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Does Your Business Qualify for A $10,000 EIDL Grant in 2021?
The SBA’s Economic Disaster Injury Loan (EIDL) program has officially been replenished in the new stimulus bill that was recently signed into law. In the bill, roughly $20 billion dollars has been allocated for new, targeted EIDL Grants for businesses in low-income communities.
EIDL loans are fixed-rate low interest loans for small businesses impacted by the COVID-19 pandemic. As part of the EIDL program, businesses that apply can receive a forgivable $10,000 EIDL Advance Grant. EIDL loans offer 3.75% interest rates (2.75% for non-profits) and up to 30-year repayment terms.
During this newly replenished round of funding, there are stricter qualifications for EIDL Grants. In addition to the requirements in the original CARES Act, eligible businesses, independent contractors, gig workers, and self-employed individuals are eligible for up to $10,000 in grants that do not have to be repaid only if they meet certain criteria.
While the SBA has announced that application deadline will be December 31, 2021, it’s important to note that the grant will close when funds run out. If you are eligible, it is imperative to apply right away.
Key points of the renewed EIDL program to be aware of include:
- Maximum Loan Amount is $2 Million Dollars
- Forgivable Grants up to $10,000
- Low Fixed Interest Rates: 3.75% or 2.75% for Non-Profits
- Repayment Terms up to 30 Years
- Deferred Payments for 12 Months
- You Must Employ Less Than 300 Employees
- Your Business Must Be Located in a Low-Income Community
- Must Have Been in Operation Prior to January 31, 2020
- Your business must have suffered an economic loss of greater than 30% during an 8-week period between March 2, 2020, and December 17, 2021, relative to a comparable 8-week period before March 2, 2020.
If your business qualifies, you may receive $10,000 that you don’t have to pay back. Applications for the Economic Injury Disaster Loan (EIDL) grant will be available on January 17, 2021. For more information about the EIDL, PPP, or any of our small business funding services, contact us at (844) 284-2725 or click here.