COVID-19 Economic Injury Disaster Loan
On Sep 9, 2021, SBA announced the following major enhancements to the COVID Economic Injury Disaster Loan (EIDL) program increasing the loan cap from $0.5 mm to $2.0 mm. SBA also promised to prioritize the loans under $0.5 mm.
Key changes being announced for EIDL enhancement include:
- Increasing the COVID EIDL Cap: The SBA will lift the COVID EIDL cap from $0.5 mm to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying the debt.
- Deferred Payment Period: The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after the loan origination date so that they can get through the pandemic.
- 30-Day Exclusivity Window (for Loans under $0.5 mm): To ensure small businesses have additional time to access these funds, the SBA will implement a 30-day exclusivity window of approving and disbursing funds for loans up tp $0.5 mm. Approval and disbursement of loans over $0.5 mm will begin after the 30-day period.
- Expansion of Eligible Use of Funds: COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.
Please check the following website for additional details: