- Economic Injury Disaster Loan program has approved $200 billion for businesses
- Eligibility was expanded due to COVID-19
- Applications for the program continue to be accepted through the end of the year
Emergency funding to businesses impacted by the COVID-19 pandemic has reached the $200 billion milestone, the U.S. Small Business Administration has announced.
The SBA says Economic Disaster Injury Loan program has assisted 3.7 million small businesses, nonprofits, and agricultural businesses employing more than 20 million people.
Economic Injury Disaster Loans, which predate the pandemic and were originally set up to assist businesses recovering from hurricanes and other disasters. Eligibility was expanded to all qualifying businesses after the pandemic. The loans are offered at 3.75 percent for businesses or 2.75 percent for nonprofits, have a 30-year term, and can be used for working capital or operating expenses.
Targeted EIDL Advance grants of up to $10,000 are available to qualifying businesses that are located in a low-income community, have 300 or fewer employees, and have suffered a revenue loss of more than 30 percent. The funds can be used to pay fixed debts, payroll and expenses, accounts payable and other bills that a company is unable to pay due to the impact of the pandemic.
The EIDL grants were one of several relief programs set up under the SBA to assist businesses who have suffered losses during the pandemic. These include the Paycheck Protection Program, debt relief options, and a grant for arts and cultural organizations that have been largely shuttered during the pandemic.
The EIDL program received an additional $20 billion in funding under an economic stimulus bill passed in December. Applications for the program are being accepted through Dec. 31.
