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Sonora, CA – Another round of relief funding is out for small businesses still struggling with COVID-19 impacts.
According to Small Business Administration officials, businesses not yet in line can apply for Economic Injury Disaster Loan (EIDL) funding.
The program ran out of its initial monies on April 15 and reopened applications May 4 with the caveat that the second round was earmarked for agricultural and farming operations only.
All small businesses may apply for the latest funds, which were announced yesterday.
Up to $10,000 is still available to applicants as an emergency advance, which a business does not have to repay. Businesses who apply – even if not approved for a loan — receive $1,000 per employee still on the payroll, up to ten employees. The amount of the advance is deducted from the total loan eligibility, however.
Applicants who already submitted will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for reapplying.
The loans may be used to pay debts, payroll, accounts payable and other bills that cannot otherwise be paid because of the disaster’s impact, and not already covered by a Paycheck Protection Program (PPP) loan. The interest rate is 3.75% for small businesses. The interest rate for nonprofits is 2.75%. To keep payments affordable for small businesses, SBA offers loans with long repayment terms, up to a maximum of 30 years with the first payment deferred for one year.
To access the COVID-19 EIDL application process, click here.