At $200 billion, the COVID-19 Economic Injury Disaster Loan (EIDL) program has reached a noteworthy milestone. According to the Small Business Administration (SBA), to date, the EIDL program has provided U.S. small businesses, non-profits, and agricultural businesses this impressive sum. And the SBA says it is not done giving out the loans.
To that end, the SBA announced the extension of EIDL to December 31, 2021. The extension is part of the bipartisan COVID-19 relief bill passed by Congress and enacted by President Trump on Dec. 27, 2020. This means EIDL loan program will continue to accept applications through December 2021. And of course, it will depend on the availability of funds for the program.
EIDL Program Helps 3.7 Million Small Businesses During COVID
The $200 billion is responsible for 3.7 million businesses to keep operating, retain their employees and support their communities. Recipients of the loans can use the money from the EIDL program to pay fixed debts, payroll and expenses, accounts payable, and other bills they can’t pay.
In the release of the milestone announcement, Acting Administrator Tami Perriello, says more than 20 million people have been helped through the 3.7 million businesses. Adding, “SBA remains committed to helping small businesses recover from the unprecedented economic effects of COVID-19.”
The new Biden administration is in the process of passing a $1.9 trillion bill that will further help small businesses with additional funds. The plan calls for $15 billion to create a new grant program for small business owners in addition to PPP. And a $35 billion investment program with low-interest loans across different segments.
A proposed $15 per hour minimum wage increase is also part of the plan. This includes a call to end tipped minimum wage and the sub-minimum wage for people with disabilities.
Apply
If you want to apply for the COVID-19 EIDL loan, the SBA is still accepting applications until the extended deadline of Dec. 31, 2021. If you are a small business or a non-profit, you can get more information on EIDL and other economic recovery programs. This includes Paycheck Protection Program, SVO Grant Program, SBA Express Bridge Loan, SBA Debt Relief, and Cross Program Eligibility.
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I’m hopeful that they’re doing a better job of catching the cheats now. There were too many stories of fraud in the early going.
Small business need to grow.