Latest news on Economic Disaster Lending (EIDL) from the US Small Business Administration
For owners of small businesses, the COVID-19 pandemic has proved particularly harmful.
But recently, the U.S. Small Business Administration (SBA) updated its guidelines for COVID Economic Disaster Lending Program (EIDL), allowing applicants to access the remaining funds.
Small business owners will have access to nearly $ 300 billion in aid through the EIDL COVID program, which is a federal disaster relief loan that will help small business owners who are still reeling from the pandemic, such as restaurant, gym and hotel owners.
Applications accepted until December 31
Applicants have until December 31 to be eligible for an EIDL loan and targeted advance. Applications submitted before this date will continue to be processed until funds are exhausted.
While applicants have until December 31st for additional targeted advances, it is strongly suggested that these requests be submitted by Friday December 10th so that they can be processed within a proper timeframe.
Loan increases, recourse info
The SBA also allows borrowers to request an increase in their maximum eligible loan for up to two years after the original loan date, while applicants whose request has been denied are allowed to appeal and may be reviewed until six months from the date of decline.
This information is in light of major improvements announced by the SBA last September on the EIDL program, which included an increase in the EIDL COVID cap from $ 500,000 to $ 2 million, a two-year deferred repayment, a window of exclusive 30-day approval and disbursement funds for loans of $ 500,000 or less, the ability to use funds to prepay commercial debt and make payments on federal commercial debt, and requirements to simplified affiliation.
Overall, the changes and improvements made by the SBA benefit the 3.8 million small businesses across the country that employ more than 20 million people.
How to apply
The next step for small business owners is to get their hands on the money to help get their business back on track. What are you doing?
Qualifying small business owners can visit www.sba.gov/eidl to see if they meet the eligibility requirements, and then submit their application.
The SBA cannot guarantee that all applications will be processed by the end of the year, so it is strongly recommended that all applications be sent by December 10th.
Small business owners can also call the SBA’s toll-free customer service center to speak to a representative from 8 a.m. to 8 p.m. ET at 1-833-853-5638.