Changes to Economic Injury Disaster Loan Program

September 20, 2021

Have you been idling when you could have been applying for EIDL funding? (See what I did there? Did you groan at a grown adult trying to be funny? All right, I’m done! For now..) Well, once again, changes have been made to the program, so you might want to get in gear and apply. 

The first big change is the increase in the borrowing limit from $500,000 to $2 million. Funds received can be used for operating expenses and working capital, which includes buying equipment, paying employees, and paying higher interest debt.

That last part is also a change: you can pay (and prepay) commercial debt with EIDL funding as well as using funds to make payments on federal business debt.

A deferred payment period is another change. Borrowers will now not have to begin repayment until two years after their loan origination. This is an effort by the SBA to help businesses get through the pandemic with less worry.

If you need another reason to apply now, the final change is the introduction of a 30 day Exclusivity Window, where anyone applying to borrow less than $500,000 has priority for approval and disbursement. Larger loans approval will begin once that window closes. You can still apply for smaller loans after the 30 days, but you won’t get priority.

If you need more information about applying or eligibility, you can visit the SBA website, which also has a link to the application. 

Don’t drop the ball on this opportunity and find yourself bawling on January 1. You’ll be left out in the cold if you wait until after the Yule. Okay, I am really done now. Seriously, you only have until December 31 to apply. Feel free to reach out if you have any questions!

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