Loans

Application deadline for SBA COVID loans is Friday

Application deadline for SBA COVID loans is Friday
Written by Publishing Team

Friday is the deadline for small businesses and nonprofits struggling during the pandemic to apply for a federal disaster loan, officials said.

The US Small Business Administration has announced that it will accept first-time applications for the COVID-19 Economic Injury Disaster Loan Program, or EIDL, “through December 31.”

Loans up to $2 million per applicant for 30 years. The interest rate is 3.75% for corporations and 2.75% for non-profit organizations.

Those who took out an EIDL loan in 2020 or early 2021 — when the maximum amount was less than $2 million — have more time to get additional money. Veronica Pugin, senior advisor at SBA’s Capital Access, said they have two years from when their loan is made or until the loan funds are gone to increase the loan amount.

The longer time frame also applies to appeals from borrowers whose COVID EIDL applications have been rejected by the SBA.

Nearly 3.9 million COVID EIDL loans, totaling $312 billion, have been made since the coronavirus hit in early 2020. In New York State, there are 329,646 loans, totaling more than $30 billion, the third largest in the country after California and Florida, according to agency data as of Dec.

Questions about EIDL loans can be sent to disastercustomerservice@sba.gov or by calling 833-853-5638.

Scholarship deadline

The Friday deadline also applies to applications for the Additional Targeted and Additional Targeted EIDL Advance Scholarships. Grants of up to $15,000 are for businesses and nonprofits hard hit by the pandemic and located in slums.

However, the SBA said applicants should submit their papers immediately because the agency “may be unable to process some of them.” [applications] Submitted near the December 31 deadline due to legal requirements. The agency said the Small Business Administration cannot continue to process targeted supplemental applications submitted after December 31.”

Scholarship applicants must first apply for an EIDL loan after which the SBA will invite” [them] via email to apply for an Advance program if [they] It is located in a low income area.

Questions regarding scholarship programs may be sent to TargetedAdvance@sba.gov. More information is available at sba.gov/eidl.

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