*The original article posted on June 16, 2020 has been updated to reflect changes as of March 24, 2021.
On June 15, 2020, the U.S. Small Business Administration (SBA) reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19.
The reopening is an effort to help U.S. small businesses and non-profits receive long-term, low interest loans and emergency grants. These loans can provide vital economic support to help reduce the economic impact for borrowers. EIDL assistance can be used to cover expenses usually paid for with business revenues. The EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid. On March 15, 2021, the SBA announced that it will defer repayments of EIDL loans for 24 months for loans made in 2020 and 18 months for loans made in 2021, instead of the original 12 month deferral period. In addition, the SBA announced it is increasing the maximum amount small businesses and non-profits can borrow through the EIDL program. Starting the week of April 6, 2021, the SBA will raise the loan limit from six months of economic injury with a maximum loan amount of $150,000 to up to 24 months of economic injury with a maximum loan amount of $500,000. Borrowers do not need to contact the SBA regarding increases. Rather, the SBA will contact borrowers directly via email directing borrowers on how an increase can be obtained. See SBA alerts Part One, Part Two, Part Three, Part Four, Part Twenty-Seven, Part Thirty-One, and Part Forty-Two for more information about the EDIL loans.
For further information, please contact any member of Taft’s SBA Task Force.
Please visit our COVID-19 Toolkit for all of Taft’s updates on the coronavirus.