Business owners and nonprofit organizations can apply for the SBA Economic Injury Disaster Loan (EIDL), which provides financial assistance for small businesses to meet financial obligations and operating expenses that could have been met had the COVID-19 disaster not occurred. The deadline to apply is December 31, 2021; however, the SBA has issued application guidelines to ensure that everyone who could benefit from the program is able to access it before it ends.
Specifically, the following updated guidance has been issued:
- EIDL loan and Targeted Advance applications will be accepted until December 31 and will continue to be processed after this date until funds are exhausted.
- Supplemental Targeted Advance applications will be accepted until December 31; however, the SBA may be unable to process some Supplemental Targeted Advance applications submitted near the December 31 deadline, and it cannot continue to process Supplemental Targeted Advance applications after December 31 deadline. SBA strongly encourages eligible small businesses to apply by December 10 to ensure adequate processing time.
- Borrowers can request increases up to their maximum eligible loan amount for up to two years after their loan origination date, or until the funds are exhausted, whichever is soonest.
- The SBA will accept and review reconsideration and appeal requests for COVID EIDL applications received on or before December 31 if the reconsideration/appeal is received within the timeframes in the regulation. This means six months from the date of decline for reconsiderations and 30 days from the date of reconsideration decline for appeals – unless funding is no longer available.
Funds Still Available
According to the SBA, the COVID Economic Injury Disaster Loan (EIDL) and EIDL Advance programs still have billions of dollars available to help small businesses hard hit by the pandemic. In September, the program was enhanced to help hard-hit businesses access the program. Some key changes were:
- The COVID EIDL cap was increased from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying off debt.
- A deferred payment provision was implemented to give businesses two years after loan origination to begin making payments.
- Use of funds was expanded to include prepayment of commercial debt and make payments on federal business debt.
How to Apply
Eligible small businesses, nonprofits, and agricultural businesses in all U.S. states and territories can apply. Business owners that received previous loans through the SBA’s Paycheck Protection Program (PPP), Restaurant Revitalization Fund (RRF), or Shuttered Venue Operators Grant (SVOG) may still benefit from EIDL.
As noted above, the last day that applications may be received is December 31, 2021. Applications received by December 10 for Supplemental Advance will be processed in the order received and the SBA cannot guarantee processing of all applications by December 31. All applicants should file their applications as soon as possible to allow for processing.