As a consequence of the pandemic, many small businesses have been affected negatively. Therefore, the Small Business Administration (SBA) is preparing some changes to its Economic Injury Disaster Loan (EIDL) program. These changes imply that more businesses will be eligible to get funding and there will be more options on how they can spend that loan.
COVID-19 EIDL is a loan to help small businesses and nonprofit organizations to have relief after experiencing loss of revenue due to the pandemic.
Until now, restaurants have benefited from this funding, but the SBA has been working the past few months to increase this loan and more businesses will receive more funding.
LOAN ELIGIBILITY
The first big change to this funding is that now all small business owners and qualified agricultural businesses with 500 or fewer employees in the US are eligible.
Before this new interim rule, specific businesses were eligible to get this funding, but now other businesses like hotels, gyms, travel agencies, among others, can receive help due to a loss in their revenue.
To apply for the loan, it is necessary to fill out and sign Form 4506-T.
LOAN INCREASES
Another change is that the loan limit has been increased. All those businesses who already applied before this change can submit a new request to get an increase.
This change has been implemented because they expect a significant increase in the number of applications, and the SBA wants to offer more help to more businesses.
These new changes will be implemented and will be effective after September 8.
Post inspired by the following article:
Medici, A. (September 8, 2021) “SBA’s Economic Injury Disaster Loan program to see big changes. Here’s what you need to know.” Cleveland Business Journal [Available here]