SBA Extends EIDL Loan Application Deadline Thru End of 2021



EIDL Loan Application Deadline

The Small Business Administration (SBA)has announced the extension of the deadline for businesses to apply for the Economic Injury Disaster Loan (EIDL) program to December 31, 2021. The new deadline extension for the second round of EIDL funding comes after the second COVID-19 relief bill of $900 billion was signed into law on December 27th, 2020.



SBA Extends EIDL Loan Application Deadline

The extension of the deadline is expected to assist small businesses access loans affected by disaster including flooding, wildfires and COVID-19. The EIDL Grant program was part of a new provision in the March 2020, $2.2 trillion COVID-19 relief bill. Under that bill, small businesses were eligible to receive up to $10,000 in emergency funds. 

Through EIDL some $197 billion is available for working capital funds to small businesses, non-profits, and agricultural businesses in low-interest loans.

Key Provisions

  • As part of the EIDL an advance of up to $10,000 is available for those who apply for the EIDL. Small businesses will get $1,000 per employee and it is available for up to 10 employees or $10,000. 
  • Loans come with a 3.75% interest rate for small businesses. It includes 30-year maturity and an automatic deferment of one year before monthly payments begin.
  • Since the declaration of the COVID-19 Pandemic, the SBA has approved over 3.6 million loans through the EIDL program.
  • Businesses can use the loan for working capital and operating expenses. This includes the continuation of health care benefits, rent, utilities, and fixed debt payments.
  • To be eligible for the loan businesses should provide collateral for over $25,000. Collateral can be machinery and equipment, furniture and fixtures, and others. 

COVID-19 Relief for Small Business 

The extension of EIDL will help businesses navigate through the uncertain economic waters the world is facing now. With it, businesses can use the loan for paying payroll, rent, mortgage, vehicle leases, and other bills they would have been able to pay if not for the COVID-19 pandemic. 

Prior to the CARES Act’s enactment, the SBA had about $1.1 billion in disaster loan credit subsidy available. This was to support about $7 billion to $8 billion in disaster loans. The SBA has announced payments on new EIDL loans would be deferred for one year with interest being accrued.

Image: Depositphotos.com



7 Comments ▼

Samson Haileyesus Samson Haileyesus has several years of progressive experience in media, communication and PR working with government, NGOs and private sector. He is passionate about public outreach, branding, media relations and marketing.

7 Reactions
  1. Sorry, but your facts need to be checked. Nowhere in this bill is $1000 per employee mentioned. It says $10,000 and, yes, the interpretation of such will be up to the SBA. But the $1000 per employee at the last round of funding was a (mistaken) decision by Carranza, which was later questioned by Jackie Rosen in the Senate.

  2. Government shuts us down and on the other end makes money on loans to us – seriously? I must not understand something…..

  3. Please notify me when application are being excepted

  4. The ads pnm your page make it impossible to read a full article never visiting this site again!

  5. I hope this is in response to the above article regarding EIDL loans and it’s requirements. I am a sole proprietor getting back on my feet with a new startup. Devastated from embezzlement and take over of my last business from my ex business partner, i have since gotten back on my feet and created a new business as sole proprietor. This new venture is to secure myself and donate a percentage of proceeds to help families and their dogs with cancer. I am a minority of hispanic descent, with no family or capital/colateral. Only determination and a dream. Since, on paper, I do not fall into a specific “approved” catagory, I am finding myself over looked by federal, unemployment, PPP, and now EIDL due to lack of prior years income and/or collateral. It seems that these assistance programs have been put in place for the those parties ( generalization & observance only) who already have some sort financial backup ( family/savings) and are able to implement with or without these programs. I feel discouraged, defeated, and helpless as I witness all of the years of struggle towards success again, crumble right in front of me no fault of my own. Where and how does someone in my situation find guidance and assistance to qualify for? My entire life is revolved around the success of my business, so there is no question as to where funds will be 200% applied towards. Please advise…

    • Go to the SBA and they will help u. When I started my business they did projection for 10 year and found out I needed 27,100. This was great because they gave me guidance and a loan. They suggested to rent a small are in my business. This is now 10 years into it. It has been successful.

  6. so now that 10 months are passed and the small eidl loan capitol exhauted. is there a second eidl loan? i only grossed 10-12% in 2020 of what my 2019 income was.

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