Tools & Education
Check out the latest news and resources for small businesses covering topics such as human resources, employee engagement, and management.
There’s $150 billion left in the COVID EIDL program for small businesses.
Even if you already received a loan, you may be eligible for an increase due to back and forth restrictions and the Delta Variant impacting your business and revenue. If you’re just now starting to feel the weight of the pandemic, it’s not too late to apply.
The application portal is open until December 31, 2021, or until funds are exhausted. The SBA recently announced new changes to the program— here’s what we know.
EIDL (Economic Injury Disaster Loan) is a loan program provided by the SBA to help businesses recover from an economic disaster or “economic injury.” Most businesses with less than 500 employees can apply for a loan if they are in a disaster area and experience a financial loss that prevents them from paying necessary operating expenses. Typically, the EIDL program will step up in situations like hurricanes, fires, tornados, floods, and storms.
In the spring of 2020, the SBA declared the entire nation a disaster area due to COVID-19 and developed a special COVID EIDL program to help as many U.S. businesses stay alive financially as possible.
As the pandemic continues to impact small businesses nationwide, the SBA announced some new changes to the COVID EIDL on September 8, 2021, including:
Your business is eligible for a COVID EIDL if it meets all of the following criteria:
Your business must also have a valid IRS-issued tax identification number. Each owner, member, partner, or shareholder owning 20% or more of the business must also be a U.S. citizen, non-citizen national, or qualified alien with a Social Security Number. For more information on immigration status, visit SOP 50 30 9, Appendix 7.
If you are a sole proprietor, you must be a U.S. citizen, non-citizen national, or qualified alien with a valid Social Security Number to be eligible for COVID EIDL.
The September 8 announcement included a few changes to the COVID EIDL terms, the most important being the expanded use of funds. Here is a breakdown of the complete loan terms:
New COVID EIDL application
Visit https://covid19relief.sba.gov/#/ to complete your application online. The application portal walks you through the process step-by-step, and the SBA will reach out to you directly if any additional information is needed.
Be prepared to submit the following documents with your application:
You can check the status of your application through the portal at any time, but keep in mind the following turnaround times:
COVID EIDL increase application
If you already received a COVID EIDL, you can apply for an increase up to the amount you qualify for or the $2 million cap, whichever is lower. Applications to increase a loan will most likely have to wait until the exclusivity period ends on October 8, when applications for funds over $500,000 are accepted.
Log into your account through the COVID EIDL portal to submit a request for an increase on your loan. Make sure you do not apply for another loan, or your application might be flagged as fraudulent.
Loan increase amounts are determined by how much your business qualifies for if you applied today minus any funds, you have already received from COVID EIDL. Most likely, you will not need to resubmit any standard documents with your request for an increase. You can check the status of your application at any time by logging into your portal.
If you have any questions or concerns about your application, you can contact the SBA Customer Service Center at 800-659-2955 or email DisasterCustomerService@sba.gov.