The Small Business Administration (SBA) EIDL loan program is back in business. Due primarily to the volume of loan activity, the SBA online EIDL application portal was largely shut down on April 15. From April 15 through June 14, the only accepted new applications were those submitted by agricultural businesses not eligible for the EIDL program in the first round of funding – new applications by any other type of business were automatically rejected.
In a notice released June 15, the SBA announced it has now resumed processing EIDL applications submitted before April 15 on a first-come, first-served basis. They also announced, effective June 15, they will begin accepting new EIDL applications and EIDL Advance Program applications from all qualified small businesses — including agricultural businesses. As of June 12, over 1.3 million loans have reached approval at an approximate average of $68,215.
The amount of appropriations by Congress has increased, but the EIDL loan program application process and general provisions of the program have remained virtually unchanged. Major elements of the EIDL and EIDL Advance program are:
• $10,000 forgivable advance/grant determined by number of employees at $1,000 each
• Interest rates of 3.75% for small business and 2.75% for non-profit organizations
• Terms up to 30 years
• First payment deferred for 12 months
• Maximum loan amounts originally set at $2 million has reportedly (although not officially announced by the SBA) been reduced to $150,000
• Application deadline is December 31, 2020
The original Paycheck Protection Program Act and the Economic Injury Disaster Loan component have had multiple amendments and guideline changes since its passage. Therefore, it is critical to stay informed. Be sure and reach out to your CRI advisor for the most current information.