The Small Business Administration (SBA) announced enhancements to the COVID Economic Injury Disaster Loan (EIDL) Program. These enhancements include:
- increasing the EIDL cap from $500,000 to $2 million;
- implementing a deferred payment period, so that business owners will not have to begin
- repayment until two years after loan origination;
- establishing a 30-day exclusivity window for loans of $500,000 or less;
- expanding the eligible use of funds to include prepaying commercial debt and making payments on federal business debt; and
- simplifying affiliation requirements.
The purpose of EIDL is for small businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. Small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington, D.C., and territories can apply for the program. Business owners that 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.