Economic Injury Disaster Loans (EIDL) & Loan Advance
March 25, 2021 Update: Per Colorado Office of Economic Development and International Trade: SBA increased lending limit for COVID-19 Economic Injury Disaster Loans
Starting the week of April 6, 2021, the SBA is raising the loan limit for the COVID-19 EIDL program from 6-months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.
Businesses that receive a loan subject to the current limits do not need to submit a request for an increase at this time. SBA will reach out directly via email and provide more details about how businesses can request an increase closer to the April 6 implementation date. Any new loan applications and any loans in process when the new loan limits are implemented will automatically be considered for loans covering 24 months of economic injury up to a maximum of $500,000.
This new relief builds on SBA’s previous March 12, 2021 announcement that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to offer more time for businesses to build back. In order to shift all EIDL payments to 2022, SBA will extend the first payment due date for disaster loans made in 2020 to 24-months from the date of the note and to 18-months from the date of the note for all loans made in the calendar year 2021.
With the additional funding provided by the new COVID-19 relief package, SBA will resume processing EIDL Loan and Advance applications that are already in the queue on a first come, first-served basis.
We will provide further information on the availability of the EIDL portal to receive new applications (including those from agricultural enterprises) as soon as possible.
Administered by the Small Business Administration (SBA) – Colorado small businesses may seek up to $15K of working capital loans that can provide economic support to small businesses to help overcome the temporary loss of revenue during COVID-19. Also, eligible to apply for a loan advance of up to $10,000 for immediate cash. Funds will be made available within three days of a successful application, and the loan advance will not have to be repaid if used to specified purposes.
A new $10 billion has been approved by the federal government, and while the SBA is not able to accept applications right now, businesses can do the following in anticipation of the new funds:
- If they were already in the queue, check in to make sure all paperwork is correct and in place
- If they had not started working with the SBA yet, remain in contact with the SBA, so they can be ready if Congress appropriates additional funding at 1-800-659-2955 or disastercustomerservice@sba.gov.
- Set up a bank account if you do not have one. This will be necessary to receive relief funds.
- Prepare your paperwork, including average monthly payroll calculation (inclusive of eligible health care and retirement contributions).
- Create a plan for the use of funds over the 8-week period.
- Ensure that the 8-week disbursement plan complies with approved program expenditures to maximize your loan forgiveness.
- Reach out to your accountant for guidance and support.
Additional Resources:
U.S. Chamber of Commerce: Economic Injury Disaster Loan (EIDL) Program Guide
Apply for a COVID-19 Economic Injury Disaster Loan and advance by clicking the link below.
