Law & Order

SBA Extends COVID-19 Economic Injury Disaster Loan Program Through End of 2021

By SEMA Washington, D.C., Staff

The U.S. Small Business Administration (SBA) will be accepting applications for the Economic Injury Disaster Loan (EIDL) program for businesses adversely impacted by COVID-19. The U.S. Congress approved, and President Trump signed into law a stimulus package that provides another $20 billion for the EIDL program and extends the program through December 31, 2021 (subject to availability of funds).

The SBA issued 3.6 million EIDL loans totaling $197 billion to provide working capital and to cover normal operating expenses in 2020. The loans are available to small businesses, non-profits, sole proprietors and independent contractors. The loans have a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin. Please note, the EIDL Advance program is no longer available—a forgivable grant program that provided $1,000/employee, up to $10,000.

For more information, visit the SBA website.