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COVID-19 EIDL Deadline Is Over: Other Loan Options For Businesses In Need

The deadline to use for COVID-19 EIDL Loans, Focused Grants and Supplemental Focused Grants ended December 31, 2021. Right here’s what which means, and different choices to assist your enterprise get funding whether it is nonetheless struggling as a result of pandemic.

The SBA stopped accepting functions for COVID-19 EIDL loans and grants after December 31, 2021. When you utilized earlier than the deadline, the SBA will proceed processing:

Mortgage functions acquired earlier than the deadline, together with requests for reconsideration.
Focused EIDL Advance (grant) functions, together with requests for reconsideration.
Which means some enterprise house owners will likely be authorised for COVID-19 EIDL loans and/or grants in 2022. As well as, some enterprise house owners who utilized for reconsideration or for mortgage will increase should still get authorised.

Nonetheless, the SBA is now not accepting or processing functions for the Supplemental Focused Advance (grant), even for companies that met the applying deadline.

You may examine the standing of your software by:

What’s the COVID-19 EIDL mortgage?
In March 2020, your complete US and its territories have been declared a catastrophe space as a result of COVID-19 pandemic, and consequently the Covid-19 Financial Harm Catastrophe Loans have been made obtainable to eligible companies (together with unbiased contractors and sole proprietors) throughout the US. Subsequently Congress handed laws that added a grant of as much as $10,000 that doesn’t should be repaid. Eligibility was expanded to incorporate nonprofit organizations and sure agricultural companies, despite the fact that historically SBA loans are solely obtainable to for-profit companies.

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Enhancements to this system have been made via later laws, together with the $10,000 Focused Grant for hardest hit companies, and a $5000 Focused Supplemental Grant.

These loans supply a most mortgage quantity of $2 million, carry a low rate of interest of three.75% (or 2.75% for nonprofits) and have a beneficiant reimbursement interval of 30 years. These working capital loans could also be used to make common funds for working bills, together with payroll, lease/mortgage, utilities, and different extraordinary enterprise bills. Debtors may use proceeds to pay most enterprise debt incurred at any time (previous, current, or future).

Is the EIDL Mortgage Nonetheless Accessible?
In case you are curious about EIDL as a result of your enterprise was impacted by the COVID-19 pandemic, the EIDL mortgage deadline has expired on the finish of 2021 and no new functions will likely be thought of.

Nonetheless, the Financial Harm Catastrophe Mortgage program itself isn’t gone. These loans are a part of the SBA’s Catastrophe Mortgage program, and so they have been obtainable earlier than the pandemic and proceed to be obtainable. If your enterprise is positioned in a federally declared catastrophe space (whether or not resulting from fires, hurricanes, tornados, floods or different disasters) and suffers financial damage consequently, you’ll be able to apply for a low-interest EIDL straight via the U.S. Small Enterprise Administration at SBA.gov.

There isn’t any ongoing EIDL grant as a part of the normal EIDL program, nevertheless. The $10,000 grant (and the $5000 supplemental grant) was created by Congress particularly to assist companies via the coronavirus pandemic.

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Extra Assist for Small Companies
The Paycheck Safety Program and SBA’s Financial Harm Catastrophe Mortgage Program for companies impacted by COVID-19 have been probably the most extensively obtainable small enterprise reduction packages throughout the pandemic. No different packages approached them in dimension or scope.

Small enterprise house owners who’re nonetheless struggling must look strategically for different grants and COVID-19 reduction packages. Choices could embody:

It’ll take effort and time to search out packages which are a match for your enterprise, and an excellent place to start out is along with your native SBA Resource Partner corresponding to SCORE, Small Enterprise Improvement Heart (SBDC), or Girls’s Enterprise Heart. They supply free consulting to small companies and is usually a nice useful resource for figuring out native packages in addition to effectively as offering assist to get your enterprise again on observe.

What might your enterprise do with $10,000?

Take a look at Nav’s Small Enterprise Grant now to learn the way your enterprise might win $10,000.

Apply now

FAQs
Will the EIDL deadline be prolonged?
With waves of COVID-19 variants corresponding to delta and omnicron impacting small companies, it’s potential that Congress might move further laws to help small companies. However in the interim, the deadline has not been prolonged and solely EIDL mortgage functions acquired earlier than the deadline will likely be thought of.

Will EIDL loans be forgiven?
In contrast to PPP loans, Covid EIDL loans are usually not forgivable. Congress would seemingly must act to make that occur and there was little dialogue of forgiving these loans. (The Focused Advance and Supplemental Advance are grants that do not need to be repaid, so in a way they’re “forgiven.”)

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When does reimbursement begin?
The SBA has prolonged the time interval earlier than SBA EIDL loans should begin funds. Enterprise house owners now have two years earlier than they need to start repaying their mortgage. Curiosity does accrue throughout that point, nevertheless, so chances are you’ll wish to take into account making funds as quickly as your enterprise has stabilized.

This text was initially written on January 1, 2022.

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