Additional EIDL Options Available for Small Businesses

The White House and the U.S. Small Business Administration (SBA) today announced an overhaul to the Economic Injury Disaster Loan (EIDL) program, increasing the loan cap and expanding the ways small business restaurants can use the funds. The announced changes include:

An increase in the loan cap amount to $2 million, from a current cap of $500,000. Eligible businesses that have already received an EIDL loan at a smaller loan cap can apply to increase their loan to the max for which they’re eligible based on the SBA calculation. Requirements for businesses that are affiliated will now mirror the Restaurant Revitalization Fund. EIDL funds can be used to pre-pay business debt, which means that small business restaurants carrying higher-interest commercial debt, or even credit-card debt acquired over the last year, can use an EIDL to pay outstanding balances in one lump sum.“At a time when there is still an extreme need for small business restaurants to access working capital…