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The Small Business Administration (SBA) Thursday announced additional changes to the regulations governing the COVID economic injury disaster loan (EIDL) program to allow small businesses "greater and more flexible support from the over $150 billion in available COVID EIDL funds." The changes made to the program are applicable to any EIDL loan made on or after Sept. 8.

"NAFCU commends the Small Business Administration (SBA) and Administrator Isabella Casillas Guzman for enhancing the COVID Economic Injury Disaster Loan (EIDL) program to provide extended relief to small businesses," said NAFCU President and CEO Dan Berger in response to the announcement. "By increasing the loan cap to $2 million, Main Street small businesses will now have a low-rate option to obtain capital to maintain operations and pay their workers.

"With economic recovery still underway, and the exhaustion of the Paycheck Protection Program and Restaurant Revitalization Fund many small businesses are still in need of assistance," Berger added. "Credit unions will continue to do whatever they can to help guide members and small businesses."

The COVID EIDL program offers a federal disaster relief loan designed to better serve and support our small business communities still reeling from the pandemic, especially hard-hit sectors such as restaurants, gyms, and hotels. 

The changes made by the SBA include:

• increasing the COVID EIDL loan cap from $500,000 to $2 million;
• implementation of a two-year deferred payment period to allow small business owners time to recover;
• establishment of a 30-day exclusivity window for the SBA to approve and disburse funds for loans of $500,000 or less;
• expansion of the eligible use of funds to include prepay commercial debt and payments on federal business debt; and
• simplification of affiliation requirements to ease the COVID EIDL application processes for small businesses.

For more information, including how to apply, visit the SBA's EIDL program webpage; access the SBA's COVID EIDL program FAQs here.

NAFCU will continue to advocate for program improvements and transparent guidance to ensure credit unions can lend effectively through the SBA's programs.