The U.S. Small Business Administration has resumed taking new applications for disaster loans from all eligible businesses and nonprofits, officials said.
SBA shut down its online application portal for the Economic Injury Disaster Loan program on April 16 after exhausting the $17 billion authorized by Congress. The agency didn’t reopen the portal when an additional $60 billion was authorized, saying more time was needed to process the more than 5 million applications received.
In May, SBA started taking applications again – but only from farms and other agricultural businesses, and only for the EIDL Advance grant of up to $10,000 per applicant. The Advance amount is $1,000 per employee.
SBA is now accepting applications from all comers if they have 500 or fewer employees and have been impacted by the coronavirus pandemic. To apply, go to covid19relief.sba.gov/#/
“With the reopening of the EIDL assistance and EIDL Advance application portal to all new applicants, additional small businesses and nonprofits will be able to receive these long-term, low-interest loans and emergency grants,” said SBA administrator Jovita Carranza.
Loans are for up to $2 million per applicant and are funded by the U.S. Department of Treasury. The interest rate is 3.75% for businesses and 2.75% for nonprofits, with a 30-year term.
The Long Island Association business group has asked Congress to lower the interest rate to 1%.
Businesses and nonprofits who previously applied for an EIDL and haven’t received a decision from SBA do not need to reapply, said Matt Coleman, a spokesman for the agency’s Region II, which includes New York State. “If you’ve applied already, no need to reapply. You’re already in line and your application is being processed,” he said on Monday.