SBA reopens emergency disaster loans for small businesses
Photo | Grant Welker
Downtown Worcester in the middle of a weekday during the coronavirus shut down
The U.S. Small Business Administration has reopened applications for its Economic Injury Disaster Loans for entities impacted by the coronavirus pandemic, the administration announced on Monday.
Applications for EIDL Advance emergency grants, which do not have to be repaid and are available up to $10,000, will also be reopened.
The EIDL program provides low-interest federal disaster loans with long repayment plans to businesses and organizations experiencing major economic upsets as a result of the coronavirus pandemic. The loans can go toward covering debts, payroll, accounts payable and other bills not already covered by the Paycheck Protection Program, according to the announcement.
The interest rate is 3.75% for small businesses and 2.75% for nonprofits. Payments are deferred for one year.
EIDL loan applications, made widely available after the coronavirus hit the United States, were temporarily halted on April 15, before then being set aside for agricultural businesses, according to a May 4 announcement from the SBA. Monday’s announcement marks a significant re-expansion to the program.
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