On December 31st, some of the EIDL loan and grant programs helping small business across the US ended — but not fully. In fact, there's good news from an SBA spokesperson. There's enough existing funding at the SBA to fund all EIDL applicants up to their full loan amount. Here's the latest and what you need to know if you're waiting for EIDL funding.
No New EIDL Loan or Grant Applicants Will Be Accepted by the SBA
Friday, December 31st was the last day to apply for EIDL loans or Targeted EIDL grants. Nearly 4 million businesses across the U.S. have received COVID EIDL loans since the program was started in March 2020 with the passage of the CARES Act.
The Targeted EIDL grants were up to $10,000 grants — an extension of the popular EIDL grants from the CARES Act as well but "targeted." Only small businesses that were located in "low-income areas" as defined by Census data, and experienced a certain revenue decline were eligible. Around 600,000 small businesses have received the Targeted EIDL grants.
EIDL Reconsiderations Were Also Due On December 31st
The SBA had also said that EIDL reconsideration emails or letters must have been submitted by the end of the year too. If you were denied for an EIDL loan or grant, you had to get in a letter by then. In most cases this was an email to "pdcrecons@sba.gov" with some information on your reconsideration request.
As for reconsideration back and forth — a loan officer asking follow up questions, for example — as far as we know, this back-and-forth can continue to work toward a resolution on your application.
EIDL Increase Requests Will Still Be Accepted—And There is Plenty of EIDL Funding Left
As per the SBA, EIDL loan recipients have 2 years from their loan origination date to apply for an EIDL increase. The basic formula to calculate your maximum eligible loan amount is your 2019 gross revenue minus 2019 cost of goods X2. There are exceptions to this however, but the maximum amount is $2M.
Many borrowers have asked when the best time to request an increase might be. In SBA's past communications, they've always said increases are available "as long as funding is available." Some borrowers have been worried about the SBA running out of money to fund EIDL increases.
According to an article by Yahoo Finance on Saturday January 1st, an SBA spokesperson said this:
"The SBA has enough in available funding to continue supporting all EIDL applicants up to their full, entitled loan amount."
This was the first time we've heard the SBA explicitly say that available funding isn't an issue, and is a strong statement saying: If you're eligible, we'll fund what you're entitled to.
What's Next? EIDL Funding and Other Small Business Grants and Loans
The SBA will still work with EIDL borrowers — remember these are 30 year loans so we're talking about a long-term relationship here. If you want personalized EIDL or funding help from our expert team, check availability and book a spot here. Join the tens of thousands of others who've collectively received over a billion in grants, loans, and lines of credit.
How Else Can Skip Help? Whether you need help navigating small business funding – like SBA loans, grants, or other financing options–or help with other government-related services – like TSA PreCheck or DMV appointments — skip the red tape.
