to your lender, not the SBA. Contact your lender for instructions on how to return your PPP loan.

This article was originally written September 16, 2020 and was updated January 11, 2021.

Rate this article

This item currently has 50 ratings with an average of 4.5 stars.

class = “blarg”>



Comments are closed.