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$100 billion in SBA loans and grants still available

With less than three weeks left in 2021, you still have the opportunity to get a share of the remaining $100 billion in loans and grants from the Small Business Administration (SBA). December 31 is the last day that applications will be accepted for the COVID-19 Economic Disaster Loan (EIDL) and the EIDL Targeted Advance. And requests for additional targeted advance must be submitted no later than December 10, 2021.

$100 billion in SBA loans and grants STILL available to small businesses

One of the advantages of applying for government loans is the favorable rates. As a small business with less than 500 employees, you can apply for an EIDL loan of up to $2 million. The loan carries an interest rate of 3.75% if you are a for-profit business. And if you’re a nonprofit, the rate goes down to 2.75%. What makes it even more appealing is that these are 30-year loans.

The SBA is also encouraging small businesses to apply by relaxing the EIDL Guidelines therefore more funds can be distributed.

It begins by accepting EIDL Loan and Targeted Advance applications until December 31, while continuing the process after that date until funds are exhausted. This means that if there are funds available and you have applied, you have a chance of getting the loan long after the December 31 deadline.

In addition, as a borrower, you have up to two years after the date the loan was granted to request increases up to the maximum allowable loan amount. This can last until the funds are exhausted or the two years have passed.

With regard to requests for an additional targeted advance, they will also be accepted until 31 December. However, due to legal requirements, the SBA indicates that it may not be able to process certain Additional targeted advance applications if submitted by the December 31 deadline. After the December 31 deadline, the SBA can no longer process these requests.

Finally, if COVID EIDL requests are received by December 31, SBA will accept and consider requests for reconsideration and appeal. The reconsideration/appeal must be received within the time limits set out in the regulations.

Targeted Advance and Supplementary Grants from EIDL

The EIDL Targeted Advance and Supplemental Advance grants provide sums of up to $10,000 that do not have to be paid. As a business, you must demonstrate a 30% decline in revenue within an eight-week period beginning March 2, 2020. Beyond this requirement, you cannot have more than 300 employees and you must use funds for working capital and other operating expenses. Even though this small business grant does not have large sums of money, it can help very small businesses meet financial challenges.

Apply, you have nothing to lose

The advantage of the EIDL program is that you can apply even if you have received funds through the Paycheck Protection Program, the Restaurant Revitalization Fund or the Closed Venue Operator Grant.

Whether it’s a low-rate loan with a 30-year term or grants you don’t have to pay back, it doesn’t hurt to apply. But time is running out, so do it now.

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