$ 20 billion in SBA economic disaster loan advances to small businesses and nonprofits
July 13, 2020
The US Small Business Administration announced the conclusion and success of the Economic Disaster Loan Advance Program (EIDL), which has provided US small businesses, nonprofits, and farm businesses with a total of 20 billion dollars in emergency funding. To help as many small businesses as possible, EIDL Advance has provided $ 1,000 per employee up to a maximum of $ 10,000. Recipients did not need to be approved for a loan to receive the advance, and the advance was an interim but vital source of funds while applicants awaited a decision on their loan application.
“Following the enactment of emergency COVID-19 legislation, the SBA has provided nearly six million small businesses employing 30.5 million people $ 20 billion through the unprecedented EIDL Advance program,” said the administrator Jovita Carranza. “This program, built from the ground up in less than two weeks, has helped millions of small businesses, including nonprofits, sole proprietors and independent contractors, from a wide range of industries and sectors of activity. “
After allocating all of the $ 20 billion that has been allocated by Congress, the SBA will stop making EIDL advances to new candidates. By law, the SBA is not permitted to issue new EIDL advances once all program funding has been committed.
EIDL loan requests will still be processed even if the Advance is no longer available. As a reminder, the loan part of the EIDL program continues to have funds at very affordable conditions, including an interest rate of 3.75% for small businesses and 2.75% for non-profit organizations, a maturity of 30 years and an automatic postponement of one year. before the start of the monthly payments. All qualifying small businesses and nonprofits are encouraged to apply for the resources they need.
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