9/11/2021
Candace J. Dixon
Small Business Administration (SBA) Administrator Isabella Casillas Guzman announced enhancements to the COVID Economic Injury Disaster Loan (EIDL) program on September 9, 2021:
Increasing the COVID EIDL Cap. The SBA is increasing the COVID 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.
Expansion of Eligible Use of Funds. COVID EIDL funds can now be used to prepay commercial debt and make payments on federal business debt.
Implementation of a Deferred Payment Period. The SBA will make sure that small business owners won't have to start repaying the COVID EIDL until two years after loan origination so they can get through the pandemic.
Establishment of a 30-Day Exclusivity Window. The SBA is implementing a 30-day exclusivity window to approve and disburse funds for loans of $500,000 or less to make sure that main street businesses have time to access the funds. Approval and disbursement of loans over $500,000 will start after the 30-day exclusivity window.
Simplification of affiliation requirements. The SBA has simplified affiliation requirements to model the Restaurant Revitalization Fund to make the COVID EIDL application process easier for small businesses.
You can find more information the SBA website here - sba.gov/eidl to learn more. The last day for applications is December 31, 2021.