$100 Billion


Written by CMG News Contributor, Doug Carleton


This is how much money the SBA still has available in the Covid EIDL program, which will be available until December 31st. In the early days of this and the Paycheck Protection Program (PPP), when the severity of the economic disaster became clearer, these programs were so overwhelmed with applications that it was almost a stampede. The SBA and lenders who were participating in the program were overwhelmed. In spite of all of the chaos, problems, miscues, etc., the EIDL program provided nearly $300 billion in relief aid to over 3.8 million businesses employing more than 20 million people. SBA often gets a bad rap, but how many of these businesses might have failed and how many jobs could have been lost had it not been for the EIDL program - warts and all? We will never know, but if we could wave a magic wand and ask every single one of those 3.8 million businesses whether they would have survived without that relief, it would be really interesting to know.


The EIDL program is more complicated than the PPP program, but no more complicated than applying for a regular SBA loan from a bank. The requirements are generally the same. One of the major requirements under the program is that the loan applications are underwritten by an SBA underwriter under the same process as the bank would underwrite a conventional bank loan, except the applications go directly to the SBA. As the economy improves, you may benefit from the advantages of the EIDL program to help your business recover or grow. If you think an EIDL loan will help your business, you may want to apply very soon since time is running out. You can assume that it is going to be a pain in the ____. But that pain is not much different that the pain experienced when applying for a traditional loan from a bank. Owning and operating a small business offers a whole array of pains - expected and unexpected, so it is probably not unlike something you have already experienced. If there is a chance to get a loan that would significantly benefit your company, isn't it worth one more pain?


What are some of the benefits of the EIDL loan program?:

  • The SBA increased the Covid EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expense and working capital including payroll, equipment purchases, rent or mortgage and repayment of debt. Try getting that from your bank.

  • The loan is repayable over 30 years

  • The rate of the loan is fixed at 3.75% for businesses (2.75% for non-profits)

  • Fees are very low

  • There is the possibility of deferment for up to two years before beginning repayment.

It may be worth your time to find out if you are in a position to qualify for an EIDL loan. Think about what the benefits may be for your business. It definitely may be worth serious consideration.