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Economic Injury Disaster Loans Available To Small Businesses

The Small Business Administration (SBA) has modified its Economic Injury Disaster Loan (EIDL) program, which is available to businesses that were operating as of Jan. 1, 2020. It offers federal loans at 3.75% for businesses, including agricultural businesses; and at 2.75% for nonprofits.

Among the program changes, the SBA has increased the amount that can be borrowed, from $500,000 to $2 million for qualified applicants; it has authorized funds to be used to pay and prepay commercial debt and make payments on federal business debt; and it has extended the repayment date: Loan recipients will not need to start repaying the loan for two years after the origination date.

To help ensure that the smallest businesses can access the capital, the SBA has created a one-month window for businesses requesting $500,000. Until Oct. 8, approvals and disbursements will focus entirely on loans of $500,000 or less. After that, approvals and disbursements will open to all loan sizes.

Learn about application requirements for the EIDL program at sba.gov/funding-programs.