On September 9, the U.S. Small Business Administration (SBA) announced changes to the COVID-19 Economic Injury Disaster Loans (EIDL) program, including raising the loan cap from $500,000 to $2 million.
Here are the key changes, effective immediately:
COVID-19 EIDL cap increased from $500,000 to $2 million. Proceeds from the loans can be used for normal operating expenses and working capital, such as purchasing equipment, paying business debt, and meeting payroll.
Eligible use of EIDL funds expanded. Funds from EDIL loans are now eligible to make payments on federal business debt and to prepay commercial debt.
Payment period deferred. Small business owners will not have to begin repaying EIDL loans until two years after the loan’s origination date.
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 give main street businesses more time to access the funds.
Simplified affiliation requirements. The SBA established more simplified affiliation requirements, modeling those of the Restaurant Revitalization Fund, to make the COVID EIDL application process easier for small businesses.
The deadline to apply for the EIDL loan is December 31, 2021. To learn more, please visit the SBA’s COVID-19 Economic Injury Disaster Loan Page.