A key part of President Biden’s plan to combat increasing COVID cases is an expansion of the Economic Injury Disaster Loan (EIDL) program through the Small Business Administration. Loan limits are going up from $500,000 to $2,000,000, and the money can be used to pre-pay commercial and credit card debt. Curious? Tune into a free webinar outlining the expanded program tomorrow at noon.
The following information comes from the Colorado Restaurant Association’s September 13 newsletter. Sign up to receive the full version here.
Expanded EIDL Program Updates and Webinar on Wednesday, 9/15 at Noon
Last week, President Biden unveiled a forthcoming six-part COVID-19 Action Plan to address the recent rise in COVID-19 cases. That plan included aid to small businesses through the expansion of the Economic Injury Disaster Loan (EIDL) program.
Our partners at the National Restaurant Association (NRA) have worked with the Small Business Administration (SBA) to improve the EIDL to make it more usable for restaurants. The SBA has responded to these efforts with a new expansion of the program – increasing the loan limit and improving the range of uses, all while retaining the same very low federal interest rate.
Specifically, the new COVID EIDL program includes:
- An increase in the loan cap amount to $2 million from the current cap of $500,000. Eligible businesses that have already received a COVID EIDL loan for a smaller amount can apply to increase their loan.
- Requirements for businesses that are affiliated will now mirror the Restaurant Revitalization Fund (RRF).
- COVID EIDL funds can be used to pre-pay business debt, allowing restaurants that are carrying higher-interest commercial debt or even credit card debt (acquired over the last year) to use COVID EIDL funds to pay outstanding debt balances in one lump sum.
Click here to view the EIDL expansion fact sheet.
The NRA is hosting a free webinar on Wednesday, September 15 at noon MT about the expanded EIDL program, during which a top SBA official will walk us through the loan program and take your questions.
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