The U.S. Small Business Administration said Monday it has wrapped up its Economic Injury Disaster Loan Advance program, which provided small businesses, nonprofits and agriculture businesses with $20 billion in emergency funding due to the COVID-19 pandemic.
The SBA said it will continue to provide loans to small businesses and nonprofits, albeit without the “advance” portion of the program.
The EIDL advance provided $1,000 per employee, up to a maximum of $10,000, and the advance portion meant that recipient companies did not need to be approved for a loan to receive the money — providing an interim source of funds as businesses awaited a decision on their application.
“Following the enactment of COVID-19 emergency legislation, the SBA provided nearly 6 million small businesses employing 30.5 million people with $20 billion through the unprecedented EIDL Advance program,” SBA Administrator Jovita Carranza said in a prepared statement. “This program, built from the ground up in less than two weeks, assisted millions of small businesses, including nonprofit organizations, sole proprietors and independent contractors from a wide array of industries and business sectors.”
As the EIDL program continues, businesses will still be eligible to apply for loans, with a 3.75% interest rate for small businesses and a 2.75% rate for nonprofits. Loans include a 30-year maturity and deferment of payments for one year.
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