The U.S. Small Business Administration has extended the deadline for pandemic-related Economic Injury Disaster Loan applications to Dec. 31, 2021.
The agency said the $900 billion COVID-19 relief package that Congress recently approved allowed the extension of the deadline.
An EIDL is a low interest loan—3.75% for small businesses, 2.75% for nonprofits—with terms up to 30 years and the first payment deferred for one year.
Small businesses, agricultural businesses, and nonprofits with fewer than 500 employees can use an EIDL for payroll and inventory, to pay debt, or fund other expenses.
So far, the SBA has approved $197 billion in low-interest EIDLs that provide working capital to struggling small businesses and other ventures.
“The EIDL program has assisted millions of small businesses, including nonprofit organizations, sole proprietors, and independent contractors from a wide array of industries and business sectors to survive this very difficult economic environment,” SBA Administrator Jovita Carranza said in a statement.
She encouraged every eligible small business to apply for an EIDL to get the resources they need.
In addition to funding EIDLs, the new federal COVID relief package sets aside $284 billion for a second round of Payroll Protection Program loans to help small businesses hurt by the pandemic.
PPP loans are forgivable providing a small business spends at least 60% of the loan on payroll to keep people employed, and the remainder on rent, mortgage, utilities, and interest on existing debt.