The SBA provided $ 20 billion to small businesses and nonprofits under the Economic Disaster Loan Advance Program

WASHINGTON, July 11, 2020 / PRNewswire / – Today, the U.S. Small Business Administration announced the conclusion and success of the Economic Disaster Loan Advance Program (EIDL), which has provided small businesses with US businesses, nonprofits and farm businesses total $ 20 billion 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 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 deferral of one year before the start of monthly payments. Each qualifying small business and non-profit organization is encouraged to apply to get the resources they need.

About the United States Small Business Administration

The Small Business Administration of the United States is making the American dream of becoming a business owner a reality. As the only resource and go-to voice for small businesses backed by the strength of the federal government, the SBA gives entrepreneurs and small business owners the resources and support they need to start, grow or grow their businesses, or recover from a declared situation. disaster. It provides services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit www.sba.gov.

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SOURCE US Small Business Administration

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