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$2 Million SBA COVID-19 Economic Injury Disaster Loan (EIDL)

Posted by BOOSCPA Strategic Tax Services Group Posted on Nov 29 2021
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$2 Million SBA COVID-19 Economic Injury Disaster Loan (EIDL)

The U.S. Small Business Administration recently quadrupled the Covid-19 EIDL limit to $2 million and added business debt payments to the ways businesses can use the loan proceeds. This program ends December 31, 2021, or when funds are exhausted, if sooner.

Loan Details
  1. $2 million maximum loan amount
  2. 3.75 % fixed interest rate (2.75% nonprofit interest rate)
  3. 30-year term
  4. Loan proceeds can be used for ordinary and necessary operating expenses, and past, present, or future business debt payments
  5. Payments deferred for the first two years
  6. Minimal paperwork for approval
  7. Collateral required for loans > $25,000
  8. Personal guaranty required for loans > $200,000

General Requirements:
  1. Minimum Credit Score of 570 (625 for loans > $500,000)
  2. In business before April 2020
  3. If already received Covid financing from the SBA, this is an opportunity to receive additional financing up to $2 million
  4. If previously declined, you can now reapply

Additional Aspects of the EIDL Program:
  1. Targeted EIDL Advance - provides up to a $10,000 grant to applicants who qualify
  2. Supplemental Target Advance - provides a supplemental $5,000 grant to applicants who qualify

Need Help?
If you think your business may benefit from the EIDL, please contact us: