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Increase in EIDL Loan Availability

The Small Business Association (SBA) has increased availability of EIDL Loans from $500k to $2M and streamlined the process.  Applications are now open and funding will begin October 8, 2021.

Updates

  • Maximum loan cap increased from $500,000 to $2 million
  • Use of funds was expanded to include payment and pre-payment of business non-federal debt incurred at any time (past or future) and payment of federal debt
  • Extend the deferment period to 24 months from origination for all loans (existing loans with a less than 24-month deferment will be adjusted)
  • Affiliation requirements simplified to an affiliate is a business that you control or in which you have 50% of more ownership
  • Developed additional path to meet program size standards for businesses assigned a NAICS code beginning with 61, 71, 72, 213, 3121, 315, 448, 451, 481, 485, 487, 511, 512, 515, 532, or 812
  • Exclusivity Period: From September 8, 2021, to October 8, 2021, the above policy changes will be applicable to applications for <$500K while applications for >$500K will not be approved and therefore receive the policy changes until October 8, 2021

New loan

If the small business is a first-time COVID EIDL applicant, complete the following steps to apply:

  1. Confirm eligibility (review FAQs and below Loan Eligibility section).
  2. Complete Intake Form.
  3. Sign up to create portal username via SBA email invite.
  4. Complete portal steps and submit relevant documents.
  5. Respond to SBA requests for signature, confirmation, and documents.

The average SBA decision timeline for $500,000 or under is several weeks.

Increased loan

If the small business has already obtained a loan via COVID EIDL before and does not already have an outstanding loan increase application in process, complete the following steps to apply for a loan increase:

  1. Confirm Eligibility (review FAQs and below Loan Eligibility section).
  2. Log onto Account on SBA Portal (do not apply for another loan) to submit loan modification.
  3. Complete portal steps and submit relevant documents.
  4. Respond to SBA requests for signature, confirmation, and documents.

The average SBA decision timeline for $500,000 or under loans is several weeks.

For more information, visit the SBA website.

Connect with us today if you need assistance or have any questions regarding an EIDL Loan or increase.

 

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