EIDL Loan Program Expanded
The U.S. Small Business Administration is ready to receive new applications immediately from small businesses looking to take advantage of policy changes to the COVID Economic Injury Disaster Loan (EIDL) program, a press release said Thursday Sept. 8.
Although targeted at the businesses hardest-hit by COVID, all qualifying businesses, nonprofits and organizations may apply. The last day to apply is Dec. 31, 2021, but the SBA encourages businesses to apply quickly. $150 billion in funding is available.
The SBA is offering loans up to $2 million with 24 months of deferment. The loans can be used to pay down other debt.
COVID EIDL Targeted Advance and Supplemental Advance grants totaling up to $15,000 are available to businesses in certain low-income areas.
Key changes announced by the SBA include:
- Increasing the COVID EIDL Cap. The SBA will lift the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.
- Implementation of a Deferred Payment Period. The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after loan origination so that they can get through the pandemic without having to worry about making ends meet.
- Establishment of a 30-Day Exclusivity Window. To ensure Main Street businesses have additional time to access these funds, the SBA will implement a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less. Approval and disbursement of loans over $500,000 will begin after the 30-day period.
- Expansion of Eligible Use of Funds. COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.
- Simplification of affiliation requirements. To ease the COVID EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund.
SBA Three-day, Small Business Summit, online week of Sept. 13
This year’s Small Business Summit events will spotlight the resilience of America’s entrepreneurs and the renewal of the small business economy as they build back better from the economic crisis brought on by a once-in-a-lifetime pandemic, the SBA announcement said. The virtual summit will honor the nation’s 30 million small businesses for their perseverance, ingenuity, triumphs, and creativity.
“This year’s National Small Business Week activities will take place in a virtual atrium and will include numerous educational panels providing retooling and innovative practices for entrepreneurs as small businesses look to pivot and recover toward a stronger economy,” the statement says.
Also from the statement: The SBA, along with our summit partner SCORE — the nation's largest network of volunteer, expert business mentors — will share important information about the many programs and services available to help businesses start and grow, build resilience and support, retain employees, discover new markets, and join key networks.
To register for the National Small Business Week Virtual Summit and to learn more, please visit http://www.sba.gov/NSBW.