The SBA recently made changes to the EIDL loan program to help small businesses still struggling with the pandemic. The SBA still has more than $150 billion available in funding. These changes include the following:

  • The maximum loan size has increased from $500,000 to $2 million.
  • Loan proceeds can also be used to prepay commercial debt and to make payments on federal loans.
  • Deferred repayments are now available. Small business owners have two years after loan origination before payments are due. Interest will accrue, and payments will be made over 28 years.
  • Eligibility has been expanded to organizations with multiple locations. Under the old rules, only organizations with fewer than 500 employees were eligible. Now, organizations with up to 20 locations are eligible, provided that each location has fewer than 500 employees.

The EIDL program will run through December 31, 2021 and offers 30-year loans with interest rates of 3.75% for small businesses and 2.75% for not-for-profits.

Related Articles