Are you looking for more help to keep your small business afloat? Last week, we got a rundown on the PPP loan initiated during the pandemic. Is there more help available?
Yes, but the acronym is worse, EIDL, which stands for Economic Injury Disaster Loan. The PPP and EIDL fit together to provide more funds to support your business needs. But you can’t use them to pay for the same expenses.
This low-interest loan pays for web hosting, accounting services, rents and utilities, inventory, office supplies, and other day-to-day expenses. Are there two types of EIDL? The EIDL advance funds are available to certain businesses only.
A COVID-19 EIDL targeted advance remains available to businesses who already received a partial advance, small businesses in low-income communities, and prior applicants who didn’t get an advance in 2020 due to lack of funds. The SBA is contacting those businesses directly. You don’t need to reapply.
The good news is the EIDL loan is available. It’s for small businesses, including agricultural businesses and non-profits. Application is easy; apply right on the SBA EIDL site.
The money spigot opens further after April 6, 2021, as businesses can borrow more than $150,000, the amount previously available. The loans come with deferred repayment terms of 18 to 24 months, depending on when you receive the loan. Who qualifies for this loan?
Suppose you’re a small business with less than 500 employees, a sole proprietorship, an independent contractor, or a private non-profit with less than 500 employees. This low APR loan with a long repayment timeline is something to consider.
Author: Kris Keppeler, a writer who finds technology fascinating and loves humor. She writes for Crossing Genres on Medium.com and Does This Happen to You? on Channillo. Award-winning podcast producer who enjoys telling stories. Follow her @KrisKKAria on Twitter or on LinkedIn.