The SBA has announced that it 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 low-interest and long-term COVID EIDL program has helped millions of small business owners survive the impacts of the pandemic with its flexibility and affordability – allowing entrepreneurs to hire and retain employees, and purchase needed equipment and inventory.
Now, 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.
- The SBA has authorized 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.
- The SBA has also made sure that small businesses have time to recover from COVID-19 impacts by further deferring payments – so you won’t need to start repaying these loans for two years after your loan origination date.
- In addition, to help ensure our smallest businesses can access this crucial capital, there is now an 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.
- Finally, 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.
*Please note all business owners who have received previous loans through the SBA’s Paycheck Protection Program (PPP), Restaurant Revitalization Fund (RRF), or Shuttered Venue Operators Grant (SVOG) can still benefit from COVID EIDL.
