The federal small business loan program has updated its COVID Economic Injury Disaster Loan (EIDL) policy to assist small businesses in recovering from the COVID-19 disaster.
This program offers small businesses low-interest fixed rate long-term loans providing borrowers with working capital to meet ordinary and necessary operating expenses.
As of September 8, 2021, new COVID EIDL policy changes have taken effect that entails the below updates to the program:
- Maximum loan cap increased from $500,000 to $2 million
- Use of funds was expanded to include payment and pre-payment of business non-federal debt incurred at any time (past or future) and payment of federal debt
- Extend the deferment period to 24 months from origination for all loans (existing loans with a less than 24-month deferment will be adjusted)
- Affiliation requirements simplified to an affiliate is a business that you control or in which you have 50% of more ownership
- Developed additional path to meet program size standards for businesses assigned a NAICS code beginning with 61, 71, 72, 213, 3121, 315, 448, 451, 481, 485, 487, 511, 512, 515, 532, or 812
- Exclusivity Period: From September 8, 2021 to October 8, 2021, the above policy changes will be applicable to applications for <$500K while applications for >$500K will not be approved and therefore receive the policy changes until October 8, 2021
- See more details on the COVID-19 September 8, 2021 Policy Changes.
Loan details including terms and interest rates, as well as additional information on how to apply and a link to frequently asked questions, can be found below:
Click Here for Further Loan Details