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COVID-19 Economic Injury Disaster Loan Enhancements for Small Business Communities

Picture of a waiter re-opening a small business restaurant in Texas after receiving the Restaurant Revitalization Fund

Huge news for small businesses communities still recovering from the pandemic: SBA Administrator Isabel Guzman revealed major enhancements to the COVID-19 Economic Injury Disaster Loan program.

Summary of COVID-19 EIDL key changes

Establishing a 30-day Exclusivity Window

The SBA implemented an exclusive 30-day window for approval and disbursement of funds for loans of 500,000 dollars or fewer; this ensures small businesses have more time to access the funds. For loans over 500,000 dollars, the approval and disbursement starts after the 30-day period.

Increasing the COVID-19 EIDL Cap

The SBA will raise the EIDL cap from 500,000 to 2 million dollars. You can use the loan funds for any ordinary operational expenses and working capital, including purchasing equipment, payroll and debt payment.

COVID-19 EIDL Deferred Payment Period Implementation

The repayment of the loan will start two years after its origination; this will ensure that small business owners can get through the pandemic without worrying about making ends meet.

Expanding EIDL Eligible use of Funds

The SBA now allows you to use the COVID EIDL for commercial debt prepayment and federal business debt payments.

The SBA now allows you to use the COVID EIDL for commercial debt prepayment and federal business debt payments.

EIDL Affiliation requirements simplication

The SBA has created simpler affiliation requirements (modeled after the Restaurant Revitalization Fund) to make the EIDL application process easier for you.

Has your accountant or CPA been in touch with you recently to review how these changes could benefit your business? If not, let’s jump on a free zoom call and I’ll provide you with a free assessment for your business:

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