Did you know that many small businesses can qualify for an Economic Injury Disaster Loan (EIDL), including sole proprietors and independent contractors?
With the Paycheck Protection Program ending in May of this year, the only available SBA loan currently available is the EIDL. Last week, SBA increased maximum loan amounts, extended deferment periods, and streamlined the application process.
Here are the three key changes:
- Maximum loan amount increased from $500,000 to $2,000,000
- Payments deferred for 24 months (previously 18 months)
- Funds may be used to make debt payments, include prepayments
EIDL funds cannot be used to expand your business but they can be used for your day-to-day expenses. As a result, this could free up other funds that could then be used for expansion or capital improvements.
Applications are due by December 31, 2021. Processing times range from three to nine weeks from the date of submission. SBA has also instituted an exclusivity period for loans that are less than $500,000 until October 8, 2021.
To learn more about the EIDL or for assistance with applying, please contact us. Our dedicated CARES Act Business Advisor is here to help you every step of the way.
If you're new to the Massachusetts Small Business Development Center, click here to request counseling and schedule an appointment. Counseling is confidential and there is no fee for our services.