SBA pandemic loan maturities approaching |
The deadlines for some U.S. Small Business Administration pandemic repossession loans are fast approaching.
Small businesses requesting the Additional targeted advance are encouraged to submit their applications by December 10. The SBA will not process or accept applications received after December 31st.
Federal small business loan programs are designed to support recovery from the impacts of the pandemic with accessible, borrower-friendly capital.
Economic disaster loan
Small businesses, including farm businesses and non-profit organizations, can apply for COVID-19 EIDL funding.
The loan provides working capital to businesses to cover operating expenses, which can include payroll, rent, mortgage, utilities, and other regular business expenses. It can also be used to pay off debts.
Unlike SBA Paycheck Protection Program loans, an EIDL is not forgivable.
Businesses cannot borrow more than $ 2 million. Interest rates for businesses are set at 3.75% for 30 years, while private nonprofits have a fixed interest rate of 2.75%.
Interest will accrue immediately, but payments are deferred for the first two years. Principal and interest payments can be made over the remaining 28 years.
Small businesses that have already received a COVID-19 EIDL loan can apply for a loan increase.
The EIDL Advance and Supplemental Targeted Advance Targeted Grants provide hard-hit businesses and private nonprofits with funding that does not require repayment.
Interested organizations must first apply for the COVID-19 EIDL grant, but do not have to wait to be approved before applying.
The SBA will send an email to EIDL applicants who are in low income areas.
Eligible applicants can receive up to $ 15,000 from the two advance grant programs.
Businesses located in a low-income community, with 300 or fewer employees, who can demonstrate a reduction in income of more than 30% over an eight-week period are eligible for the Targeted EIDL Advance Grant.
An additional targeted advance applies to companies with less than 10 employees, who can prove an economic loss of more than 50%.
Applicants will need to provide gross monthly income from January 2019 to the current month.