Last updated on May 5th, 2020 at 02:55 pm
The U.S. Small Business Administration is now offering Economic Injury Disaster Loans after temporarily closing its application portal due to a lack of funds.
The $484 billion stimulus package recently approved by Congress included $50 billion to replenish the EIDL program and an additional $10 billion for the EIDL cash advance program. Eligible businesses have access to those funds starting today, the U.S. SBA announced this morning.
The U.S. SBA has also made the EIDL program available to farmers, ranchers and certain other agricultural businesses affected by the COVID-19 coronavirus pandemic, according to a U.S. SBA press release.
“These low-interest, long-term loans will help keep agricultural businesses viable while bringing stability to the nation’s vitally important food supply chains,” U.S. Small Business Administration administrator Jovita Carranza said in a statement.
However, the SBA is limiting fund disbursal to agricultural businesses and businesses who had already applied before the portal closed on April 15 but had not yet been approved or received funds.
Agricultural businesses that previously submitted an EIDL application will not need to reapply. All other EIDL applications that were submitted before April 15 will be processed on a first-in, first-out basis, according to the press release.
The EIDL program provides businesses with less than 500 employees a loan of up to $2 million. The loan carries an interest rate of 3.75% for small businesses and 2.75% for non-profits and a term of up to 30 years. The EIDL program also offers eligible businesses a $10,000 cash advance grant.
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