The U.S. Small Business Administration (SBA) has announced enhancements to the COVID Economic Injury Disaster Loan (EIDL) program, a federal disaster relief loan designed to better serve and support our small business communities still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms and hotels.
The SBA increased the borrowing limit from $500,000 to $2 million, is offering 24 months of repayment deferment and expanding flexibility to allow borrowers to pay down higher-interest business debt. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment and paying debt.
To ease the EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund. The SBA is ready to receive new applications immediately from small businesses looking to take advantage of these new policy changes. The last day that applications may be received is Dec. 31, 2021.