For businesses still suffering the economic costs of the pandemic, here’s some good news for you: The U.S. Small Business Administration (SBA) is offering one more COVID-19 relief program for businesses trying to recover from closures and setbacks.
So far, the SBA has approved nearly $260 billion worth of loans through the COVID-19 Economic Inquiry Loan (EIDL) program.
The EIDL is a Federal small business loan program supports small businesses’ recovery from the COVID-19 disaster’s economic impacts by providing accessible and borrower-friendly capital.
Applications for the EIDL must be submitted in English. On their website, the EIDL provides documents in 17 different languages to help you understand eligibility requirements, fill out applications, and answer frequently asked questions.
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Small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for the COVID-19 Economic Injury Disaster Loan (EIDL).
As of September 8, 2021, new COVID EIDL policy changes have taken effect that entails the below updates to the program:
- The maximum loan cap increased from $500,000 to $2 million
- Use of funds was expanded to include payment and pre-payment of business non-federal debt incurred at any time (past or future) and payment of federal debt
- Extend the deferment period to 24 months from origination for all loans (existing loans with a less than 24-month deferment will be adjusted)
- Affiliation requirements simplified to an affiliate is a business that you control or in which you have 50% of more ownership
- Developed additional path to meet program size standards for businesses assigned a NAICS code beginning with 61, 71, 72, 213, 3121, 315, 448, 451, 481, 485, 487, 511, 512, 515, 532, or 812
- Exclusivity Period: From September 8, 2021 to October 8, 2021, the above policy changes will be applicable to applications for <$500K while applications for >$500K will not be approved and therefore receive the policy changes until October 8, 2021.
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If the small business is a first-time COVID EIDL applicant, here are the following steps to apply:
- Confirm eligibility (review FAQs and below Loan Eligibility section).
- Complete Intake Form.
- Sign up to create portal username via SBA email invite.
- Complete portal steps and submits relevant documents.
- Respond to SBA requests for signature, confirmation, and documents.
The average SBA decision timeline for $500,000 or under is several weeks.
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However, if the small business has already obtained a loan via COVID EIDL before, complete the following steps to apply for a loan increase:
- Confirm Eligibility.
- Log onto Account on SBA Portal (do not apply for another loan) to submit loan modification.
- Complete portal steps and submits relevant documents.
- Respond to SBA requests for signature, confirmation, and documents.
The average SBA decision timeline for $500,000 or under loans is several weeks.
Applicants should also look out for fraud and ID theft. Stay safe when applying! And stay tuned with us to get more news and updates.
