SBA Offering Billions In COVID Economic Injury Disaster Loans Before December 31

The U.S. Small Business Administration (SBA) has announced updated guidance for COVID Economic Injury Disaster Loan (EIDL) program applicants to better serve small business owners in need, while funding remains available.

The COVID Economic Injury Disaster Loan (EIDL) and EIDL Advance programs still have billions of dollars available to help small businesses hard hit by the pandemic.

In response to COVID-19, small business owners, including agricultural businesses, and nonprofit organizations can apply for EIDL.

The purpose of EIDL is to provide financial assistance for small businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred.

The SBA has implemented the following updated guidance:

— EIDL Loan and Targeted Advance Applications will be accepted until December 31 and will be processed after this date until funds are exhausted.

— Supplemental Targeted Advance Applications will be accepted until December 31. However, the SBA is unable to process these applications after the December 31 deadline. The SBA strongly encourages eligible small businesses to apply by December 10 to ensure adequate processing time.

— Increases to Maximum Loan Amount – Borrowers can request increases up to their maximum eligible loan amount for up to two years after their loan origination date, or until the funds are exhausted, whichever is soonest.

— Application Deadline – The SBA will accept and review reconsideration and appeal requests for COVID EIDL applications received on or before December 31 if the reconsideration/appeal is received within the timeframes in the regulation. This means six months from the date of decline for reconsiderations and 30 days from the date of reconsideration decline for appeals – unless funding is no longer available.

In September, the SBA announced major enhancements to the EIDL program. Key changes announced included–

— Increased COVID EIDL Cap – The SBA lifted the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying off debt.

— Implementation of a Deferred Payment Period – The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after loan origination so that they can get through the pandemic without having to worry about making ends meet.

— Establishment of a 30-Day Exclusivity Window – To ensure Main Street businesses have additional time to access these funds, the SBA implemented a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less. Approval and disbursement of loans over $500,000 began after the 30-day period ended.

— Expansion of Eligible Use of Funds – COVID EIDL funds are now eligible to prepay commercial debt and make payments on federal business debt.

— Simplification of affiliation requirements – To ease the COVID EIDL application process for small businesses, the SBA established simplified affiliation requirements to model those of the Restaurant Revitalization Fund.

How to apply

Eligible small businesses, nonprofits, and agricultural businesses in all U.S. states and territories can apply. Visit to learn more about eligibility and application requirements.

The last day that applications may be received is December 31, 2021.

Applications received by December 10 for Supplemental Advance will be processed in the order received and the SBA cannot guarantee processing of all applications by December 31.

All applicants should file their applications as soon as possible to allow for processing. For additional information on COVID EIDL and other recovery programs, please visit

Small business owners may call SBA’s Customer Service Center 1-833-853-5638 (855-440-4960 for the deaf and hard-of-hearing) or email  for additional assistance.

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