With less than three weeks remaining in 2021, you still have the opportunity to get a piece of the $100 billion left in Small Business Administration (SBA) loans and grants. December 31 is the last day applications will be accepted for the COVID-19 Economic Injury Disaster Loan (EIDL) and Targeted EIDL Advance. And the Supplemental Targeted Advance applications must be turned in no later than December 10, 2021.
$100 Billion in SBA Loans and Grants STILL Available for Small Business
One of the benefits of applying for government loans is the great rates. As a small business with less than 500 employees, you can apply for an EIDL loan of up to $2 million. The loan comes with a 3.75% interest rate if you are a for-profit company. And if you are a not-for-profit organization, the rate goes down to 2.75%. What makes it even more attractive is, these are 30-year loans.
The SBA is further encouraging small businesses to apply by easing the EIDL guidelines so more of the funds can be distributed.
It starts by accepting EIDL loan and Targeted Advance applications until December 31, while continuing the process after this date until funds are exhausted. This means if there are funds available and you have applied, you have a chance of getting the loan long after the December 31 deadline.
Additionally, as a borrower, you have up to two years after the loan origination date to request increases up to their maximum eligible loan amount. This can go on until the funds are exhausted or the two years have passed.
When it comes to the Supplemental Targeted Advance applications, they will also be accepted until December 31. However, because of the legal requirements, the SBA says it may not be able to process some Supplemental Targeted Advance applications if they are submitted close to the December 31 deadline. After the December 31 deadline, the SBA cannot continue to process these applications.
Finally, if COVID EIDL applications are received on or before December 31, the SBA will accept and review reconsideration and appeal requests. The reconsideration/appeal must be received within the timeframes in the regulation.
EIDL Targeted Advance and Supplemental Advance Grants
The EIDL Targeted Advance and Supplemental Advance grants provide sums up to $10,000 which don’t have to be paid. As a business, you must show a 30% decrease in revenue during an eight-week period beginning on March 2, 2020. Beyond this requirement, you can’t have more than 300 employees and you must use the funds for working capital and other operating expenses. Even though this small business grant doesn’t have large sums of money, it can help very small businesses address financial challenges.
Apply, You Have Nothing to Lose
The benefit of the EIDL program is you can apply even if you have received funds through the Paycheck Protection Program, the Restaurant Revitalization Fund, or the Shuttered Venue Operators Grant.
Whether it is a loan with low rates and a 30-year maturation date or grants you don’t have to pay back, it doesn’t hurt to apply. But time is running out, so do it right away.