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Small Business Association Improves COVID Economic Injury Disaster Loan

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Small Business Association Improves COVID Economic Injury Disaster Loan

Posted: Oct 14 2021
Small Business Association Improves COVID Economic Injury Disaster Loan
As part of President Joe Biden’s recently announced COVID-19 Action Plan, the Small Business Administration (SBA) has improved the COVID Economic Injury Disaster Loan (EIDL) program to better meet the needs of small businesses, especially those hardest hit industries and smallest entities that still need relief.

The low-interest and long-term COVID EIDL program has helped millions of small business owners survive the impacts of the pandemic with its flexibility and affordability allowing entrepreneurs to hire and retain employees, and purchase needed equipment and inventory. Now, the program is even more flexible to meet small business needs.

• The SBA has increased the amount of funding that can be borrowed from $500,000 to $2 million for qualified applicants.

• They have authorized COVID EIDL funds to be used to pay and prepay commercial debt and make payments on federal business debt in recognition of the financial reality many small businesses are facing during this crisis.

• Small businesses will now have more time to recover from COVID-19 impacts by further deferring payments repayment of these loans won't need to start for two years after your loan origination date.

• In addition, to help ensure the smallest businesses can access this crucial capital, the SBA created a one-month exclusive window for businesses requesting $500,000. During this time, approvals and disbursements will focus 100% on loans $500,000 or less until October 8th, upon which approvals and disbursements will be opened up to all loan sizes.

• Finally, to ease the COVID EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund.

The SBA’s commitment is to serve all our small businesses efficiently while also maintaining strong protections against fraud and abuse, and as such they have worked hard to improve operations. They are also dedicated to improving customer service response and the application user experience. As of today, the SBA has increased COVID EIDL application processing capacity from an average of 2,000 to more than 37,000 applications per day.

The SBA will continue to accept applications for the COVID EIDL program until December 31, 2021 or until funds run out. Small businesses are encouraged not to delay and apply today, as well as forward this email to any fellow business owners who may qualify for the program.

* Please note all business owners who have received previous loans through the SBA’s Paycheck Protection Program (PPP), Restaurant Revitalization Fund (RRF), or Shuttered Venue Operators Grant (SVOG) can still benefit from COVID EIDL. For no-cost assistance for the COVID EIDL program, and every other SBA program, go to www.sba.gov/local-assistance and connect with a local resource partner near you.
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