U.S. SBA Updates Guidance for COVID-19 EIDL Program
The U.S. Small Business Administration updated its guidance for its COVID-19 Economic Injury Disaster Loan (EIDL) program. Since its inception, the COVID-19 EIDL program, a federal disaster relief loan designed to support small businesses still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms, and hotels, has approved nearly $300 billion in relief aid.
The SBA is providing the following updated guidance:
EIDL loan and targeted advance applications will be accepted until Dec. 31 and will continue to be processed after this date until funds are exhausted.
Supplemental targeted advance applications will be accepted until Dec. 31; however, the SBA may be unable to process some supplemental targeted advance applications submitted near the Dec. 31 deadline due to legal requirements. The SBA cannot continue to process supplemental targeted advance applications after Dec. 31 and strongly encourages eligible small businesses to apply by Dec. 10 to ensure adequate processing time.
Borrowers can request increases up to their maximum eligible loan amount for up to two years after their loan origination date or until the funds are exhausted, whichever is soonest.
The SBA will accept and review reconsideration and appeal requests for COVID-19 EIDL applications received on or before Dec. 31 if the reconsideration/appeal is received within the time frames in the regulation. This means six months from the date of decline for reconsiderations and 30 days from the date of reconsideration decline for appeals, unless funding is no longer available.
“The COVID Economic Injury Disaster Loan (EIDL) and EIDL Advance programs still have billions of dollars available to help small businesses hard hit by the pandemic. More than 3.8 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans,” Patrick Kelley, associate administrator for the SBA’s Office of Capital Access, said. “Key enhancements have been made to the loan program that will help our nation’s businesses recover and get back on track.”
In September, SBA Administrator Isabella Casillas Guzman announced enhancements to the EIDL program, including an increase of the COVID-19 EIDL cap from $500,000 to $2 million.