The COVID-19 EIDL is a federal small business loan program that supports small businesses’ recovery from COVID-19’s economic impacts by providing accessible and borrower-friendly capital. The program is open to small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories.
“The SBA’s COVID Economic Injury Disaster Loan program offers a lifeline to millions of small businesses who are still being impacted by the pandemic,” SBA Administrator Isabella Casillas Guzman said in a press release.
The loan comes directly from the U.S. Small Business Administration (SBA) and must be repaid. It is a low-interest, fixed-rate, long-term loan to help businesses overcome the effects of the pandemic by providing working capital to meet operating expenses.
Proceeds can be used to make regular payments for operating expenses, including payroll, rent/mortgage, utilities, and other ordinary business expenses, and to pay business debt incurred at any time (past, present, or future).
The SBA announced the following updated guidance for COVID Economic Injury Disaster Loan (EIDL) program applicants to better serve small business owners in need, while funding remains available:
- EIDL loan and Targeted Advance applications will be accepted until December 31 and will continue to be processed after this date until funds are exhausted.
- Supplemental Targeted Advance applications will be accepted until December 31; however, the SBA may be unable to process some Supplemental Targeted Advance applications submitted near the December 31 deadline due to legal requirements. The SBA cannot continue to process Supplemental Targeted Advance applications after December 31 and strongly encourages eligible small businesses to apply by December 10 to ensure adequate processing time.
- Borrowers can request increases up to their maximum eligible loan amount for up to two years after their loan origination date, or until the funds are exhausted, whichever is soonest.
- The SBA will accept and review reconsideration and appeal requests for COVID EIDL applications received on or before December 31 if the reconsideration/appeal is received within the timeframes in the regulation. This means six months from the date of decline for reconsiderations and 30 days from the date of reconsideration decline for appeals – unless funding is no longer available.
“The COVID Economic Injury Disaster Loan (EIDL) and EIDL Advance programs still have billions of dollars available to help small businesses hard hit by the pandemic. More than 3.8 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans,” said Patrick Kelley, Associate Administrator for SBA’s Office of Capital Access in a press release.
To apply, visit www.sba.gov/eidl to learn more about eligibility and application requirements. The application deadline is December 31, 2021. To learn more about the EIDL and other SBA programs, see here.