The Small Business Administration (SBA) has decided to make some changes to its Covid Economic Injury Disaster Loans (EIDL) that will take place from September 6.
The EIDL is a low-interest long term loan whose aim is to help those small businesses struggling due to the pandemic. Until now many businesses have benefit from it to compensate a loss on their revenue as a consequence of the pandemic.
The most important change is the increase of the cap, which, since March 2021, has been set at $500,000. This will make a big difference because before the implementation of these changes, the SBA was approving loans of up to $150,000.
However, not all businesses will benefit from this increase. To be able to apply, you need to show your total revenue from 2019 minus the cost of goods you sold, less any EIDL that you have received. Besides, you may need to demonstrate financial loss as well.
A large number of applications are expected, so all who decide to apply need to consider there may be delays. The sooner you do it, the better.
For more information you can visit:
Kassar, A. (September 6, 2021). “SBA to Increase EIDL Loan Amounts to $2 Million After Labor Day”. Multifunding [Available here]