EIDL Loan Programs Open to Eligible Small Businesses



Eligible Small Businesses

CORRECTION: A previous version of this report indicated the SBA Advance program was re-opened but that is no longer available, according to the SBA.

The Small Business Administration (SBA) has announced it has extended the Economic Injury Disaster Loan (EIDL) program portal to eligible businesses affected by the COVID-19 pandemic. Businesses can receive long-term, low-interest loans. This will help them recover from the disruptions that took place in their businesses. They can use the loan for paying rent, mortgage, vehicle leases, payroll, and other bills.

The second round of COVID-19 EIDL assistance also comes with improvements to the application and loan closing process. This includes deploying new technology and automated tools. The SBA has approved $197 billion through the EIDL for working capital funds to small businesses.



EIDL Loans Open to More Businesses

  • With the EIDL businesses can borrow up to $2 million to provide working capital for expenses such as fixed debt and payroll costs. Eligible applicants can also get up to $10,000 ($1,000 per employee) in funds of emergency economic relief to businesses that are currently experiencing temporary hardships.
  • The loans have an interest rate of 3.75% for small businesses. And to keep payments affordable they come with long repayment terms of up to a maximum of 30 years. This includes the deferment of the first payment for one year.
  • With EIDL businesses can borrow up to $200,000 without a personal guarantee.
  • First-year tax returns are not required, and approval can be based on credit score.
  • Loans of $25,000 or less require no collateral. For loans above $25,000, you can use general security interest in business assets. Collateral can be machinery and equipment, furniture and fixtures, and others.

More Covid-19 Relief in the Future?

Since the declaration of the COVID-19 Pandemic, the SBA has approved over 3.6 million loans through the EIDL program in the first round.  The deadline for the second round of EIDL runs until December 31, 2021. A further COVID-19 relief assistance amounting to $1.9 trillion is undergoing debate in Washington. This follows Congress’ previous passing of a $900 billion relief measure.

 

Image: Depositphotos.com

18 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.

18 Reactions
  1. Yes, I applied for a EDIL loan back IN JULY 2020 AND GOT APPROVED SND SIGNED ALL DOCUMENTS AND STILL HAVE NOT GOT FUNDED AMD MY BUSINESS IS SUFFERING. I STAY IN LOE INCOME SECTION ON TENNESSEE (MEMPHIS) AND CAN’T GET HELP

    • I fully understand where you’re coming from I did the same thing back in March got approved for the grant then they sent me the Nile for a loan that I never applied for I want have actually happened to shut my business down I wish you the best of luck in your endeavors

  2. This is false info when u go to Sba site the eidl advance is still closed

  3. Where do you report fraud on PPP covid small business grant?

  4. I need some help so bad for my business started in 2020 but yet to start from not having the capitol to pay for insurance. Tools.etc.

  5. EIDL will only be giving the advance to previous applicants. It is not available to new applicants. They will be reaching out to people who did not receive the advance before or who did not receive the full amount. You can find this information on the sba.gov website.

  6. The title of your article is incorrect. The Loan program is open but the Advance is still not available.

  7. It dosent say it’s giving grants on the site

  8. If you have less than a 570 credit score don’t apply. They will deny you. They are supposed to be more flexible criteria as its disaster relief. There is also a $10,000 grant that you can apply for. Yet they won’t tell you how. I’m talking to my Gov. Assistant to help me through this nightmare. I believe I was discriminated against due to being an NDN woman who is a member of the Cherokee Nation and all my employer are Cherokee Nation citizens as well.

  9. Nice way to gain exposure with clickbait. The link you posted in your article dates back to June 2020. Preying on people’s need in a time like this should make your manhood visible now.

  10. Hí Samson ,my name is Tom. I would like to make a loan for expanding my business. Can you help me to apply the SBA. Thank you very much !

  11. The press release linked in this article is dated June 17, 2020. The article is a copy and paste of that press release. Thus, this is irrelevant and a major disservice to be relaying out dated information.

  12. From what I have read the EIDL Grant’s are only open to people that had previously applied but did not get an advance because the money ran out,and new applicants are NOT being accepted, did this change?

  13. To overcome the covid 19 small business is the for success

  14. Can a business who already received the EIDL in the last go-round apply for another loan and is the advance/grant available also?

  15. What do you mean by 1st year tax returns not required?

  16. The loan process may be open but if you are a true small business they will deny you! My business applied for this loan in June of last year and we are still appealing denials stating that we did not suffer an economic hardship and now we’re being told that it’s based on credit but no info is being given on what they are looking for. The SBA is really not for true small businesses.

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