For small business owners, the COVID-19 pandemic has proven particularly harmful.
But recently the U.S. Small Business Administration (SBA) has updated its guidelines for the COVID Economic Injury Disaster Loan (EIDL) Program, allowing applicants to get access to remaining funds.
Small business owners will have access to nearly $300 billion in relief through the COVID EIDL program, which is a federal disaster relief loan that will aid small business owners who are still reeling from the pandemic, such as restaurant, gym and hotel owners.
Applications accepted until December 31
Applicants have until December 31 to be eligible for an EIDL loan and Targeted Advance. The applications submitted by that date will continue to be processed until funds are exhausted.
While applicants have until December 31 for the Supplemental Targeted Advances, it is strongly suggested that those applications be submitted by Friday, December 10 in order for it to be processed in an adequate time frame.
Increases on loan, info on appeals
The SBA is also allowing borrowers the opportunity to request an increase to their maximum eligible loan for up to two years after the loan origination date, while those applicants whose request was denied are permitted to appeal and can be reconsidered up to six months from the date of decline.
This information is in light of the major enhancements announced by the SBA last September on the EIDL program, which included an increase in the COVID EIDL cap from $500,000 to $2 million, deferred repayment of two years, a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less, the ability to use funds to prepay commercial debt and make payments on federal business debt, and simplified affiliation requirements.
Overall, the changes and enhancements made by the SBA are to the benefit of the 3.8 million small business across the country that employ more than 20 million people.
How do you apply?
The next step for small business owners is to get their hands on the money to help get their business back on track. What do you do?
Those small business owners eligible can visit www.sba.gov/eidl to find out if they meet eligibility requirements and then submit their application.
The SBA cannot guarantee processing of all applications by the end of the year, so it is strongly encouraged that all applications be sent in by December 10.
Small business owners can also call the SBA’s toll-free Customer Service Center to speak with a representative from 8am-8pm ET at 1-833-853-5638.