![]() Expanded eligibility to businesses in industries most affected by the pandemic (industries listed using the North American Industry Classification System (NAICS) codes).Simplified affiliation requirements: You are considered an affiliate of any business you control or have at least 50 percent ownership in.The first payment is now automatically deferred to 30 months (this update came in March 2022).You can now use funds to pay for regularly scheduled federal debt payments.You can now use funds to pay for payment or prepayment of commercial business debt.The maximum loan cap increased from $500,000 to $2 million.Personal Guaranty: Required for loans greater than $200,000Īt the start of September 2021, the SBA published updates to its COVID EIDL program, including a loan cap increase.Collateral: Required for loans greater than $25,000.Payment deferment: Automatically deferred for 30 months with interest accruing during the deferment period.Interest rate: 3.75% fixed for businesses 2.75% fixed for private nonprofit organizations.Here’s a refresher of the loan terms in the EIDL program: Unlike the Paycheck Protection Program (PPP), the EIDL is a loan and must be repaid. The COVID EIDL loan program stopped taking new applications on December 31, 2021, however you can still apply for an increase up to your maximum eligible loan amount. citizens, non-citizen nationals, or qualified aliens with a social security number. Owners, members, or partners that own more than 20 percent of the business must be U.S.The business must have a valid IRS-issued Taxpayer Identification Number (TIN).The business must have been in operation on or before January 31, 2020.Here are some additional eligibility requirements: To be eligible for the program, your business must be physically located in the United States and have experienced working capital losses due to COVID-19. You can view the complete list of qualifying industries by their NAICS codes on the loan eligibility screening page. Some businesses in industries that were the most impacted by the pandemic were allowed to apply for the program even if they had more than 500 employees. ![]() The SBA defines a small business as a business or agricultural enterprise with fewer than 500 employees, including affiliates. If you’re awarded funds through an EIDL loan program, you could spend those on working capital and regular expenses like healthcare benefits and rent. The initial COVID-19 EIDL program offered coverage for up to 24 months of economic injury, with a maximum loan cap of $500,000. It’s intended to help small businesses cover operating expenses and other financial obligations that they’re unable to meet because of a pandemic or natural disaster. So, how do you apply for an EIDL loan increase?Īn EIDL loan is a long-term low-interest loan from the U.S. If you don't have one, unfortunately the SBA is no longer accepting new applications for EIDL loans. Note: Only businesses that already have an EIDL loan can request an increase. The SBA expects funds to run out by mid-April 2022, so now is the time to request that increase. You can request an EIDL loan increase for up to two years after your loan date, or until the funds are exhausted. The updates include an EIDL loan increase and more flexibility when using the funds. Small Business Administration announced a change to EIDL. COVID-19 Economic Injury Disaster Loan (EIDL) is one of them. The federal government created several programs to help small businesses recover from the economic impact of the virus throughout the pandemic. If you’re a small business owner struggling to stay afloat because of COVID-19, you may be eligible for borrower-friendly funds from the government. You can no longer request loan increases at this time, but you can read on to get more acquainted with program in case it ever comes up again. Update May 6, 2022: EIDL loan funds have been exhausted.
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