On September 9, 2021, Administrator Isabella Casillas Guzman announced the following major enhancements to the COVID Economic Injury Disaster Loan (EIDL) program.
- Increasing the COVID EIDL Cap. The SBA will lift the COVID EIDL cap 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 debt.
- Implementation of a Deferred Payment Period. The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after loan origination so that they can get through the pandemic without having to worry about making ends meet.
- Establishment of a 30-Day Exclusivity Window. To ensure main street businesses have additional time to access these funds, the SBA will implement a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less. Approval and disbursement of loans over $500,000 will begin after the 30-day period.
- Expansion of Eligible Use of Funds. COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.
- Simplification of affiliation requirements. 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 enhancements to the COVID EIDL program will allow more businesses greater and more flexible support from the over $150 billion in available COVID EIDL funds. Additionally, these changes will help entrepreneurs access capital at a time when, according to a recent Goldman Sachs 10,000 Small Businesses survey, 44% of small business owners report having less than three months of cash reserves, and only 31% reporting confidence in gaining access to funding.
How to apply
To learn about eligibility and application requirements and how to apply, visit sba.gov/eidl. The last day that applications may be received is December 31, 2021. All eligible applicants should file their applications as soon as possible.
Please contact the GYF Tax Department if you have questions or need assistance with your EIDL or other COVID-relief programs.
Updates on SBA COVID-Relief Funding Options