EIDL Loan Increase & Upcoming Tax deadline
The SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150K to up to 24-months of economic injury with a maximum loan amount of $500K. Here is what you need to know about the EIDL Loan increase:
Can I apply now?
Yes, The EIDL program, originally scheduled to end Dec. 31, 2020, has been extended through Dec. 31, 2021, SBA is currently accepting new EIDL applications from all qualified small businesses.
What can I use EIDL funds for?
EIDL funds can be used to cover almost any “business” expense including working capital and normal operating expenses e.g., health care benefits, rent, utilities, and debt payments.
Who is eligible for EIDL?
Applicant businesses must be physically located in the United States and suffered working capital losses due to the coronavirus pandemic, not due to a downturn in the economy or other reasons.
How do I apply for EIDL Increase?
The loan is applied directly through the SBA website. If you were approved for an EIDL loan earlier, you can go to the same SBA portal and request the loan increase. You can also send an email that states your need for an increase to the loan amount to email@example.com with the word “INCREASE” in the subject line. Include any additional information that may assist SBA in considering an increase for your application e.g., a signed IRS Form 4506-T and business financials.