The Small Business Administration has significantly upped the cap for COVID-19 Emergency Injury Disaster Loans from $500,000 to $2 million, providing low-interest, long-term loans for small businesses and nonprofits that experienced or continue to experience economic harm resulting from the pandemic.
The EIDL program offers 30-year, 3.75% fixed interest rates to businesses and 2.75% to private nonprofits, with key changes including:
- Increasing the COVID-19 EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment and paying debt.
- Implementation of a deferred payment period, ensuring small business owners will not have to begin COVID-19 EIDL repayment until two years after loan origination.
- Establishment of a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less to ensure businesses have additional time to access these funds. Approval and disbursement of loans more than $500,000 will begin after the 30-day period.
- Expansion of eligible use of funds, with COVID-19 EIDL funds now eligible to prepay commercial debt and make payments on federal business debt.
- Simplification of affiliation requirements to ease the COVID-19 EIDL application process for small businesses.
The SBA is ready to receive new applications immediately from small businesses looking to take advantage of these new policy changes for the more than $150 billion in available funds. The last day that applications may be received is Dec. 31.
For more information on eligibility and application requirements, visit sba.gov/eidl.