![]() ![]() In this update, the SBA extended the deferment period to 30 months. Furthermore, as of May 16, 2022, the online EIDL portal has been closed (those who need copies of their loan documents should call 83).Īnother important update to be aware of is a new payment deferment that took effect in March of this year. For those who requested a loan prior to that date, the deadline to process loan increase requests or requests for reconsideration was May 6, 2022. First, as of January 1, 2022, the Small Business Administration (SBA) stopped accepting new applications for the loan. Now that we are officially out of the pandemic, it is important to be aware of the updates to the EIDL Program and the deadlines attached to it. Implemented by the Small Business Administration, this program was designed to support the recovery of small businesses from the economic impacts of COVID-19.These loans were attractive to many, as they were designed to be low-interest, fixed rate loans for business owners to cover the expense of business operation (payroll, rent, utilities, etc.). Contact us.Updates to the EIDL Loan by Danielle Stubbsĭuring the pandemic, many small businesses took advantage of the EIDL Program (COVID-19 Economic Injury Disaster Loan). Wondering if you can benefit? We can help you navigate the loan request process. Business owners should also find out what other loan terms their existing banking relationship can provide before going forward with an EIDL loan or requesting an increase as they may be able to provide more flexible terms and conditions. Proceeds from EIDLs are restricted to working capital purposes and have restrictive covenants that the business must follow to be in compliance with the loan agreement. Businesses that applied in 2020 have a 24 month deferment and new businesses that apply in 2021 will have an 18 month deferment period.īefore applying for an EIDL loan increase or an EIDL loan in general, business owners should consider whether the loan makes sense for their business. The first payment date for all loans is pushed to 2022. The deferment period has increased as well. Yes, businesses that did not take a loan yet are also eligible for the $500,000. It may be several weeks before you receive a response due to the high volume of requests expected.Īre businesses that did not take out a loan eligible for the increased loan amount? The SBA will process increase requests in the order they are received. How soon will you hear back from the SBA? The invitation email will be sent to the original email address that you used during the original application process. The SBA will automatically review your prior application and email you instructions on how to request an increase to your existing EIDL if you qualify. For any loans of $500,000 or less, real estate collateral will not be required. Also, the SBA will require an unsecured personal guarantee for loans over $200,000 from any individual with 20% or more ownership. Note that for loans over $25,000, the SBA will continue taking a security interest in business assets. A recent policy change increases loan limits up to 24 months of economic injury, with loan amounts up to $500,000. ![]() ![]() The program previously limited the coverage to six months of economic injury, to not exceed $150,000. The Economic Injury Disaster Loan program provides low interest loans to small businesses (those with 500 employees or less) and nonprofit organizations to help offset revenue loss due to COVID-19. Here’s what you need to know about the new loan limits. Did you receive an economic injury disaster loan (EIDL) from the Small Business Administration (SBA)? While these loans were previously limited to $150,000, the SBA recently announced the limit has been increased to $500,000. ![]()
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