Newsroom
September 09, 2021
SBA publishes IFR amending regulations governing EIDL loans
The Small Business Administration (SBA) Wednesday published an interim final rule (IFR) to amend the regulations governing disaster-related economic injury disaster loans (EIDL) and COVID EIDL loans. The changes made by the IFR are applicable to any EIDL loan made on or after Sept. 8.
The changes made by the IFR include:
- changing the definition of "affiliation" for COVID EIDL loans with the definition in section 5003 of the American Rescue Plan Act;
- changing the appeals process for a second decline of a loan application to be routed to the Director of the Disaster Assistance Processing and Disbursement Center;
- extending the eligibility of COVID EIDL loans to businesses in designated "hard hit industries" that have over 500 or fewer employees per physical location; and
- expanding eligible uses of COVID EIDL loan proceeds to include payments on all forms of business debt, including loans owed by a federal agency, incurred both before or after submitting an EIDL application.
In addition, the IFR adds a new regulation stating that entities that are part of a single corporate group shall not receive more than $10 million of COVID EIDL loans in the aggregate.
NAFCU will continue to advocate for program improvements and transparent guidance to ensure credit unions can lend effectively through the SBA's programs.