The Small Business Administration has allowed business owners and nonprofit organizations to submit applications for low-interest loans until Dec. 31, 2021 to help them manage financial challenges brought on by the coronavirus pandemic.
SBA said the deadline extension for Economic Injury Disaster Loan applications followed the enactment of bipartisan legislation that allocates $900B for COVID-19 relief efforts.
COVID-19 EIDLs can be used for normal operating expenses, such as the continuation of health care benefits and fixed debt payments, and for working capital to assist smaller companies, private nonprofits and homeowners in disaster recovery efforts.
The agency has recorded $197B in approved low-interest loans for several disaster events to date.
EIDL loan applications will continue to be accepted through December 2021, pending the availability of funds.
Loans are offered at very affordable terms, with a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity, and an automatic deferment of one year before monthly payments begin.
Every eligible small business and nonprofit are encouraged to apply to get the resources they need.