Small businesses across the country continue to need financial relief to get to the other side of this crisis.
As part of President Joe Biden’s recently announced COVID-19 Action Plan, the SBA has improved the COVID Economic Injury Disaster Loan (EIDL) program to better meet the needs of small businesses, especially those hardest hit industries and smallest entities that still need relief.
The SBA is making the program even more flexible to meet your needs.
- The SBA has increased the amount of funding that can be borrowed from $500,000 to $2 million for qualified applicants.
- COVID EIDL funds to be used to pay and prepay commercial debt and make payments on federal business debt in recognition of the financial reality many small businesses are facing during this crisis.
- You won’t need to start repaying these loans for two years after your loan origination date.
- To help ensure the smallest businesses can access this crucial capital, there is a one-month exclusive window for businesses requesting $500,000. During this time, approvals and disbursements will focus 100% on loans $500,000 or less until October 8th, upon which approvals and disbursements will be opened up to all loan sizes.
- 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.
The SBA is committed to serve small businesses efficiently while also maintaining strong protections against fraud and abuse, and has worked hard to improve operations.
Applications for the COVID EIDL program can be submitted until December 31, 2021 or until funds run out. I encourage you to not delay and apply today. Please share this with any fellow business owners you think may qualify for the program.
For more information and eligibility requirements visit: https://www.sba.gov/funding-programs/loans/covid-19-relief-options/eidl/covid-19-eidl?utm_medium=email&utm_source=govdelivery#section-header-5