SBA wraps up ‘advance’ portion of EIDL program; loans to continue, but without upfront money

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.

Click here to apply.

Read more from ROI-NJ on coronavirus: