HARLINGEN — The U.S. Small Business Administration announced Monday that the deadline to apply for special economic disaster loans has been extended until Dec. 31, 2021.
The extension of the Economic Injury Disaster Loan program, known as EIDL, was made possible by the COVID-19 relief bill passed by Congress and signed into law by President Trump.
The EIDL program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to the coronavirus.
Loan maximums are $2 million, with interest rates on the 30-year fixed-rate loans at 3.75 percent for businesses and 2.75 percent for nonprofits.
To date, the SBA has approved $197 billion in lowinterest EIDL loans.
“Following the president’s declaration of the COVID-19 pandemic, the SBA has approved over 3.6 million loans through our Economic Injury Disaster Loan program nationwide,” Administrator Jovita Carranza said. “The EIDL program has assisted millions of small businesses, including non-profit organizations, sole proprietors and independent contractors, from a wide array of industries and business sectors, to survive this very difficult economic environment.”
EIDL loans are different from the Paycheck Protection Program (PPP) financing offered to small business owners suffering from business disruptions caused by COVID-19.
Unlike the PPP loans, which primarily support payroll, EIDL loans have a broader range of features. The loans cover working capital and operating expenses, including health-care benefits, rent, utilities and fixed debt payments Small businesses and nonprofits can apply on the SBA website at https://www.sba.