The US Small Business Administration has extended the deadline for applying for pandemic economic disaster loans to December 31, 2021.
The agency said the $ 900 billion COVID-19 relief plan that Congress recently approved has extended the deadline.
An EIDL is a low-interest loan – 3.75% for small businesses, 2.75% for nonprofits – with terms of up to 30 years and the first installment deferred by one year.
Small businesses, farm businesses, and nonprofits with fewer than 500 employees can use an EIDL for payroll and inventory, to pay off debt, or to fund other expenses.
So far, the SBA has approved $ 197 billion of low-interest EIDLs that provide working capital to small and other struggling businesses.
“The EIDL program has helped millions of small businesses, including nonprofits, sole proprietors and independent entrepreneurs from a wide range of industries and industries to survive this very difficult economic environment. “SBA administrator Jovita Carranza said. in a report.
She encouraged all eligible small businesses request an EIDL to get the resources they need.
In addition to funding EIDLs, the new federal COVID relief program is setting aside $ 284 billion for a second round of Payroll Protection Program loans to help small businesses affected by the pandemic.
PPP loans are forgivable as long as a small business spends at least 60% of the loan on payroll to keep people employed, and the rest on rent, mortgage, utilities, and interest on existing debt. .
