Helpful Information: Applying for Updated Economic Injury Disaster Loan (EIDL) Funding
September 27, 2021
The SBA issued changes for the EIDL loans including:
- Increasing the COVID EIDL Cap. The SBA will lift the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.
- Implementation of a Deferred Payment Period. The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after loan origination so that they can get through the pandemic without having to worry about making ends meet.
- Expansion of Eligible Use of Funds. COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.
A DLI member, Kelby Sankey, finance manager for Morellis Cleaners in Indianapolis, Indiana, who has gone through the process has complied some helpful information and tips. She shared the correct 4506-T form (no other forms can be used), the fax number for sending the 4506-T to the IRS as well as the PDF on signing up for a CAWEB portal.
If you’re eligible for more than $500,000, there are additional steps and that information isn’t included. The SBA is not expected to open that section of the program until October 8.