The U.S. Small Business Administration has reopened its Economic Injury Disaster Loan and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19.
“The SBA is strongly committed to working around the clock, providing dedicated emergency assistance to the small businesses and nonprofits that are facing economic disruption due to the COVID-19 impact,” SBA Administrator Jovita Carranza said in a statement this week. “With the reopening of the EIDL assistance and EIDL Advance application portal to all new applicants, additional small businesses and nonprofits will be able to receive these long-term, low-interest loans and emergency grants — reducing the economic impacts for the businesses, employees and communities they support.”
The EIDL program loans can provide vital economic support to help alleviate temporary loss of revenue. EIDL assistance can be used to cover payroll and inventory, pay debt or fund other expenses. In addition, the EID Advance will provide up to $10,000, or $1,000 per employee, of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid.
“Since EIDL assistance due to the pandemic first became available to small businesses located in every state and territory, SBA has worked to provide the greatest amount of emergency economic relief possible,” Carranza said. “To meet the unprecedented need, the SBA has made numerous improvements to the application and loan closing process, including deploying new technology and automated tools.”
To keep EIDL loan payments affordable for small businesses, SBA offers loans with long repayment terms, up to a maximum of 30 years, and the first payment is deferred for one year. The interest rate for small businesses is 3.75 percent and 2.75 percent for nonprofits.