WASHINGTON, July 11, 2020 /PRNewswire/ -- Today, the
U.S. Small Business Administration announced the conclusion
and success of the Economic Injury Disaster Loan (EIDL) Advance
program, which provided U.S. small businesses, non-profits and
agricultural businesses a total of $20
billion in emergency funding. In order to assist the
greatest number of small businesses, the EIDL Advance provided
$1,000 per employee up to a maximum
of $10,000. Recipients did not
have to be approved for a loan to receive the Advance, and the
Advance provided an interim but vital source of funds while
applicants awaited a decision on their loan application.
"Following the enactment of COVID-19 emergency legislation, the
SBA provided nearly six million small businesses employing 30.5
million people with $20 billion
through the unprecedented EIDL Advance program," Administrator
Jovita Carranza said. "This
program, built from the ground up in less than two weeks, assisted
millions of small businesses, including non-profit organizations,
sole proprietors and independent contractors, from a wide array of
industries and business sectors."
Having allocated the full $20
billion that was appropriated by Congress, SBA will
discontinue making EIDL Advances to new applicants. By law,
the SBA is not permitted to issue new EIDL Advances once all
program funding has been obligated.
EIDL loan applications will still be processed even though the
Advance is no longer available. As a reminder, the
loan portion of the EIDL program continues to have funds available
at very affordable terms, including a 3.75% interest rate for small
businesses and 2.75% for non-profit organizations, a 30-year
maturity, and an automatic deferment of one year before monthly
payments begin. Every eligible small business and non-profit
is encouraged to apply to get the resources they need.
About the U.S. Small Business Administration
The U.S.
Small Business Administration makes the American dream of business
ownership a reality. As the only go-to resource and voice for
small businesses backed by the strength of the federal government,
the SBA empowers entrepreneurs and small business owners with the
resources and support they need to start, grow or expand their
businesses, or recover from a declared disaster. It delivers
services through an extensive network of SBA field offices and
partnerships with public and private organizations. To learn more,
visit www.sba.gov.
Contact: Press_Office@sba.gov, (202) 205-7036
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Release Number: 20-56
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SOURCE U.S. Small Business Administration