SBA is authorized to make COVID EIDL loans through December 31, 2021, or when funds are exhausted, whichever occurs sooner. Applicants should read and understand the requirements for submitting an application.
| Product | Loan directly from SBA that must be repaid. Low-interest, fixed-rate, long-term loan to help overcome the effects of the pandemic by providing working capital to meet operating expenses |
| Uses of Proceeds | Working capital to make regular payments for operating expenses, including payroll, rent/mortgage, utilities, and other ordinary business expenses, and to pay business debt incurred at any time (past present or future) |
| Maximum Loan Amount | $2 million. Note: SBA will begin approving loans greater than $500,000 on October 8, 2021 |
| Loan Term | 30 years |
| Interest Rate | Businesses: 3.75% fixed Private nonprofit organizations: 2.75% fixed |
| Payment Deferment | Payments are deferred for the first 2 years (during which interest will accrue), and payments of principal and interest are made over the remaining 28 years. No penalty for prepayment. |
| Fees | For loans $25,000 or less: No fees if applying directly through SBA For loans greater than $25,000: One-time $100 fee for filing a lien on borrower’s business assets plus costs to file lien on real estate when applicable For loans greater than $500,000 where SBA is taking real estate as collateral: One-time $100 fee for filing a lien on borrower’s business assets. Additionally, the borrower will be responsible for recording the real estate lien and paying the associated fees. |
| Collateral | Required for loans greater than $25,000 |
| Personal Guaranty | Required for loans greater than $200,000 |
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