Applicants for certain U.S. Small Business Administration loans are urged to submit applications ahead of a Dec. 31 deadline to ensure adequate processing time.
The SBA is accepting COVID Economic Injury Disaster Loan program applications and Targeted Advance applications until Dec. 31. Those applications will continue to be processed after that date until funds are exhausted; however, Supplemental Targeted Advance applications cannot be processed after Dec. 31, according to a news release. The SBA is encouraging those applicants to apply by Dec. 10.
Since the COVID EIDL program’s inception, it has approved nearly $300 billion in federal aid to sectors hit hard by the pandemic, including restaurants, hotels and gyms, according to the release.
“The COVID Economic Injury Disaster Loan and EIDL Advance programs still have billions of dollars available to help small businesses hard hit by the pandemic,” said Patrick Kelly, associate administrator for SBA’s Office of Capital Access. “More than 3.8 million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans. Key enhancements have been made to the loan program that will help our nation’s businesses recover and get back on track.”
Enhancements announced in September included increasing the COVID EIDL cap from $500,000 to $2 million and allowing funds to be used for any normal operating expenses, along with a deferred payment period that delayed repayments until two years after loan origination. The SBA also implemented a 30-day exclusivity window for approving and disbursing funds for loans of $500,000 or less.
Eligible small businesses and nonprofits in all U.S. states and territories can apply for the loans. More information is available by calling SBA’s Customer Service Center at 1-833-853-5638 (855-440-4960 for the deaf and hard-of-hearing) or emailing DisasterCustomerService@sba.gov. Small business owners may also contact SBA’s Resource Partners by visiting www.sba.gov/local-assistance.