COVID EIDL Program Enhanced to Aid Small Busine

Kansas City District Office  - September 2021

u s small business administration
EIDL

 

SBA's COVID EIDL Loan Program Changes

The U.S. Small Business Administration has announced major enhancements to the COVID Economic Injury Disaster Loan Program, a federal disaster relief loan designed to better service and support our small business communities still reeling from the effects of the pandemic.

“The SBA’s COVID Economic Injury Disaster Loan program offers a lifeline to millions of small businesses who are still being impacted by the pandemic,” SBA Administrator Isabella Casillas Guzman said. “We’ve retooled this critical program – increasing the borrowing limit to $2 million, offering 24 months of deferment, and expanding flexibility to allow borrowers to pay down higher-interest business debt. We have also ramped up our outreach efforts to ensure we’re connecting with our smallest businesses as well as those from low-income communities who may also be eligible for the companion COVID EIDL Targeted Advance and Supplemental Advance grants totaling up to $15,000.  Our mission-driven SBA team has been working around the clock to make the loan review process as user-friendly as possible to ensure every entrepreneur who needs help can get the capital they need to reopen, recover and rebuild.”

Key changes being announced by the SBA include:

  • Increasing the COVID EIDL Cap. The SBA will lift the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.
  • Implementation of a Deferred Payment Period. The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after loan origination so that they can get through the pandemic without having to worry about making ends meet.
  • Establishment of a 30-Day Window. To ensure Main Street businesses have additional time to access these funds, the SBA will implement a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less. Approval and disbursement of loans over $500,000 will begin after the 30-day period.
  • Expansion of Eligible Use of Funds. COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.
  • Simplification of Affiliation Requirements. To ease the COVID EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund.

The enhancements to the COVID EIDL program will allow more businesses greater and more flexible support from the over $150 billion in available COVID EIDL funds. Additionally, these changes will help entrepreneurs access capital at a time when, according to a recent Goldman Sachs 10,000 Small Businesses survey, 44 percent of small business owners report having less than three months of cash reserves, and only 31 percent reporting confidence in gaining access to funding.

How to apply

Eligible small businesses, nonprofits, and agricultural businesses in all U.S. states and territories can apply. Visit www.sba.gov/eidl to learn more about eligibility and application requirements. The last day that applications may be received is December 31, 2021. All applicants should file their applications as soon as possible.

For additional information on COVID EIDL and other recovery programs please visit www.sba.gov/relief. Small business owners may call SBA’s Customer Service Center at 1-800-659-2955 (1-800-877-8339 for the deaf and hard of hearing) or email DisasterCustomerService@sba.gov for additional assistance. The center is open Monday through Friday from 8 a.m. to 8 p.m. EST. Multilingual representatives are available. Small business owners may also contact SBA’s Resource Partners by visiting www.sba.gov/local-assistance.

 

Illustration of a main street & the following text, National Small Business Week, September 13-15, 2021, celebrating resilience & renewal

 

The U.S. Small Business Administration’s National Small Business Week Virtual Summit event schedule is set. This annual event, happening September 13-15, 2021, honors the nation’s 31 million small businesses for their perseverance, ingenuity, triumphs, and creativity.

SBA Administrator Isabella Casillas Guzman announced National Small Business Week in a news release last month. The free, three-day conference will take place in a virtual atrium, which will showcase a series of educational panels on best practices for small businesses to pivot and recover in a changing economy.

This year’s theme is “Celebrating Resilience and Renewal,” spotlighting the resilience of America’s entrepreneurs and the renewal of the small business economy as they build back better from the economic crisis brought on by the pandemic. NSBW events this year will provide a forum where business owners will be able to get expert advice, learn new business strategies, connect with industry experts, and meet other business owners as they look to pivot and recover.

Monday, September 13, 11 a.m. EDT – “Getting Back on Track: Resources to Build Back Better”

Day’s events include:

  • National Small Business Week Welcome – SBA Administrator Guzman
  • Morning Session – Visa US Economic Outlook:  Charting a Course for the Expansion
  • Mid-day Sessions –
    • Getting Real about Resilience
    • Make Your Small Business More Accessible
    • Winning in E-commerce with Email Marketing
  • Late-day Session – Government Incentives to Support and Retain Employees

Tuesday, September 14, 11 a.m. EDT – “Better Serving Small Businesses and Underserved Communities

Day’s events include:

  • Morning Sessions –
    • Access to Capital for Women Entrepreneurs
    • U.S. Postal Service: Delivering Solutions for Small Businesses
  • Mid-day Sessions –
    • Unlocking the Doors to Access for Black-Owned Businesses:  Funders and Founders Share their Real-Life Stories
    • Resilience and the Recovery: How Small Businesses Can Adapt to the Trends Transforming the Workforce
  • Late-day Session – Support Latino Biz: How Mayors and influencers are leading the way to celebrate the significant economic contributions that Latino-owned businesses make, the jobs they help create, and the positive impact they bring to our community.   

Wednesday, September 15, 11 a.m. EDT – “Continuance to Support Resilience and Renewal”

Day’s events include:

  • Morning Session – Recovery Lessons from the Nation’s Entrepreneurial Coaching Networks
  • Panel Discussion – Exporting as a Way to Grow Your Business: How SBA Can Help You Sell Overseas
  • Mid-day Sessions –
    • Accelerate Your Small Business Success by Selling Online
    • Integrating Brick and Mortar and E-commerce
  • Late-day Session – Empowering the Veteran and Military Small Business Community
  • Closing Session – “Gateway to Success:” Tune in to get a virtual look at the nationwide resources SBA field offices have to help small businesses business start, grow, expand and recover, and how to get connected to the powerful network of small business entrepreneurs right in your community.

To REGISTER for the National Small Business Week Virtual Summit and to participate in summit workshops, please visit http://www.sba.gov/NSBW. All events will be live-streamed and will use the event hashtag #SmallBusinessWeek.