Economic Injury Disaster Loan (EIDL) Program Extended
The recent Coronavirus Response and Relief Supplemental Appropriations Act extended the Economic Injury Disaster Loan (EIDL) Program application deadline through December 31, 2021, offering loans of six months of working capital at an interest rate of 3.75% for small businesses and 2.75% for non-profits, and a maximum term of 30 years. The loans may be used to pay debts, payroll, inventory, accounts payable, and other expenses not already covered by a Paycheck Protection Program loan. Additionally, the first payment is deferred for one year.
This legislation also included EIDL Advance grant distributions of $10,000 for eligible small businesses and nonprofits in low-income communities that did not previously secure these allocations, or the difference between what the entity received under the CARES Act and $10,000 if they received some prior EIDL advance funding. Additionally, the EIDL advance grant amount no longer needs to be deducted from their Paycheck protection Program (PPP) forgiveness amount. These grant distributions are not contingent on loan approval or acceptance and no additional information is required beyond the initial EIDL program application.
The Pace University Small Business Development Center (SBDC) will distribute further information regarding eligibility and application for EIDL advance grant funds when provided by the US Small Business Administration (SBA), the Federal agency that manages this program. In the meantime, please email the Pace SBDC Business Advisor team at email@example.com with any questions.