SBA extends EIDL loan application deadline
The extension of the deadline is expected to help small businesses access loans Influenced by Including disaster Floods, wildfires and COVID-19. The EIDL grant program was part of a new provision in March 2020 at $ 2.2 trillion COVID-19 relief bill. Under that bill, Small businesses were eligible to receive up to $ 10,000 in emergency funds.
Through EIDL, $ 197 billion is available for working capital funds for agricultural businesses in small businesses, nonprofits and low-interest loans.
- Up to $ 10,000 in advance is available to those applying for EIDL as part of EIDL. Small businesses will receive $ 1,000 per employee and are available for 10 employees or up to $ 10,000.
- The loan for small businesses comes with a 3.75% interest rate. This includes a maturity of 30 years and automatic moratorium of one year before the commencement of monthly payment.
- Since the announcement of the COVID-19 epidemic, the SBA has approved more than 3.6 million loans through the EIDL program.
- Businesses can use the loan for working capital and operating expenses. This includes health care benefits, rent, utilities and the continuation of fixed debt payments.
- To be eligible for loan businesses must provide collateral for more than $ 25,000. Collateral can be machinery and equipment, furniture and fixtures, and others.
COVID-19 Relief for Small Business
The expansion of EIDL will help businesses navigate through the uncertain economic waters the world is facing right now. with this, Businesses can use loans to pay payroll, rent, mortgages, vehicle leases, and other bills if they are able to pay for the COVID-19 epidemic.
Prior to the enactment of the CARES Act, the SBA had approximately $ 1.1 billion in disaster loan debt subsidies available. It was to support $ 7 billion to $ 8 billion in disaster debt. SBA has announced payment on new EIDL loans which will be deferred with interest for one year.