September 2021 DBE Newsletter: Changes to EIDL Program to Help Small Businesses

The Small Business Administration (SBA) announced changes to the Economic Injury Disaster Loan (EIDL) program on September 9. Here is an overview of those changes:

Increased Loan Amounts Available – The COVID EIDL cap was increased to $2 million (previously $500,000). Businesses can use EIDL funds for any normal operating expenses or working capital, including payroll, equipment purchases, and paying business debt.
Longer Payment Deferrals – COVID EIDL loan payments will now be deferred for two years after loan origination.
30-Day Exclusivity Window for Loans of $500,000 or Less – The SBA will dedicate the first 30 days exclusively to approving and disbursing funds for loans of $500,000 or less.
Expanded Eligible Uses for Funds – COVID EIDL loans can now be used to prepay commercial debt and/or make payments on federal business debt.
Simplified Affiliation Requirements – To make the application process easier for small businesses, the SBA has simplified affiliation requirements.

The SBA will accept applications for the EIDL through December 31, but small businesses are encouraged to make use of the 30-day exclusionary window and apply as soon as possible.

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