As businesses continue to struggle with the lingering effects of the pandemic, and in particular the highly contagious Delta variant, the Small Business Administration (SBA) has stepped in to offer additional relief.
The SBA recently announced enhancements to its COVID Economic Injury Disaster Loan (EIDL) program designed to help small businesses that are in need of assistance.
Key changes to the program include:
- An increase to the COVID EIDL cap from $500,000 to $2 million. Loans can be used to cover any normal operating expenses and working capital, including payroll, equipment purchases, and debt payments.
- A longer deferred payment period so business owners will not have to begin repayment until two years after loan origination.
- An exclusive window for businesses requesting up to $500,000. Through October 8, 2021, approvals and disbursements will focus 100 percent on these smaller loans. After October 8, approvals and disbursements will be open to all loan sizes.
- An expansion of eligible use of funds, to include prepaying commercial debt and making payments on federal business debt.
- Simplified affiliation requirements, which will model those of the Restaurant Revitalization Fund.
These enhancements will provide businesses greater, more flexible support and access to the more than $150 billion in available COVID EIDL funds.
Note: Businesses that have received previous loans through the Paycheck Protection Program (PPP), Restaurant Revitalization Fund, or Shuttered Venue Operators Grant are still able to benefit from the COVID EIDL.
To learn more about eligibility and application requirements, visit www.sba.gov/eidl. Applications may be submitted through December 31, 2021, but the SBA is urging businesses to file their applications as soon as possible before the funds are depleted.
If you have any questions about the COVID EIDL program or any other matters, please do not hesitate to contact your Kreischer Miller professional or any member of our team.
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