The US Small Business Administration has extended the deadline to apply for the Economic Disaster Loan Program for COVID-19 damage to the end of 2021. The most recent deadline was Thursday, December 31.
The extension to December 31, 2021 – or until funding runs out – came after an additional $ 20 billion was included in pandemic relief legislation enacted this week.
Since the pandemic was declared a disaster in March, the SBA has approved 3.6 million loans, worth $ 197 billion. In Maine, the SBA, as of Dec. 17, has granted EIDL loans to 10,416 companies for a total amount of $ 597,433,800, according to the Congressional Research Service.
The program is available to small businesses that have been affected by the pandemic, as they cannot meet their obligations or pay their operating expenses and have been denied credit elsewhere. Applicants can also get a PPP loan, but the money cannot be used for the same things.
The SBA published an FAQ on the program in November, and more information could come in the near future, as the recent relief program changed not only the EIDL program, but also PPP and others, officials said. .
The loans have an interest rate of 3.75% for businesses and 2.75% for nonprofits, a 30-year term and an automatic deferral of one year before the start of monthly payments.
Businesses and agribusinesses that apply must be a “small business” as per SBA guidelines, meaning 500 employees or less, sole proprietorship (with or without employees), independent contractors, cooperatives, owned businesses. to tribal employees or businesses.
Eligibility for EIDL also includes small agricultural cooperatives, small aquaculture enterprises and nurseries deriving more than 50% of their annual revenues from the production of nurseries or other agricultural products. Private non-profit organizations of any size are also eligible.
Loans can go up to $ 2 million to help meet financial obligations and operating expenses that might have been covered had the disaster not occurred. The amount is based on the actual economic damage and the financial need of the business.
“The EIDL program has helped millions of small businesses, including nonprofits, sole proprietors and independent entrepreneurs, across a wide range of industries and lines of business, survive this economic environment. very difficult, âsaid administrator Jovita Carranza in a press release announcing the extension.
Businesses can get more information and apply at covid19relief.sba.gov.