Last month, the Small Business Administration (SBA) announced several changes to the COVID-19 Economic Injury Disaster Loan (EIDL) Program. Businesses have been eligible to apply for the economic disaster relief loans since March 2020 to help overcome the temporary loss of revenue they experienced because of the coronavirus pandemic.
Some of the key changes announced by the SBA are:
- Increasing the cap from $500,000 to $2,000,000 beginning on October 8, 2021
- Implementation of a deferred payment period to ensure business owners will not have to begin EIDL repayments until two years after the loan origination.
- Establishing a 30-day exclusivity window for loans of $500,000 or less to ensure that small businesses wanting to apply are approved and receive the disbursement quickly.
- Expanding the eligible use funds. Currently EIDL loans can be used for any normal operating expenses and working capital including payroll, purchasing equipment, and paying debt. Now funds can be used to prepay commercial debt and make payments on federal business debt as well.
The SBA hopes the enhancements to the COVID-19 EIDL program will allow businesses greater support from the more than $150 billion in funding still available. Small businesses, nonprofits and agricultural businesses can apply at www.sba.gov/eidl. Please contact Holbrook & Manter today to determine eligibility and assistance with the application process.