SBA Quadruples EIDL Loan Amount For Pandemic-Impacted Businesses
As the U.S. Chamber of Commerce reported, small businesses are now eligible for additional financial assistance because of several major enhancements that are being implemented as part of the U.S Small Business Administration’s (SBA) COVID Economic Injury Disaster Loan (EIDL) program. Effective immediately, businesses can apply for loans of up to $2 million. The previous cap was $500,000.
As part of the loan enhancements, repayments can now be deferred for 24 months from the date they were issued. The SBA also announced a 30-day exclusivity period during in which loans of $500,000 or less will be reviewed, approved, and distributed, allowing for easier and more immediate access to a share of the estimated $150 billion in funds available for capital and operating expenses including payroll, equipment purchases, and paying off debt. EIDL funds also now will be approved for pre-paying commercial debt and to alleviate federal business debt.
A detailed outline of the key changes, important dates and guidance on how to apply is available on the SBA website.