The U.S. Small Business Administration’s (SBA) recently expanded COVID-19 Economic Injury Disaster Loan (COVID EIDL) program, which offers long-term, low-interest loans of up to $2 million to small businesses impacted by the pandemic, presents a financing tool that most eligible businesses should consider.
We described the expansion of the COVID EIDL program in a recent article. The below chart provides a high-level summary of the SBA’s guidance related to the program, including the economic terms, eligibility requirements, and documentation required to obtain a COVID EIDL loan. Notably, for the COVID EIDL program, the SBA appears to have dispensed with its usual requirement that borrowers demonstrate “substantial economic injury” to be eligible for a disaster loan.
The SBA is accepting COVID EIDL applications here. The program will end on the earlier of December 31, 2021, or the date funds are exhausted.
Use of Proceeds
(a) is assigned a NAICS code beginning with:
(b) employs not more than 500 employees per physical location; and
(c) has no more than 20 locations (this includes the number of locations that your affiliates have, if any)
For Loans >$500,000
Lane Powell’s team of attorneys is here to help you develop and implement the strategy that supports your business and your employees. For more information, consult Lane Powell’s COVID-19 Resource Center or contact Andrew Geppert, Lewis Horowitz, or Eric Kodesch. Keep up-to-date by subscribing to Lane Powell’s Legal Updates.
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