SBA Pandemic Loan Deadlines Approaching
Deadlines for certain U.S. Small Business Administration pandemic-recovery loans are fast approaching.
Small businesses applying for the Supplemental Targeted Advance are encouraged to submit applications by Dec. 10. The SBA will not process or accept applications received after Dec. 31.
The federal small business loan programs are designed to support recovery from the pandemic’s impacts through accessible and borrower-friendly capital.
Economic Injury Disaster Loan
Small businesses, including agricultural businesses and nonprofit organizations, can apply for COVID-19 EIDL financing.
The loan provides working capital to businesses to meet operating expenses, which can include payroll, rent, mortgage, utilities, and other ordinary business expenses. It can also be used to pay debt.
Unlike the SBA’s Paycheck Protection Program loans, an EIDL is not forgivable.
Businesses can borrow no more than $2 million. Interest rates for businesses are fixed at 3.75% for 30 years, while private nonprofit organizations have a 2.75% fixed interest rate.
Interest will accrue immediately, but payments are deferred for the first two years. Payments of principal and interest can be made over the remaining 28 years.
Small businesses that already received a COVID-19 EIDL loan may apply for a loan increase.
Targeted EIDL Advance and Supplemental Targeted Advance grants offer hard-hit businesses and private nonprofits funding that does not require repayment.
Interested organizations must first apply for the COVID-19 EIDL grant, but do not have to wait to be approved before applying.
The SBA will email EIDL applicants that are located in low-income areas.
Eligible applicants can receive up to $15,000 from the two advance grant programs.
Businesses located in a low-income community, with 300 or fewer employees, that can demonstrate reduction in revenue greater than 30% over an eight-week period are eligible for the Targeted EIDL Advance grant.
A Supplemental Targeted Advance applies to businesses with fewer than 10 employees, that can prove an economic loss greater than 50%.
Applicants will need to provide gross monthly revenue from January 2019 to the current month.
EXPLORE BY CATEGORY
Stay Connected with CBIA News Digests
The latest news and information delivered directly to your inbox.