EIDL Loans: Best Practice for Making Payments

March 13, 2023

If you’re beginning to make your payments on your EIDL loan, there are a few things you might want to take into consideration for best practices. Now, obviously these are recurring payments you want to make sure you’re on time each month and honestly it’s pretty difficult to set up the recurring payments on their website.

So I have a few tips for you.

Set up Separate Account

Capital Access Financial System

The first thing you’ll need to do when you log in to the Capital Access Financial System or CAFS, that’s where you’ll be making the payments, is you’ll also need to set up an account at pay.gov, without this option, you won’t be able to set up the recurring payments. At pay.gov, you’ll need to set up the ACH for the account where they should draft, and that needs to be an account 1201 payment. That’s the type of loan that the EIDL falls under for government payment.

ACH information

In that ACH information, let’s give you a few tips about what account you should use. I strongly recommend that you have a separate account set up specifically for the EIDL loan payment each month. Whether you transfer money individually or all in one lump sum into that account and then have that one account drafted or you just put the money in there, you want to separate those funds.

There’s really never a good case where you want to give the SBA the ability to draft an account with an endless supply of money. Who knows if they ever go haywire or if they think you’re in default, they may attempt to draft more than their payment should be.

Relay Financial

So I like to set up a separate account specifically for this. If you’re using a product like Relay Financial relayfi.com, you can set up multiple accounts just like this for many purposes, free of charge. So I strongly suggest you take a look there.

But I have a separate account set up for the repayment, and then I make weekly drafts from my operating account or weekly transfers, I’m sorry, from my operating account into that so that every month there is money there to fund that payment.

Then if you ever need to stop making payments, it’s sometimes difficult to get the government to stop drafting an account, but if there is no money in that account, they will have to stop drafting it, so you could close that account if needed.

For additional read: EIDL Loans: When You Can’t Pay

Set up Recurring Payments

So my first advice, set up a separate account.

Secondly, do set up the recurring payments, I like to set up recurring payments that I control in most cases, but I’m not confident the government would ever find my payment and get it posted correctly.

I will have them draft it, but only from an account that has the money for one payment in it. In that payment account, use the recurring option on the pay.gov site first.

Set up the account that you want to draft on pay.gov, then switch back over to the Capital Access Financial System and make a payment like you normally would. You should then see an option to make a recurring payment.

If you ever need to change accounts, you’ll go back into the pay.gov site, very confusing and delete the old one and then set up the new account. I actually switched an account for somebody recently and it is pretty easy to see once you log in, but again, a little confusing where those options are.


A little summary, if you’re going to set up recurring payments, go into pay.gov first, set up 1201 payments and enter in your ACH information for the account you’d like to draft. Then go into the Capital Access Financial System, make a payment, and you’ll be able to tell it it is a recurring payment.

If you have any questions on that or if you have any other suggestions as you’ve found helpful, we’d love to hear it. Shoot me an email or comment on this video and again subscribe to our channel to make sure you get all of the latest and greatest on the EIDL loan and everything else that we offer.

Eidl Loans Best Practices

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Donna Bordeaux, CPA with Calculated Moves

Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.