The U.S. Small Business Administration (SBA) has provided $200 billion in emergency funding to business, nonprofits and agricultural producers in the wake of the COVID-19 pandemic.
On Friday, Feb. 12, the federal agency announced that it hit the $200 billion milestone in the COVID-19 Economic Injury Disaster Loan program, which provided funding for payroll and expenses, accounts payable and other costs that cannot be paid due to the COVID-19 pandemic.
An EIDL loan is a long-term, direct loan from the SBA, which has a 3.75 percent APR for businesses and a 2.75 percent APR for nonprofits with a 30-year payment period. Small businesses and nonprofits can apply as much as six months of working capital, or up to $150,000.
According to the SBA, EIDL loans are not forgivable, although payment can be deferred for a year, while the interest still accrues.
“Following the enactment of COVID-19 emergency legislation, the SBA has now provided more than 3.7 million small businesses employing more than 20 million people with $200 billion through the unprecedented COVID-19 EIDL loan program,” acting administrator Tami Perriello said in a statement. “SBA remains committed to helping small businesses recover from the unprecedented economic effects of COVID-19.”
The SBA is continuing to accepted EIDL applications. The deadline to apply for an EIDL loan is Dec. 31, 2021.