SBA Expands EIDL Program Again, Lending Through 12/31/21
The U.S. Small Business Administration (SBA) announced that it is quadrupling the Economic Injury Disaster Loan (EIDL) cap from $500,000 to $2 million, effective immediately. Additionally, debt payments have been added to the list of ways a business can use loan proceeds.
With this significant expansion to the EIDL program, pharmacy owners should seriously consider applying for the EIDL or increasing their existing loan before the December 31, 2021 deadline.
Summary of Current EIDL Program Lending Terms
- Loan payments begin two years after loan origination
- Loan proceeds can be used for operating expenses, working capital, and (now with the updated rules) to pay business debt
- EIDL program runs through December 31, 2021
- Loans have a fixed interest rate of 3.75%
- Loans larger than $500,000 will begin after the exclusivity period, which ends October 8, 2021. See additional information on the SBA site.
Are you interested in applying for the EIDL?
It is important to understand the restrictions of the EIDL before applying, which may include collateral, personal guaranty or approval from the SBA for certain transactions. After consulting with your advisor, visit the SBA website to start the application process.
Do you already have an EIDL? The extended deferment period will be adjusted to 24 months for existing loans. You can request an increase to your loan by logging into your COVID EIDL portal.
For additional updates about COVID-related legislation and programs, visit our Media Resources page.