Application deadline for SBA COVID loans is Friday

Friday is the final deadline for small businesses and nonprofits that are struggling during the pandemic to apply for a federal disaster loan, officials said.

The U.S. Small Business Administration announced it will accept first-time applications for its COVID-19 Economic Injury Disaster Loan program, or EIDL, "until Dec. 31."

The loans are up to $2 million per applicant with a 30-year term. The interest rate is 3.75% for businesses and 2.75% for nonprofits.

Those who received an EIDL loan in 2020 or in early 2021 — when the maximum amount was under $2 million — have more time to seek additional money. They have two years from when their loan was made or until loan funds are gone to increase their loan amount, said Veronica Pugin, senior adviser in the SBA’s Office of Capital Access.

The longer time frame also applies to appeals from borrowers whose COVID EIDL applications were turned down by SBA.

Nearly 3.9 million COVID EIDL loans, totaling $312 billion, have been made since the coronavirus struck in early 2020. In New York State, there are 329,646 loans, totaling more than $30 billion, the third-most in the country after California and Florida, according to agency data as of Dec. 16.

Questions about EIDL loans may be sent to disastercustomerservice@sba.gov or by calling 833-853-5638.

Grant deadline

Friday’s deadline also applies to applications for Targeted EIDL Advance and Supplemental Targeted Advance grants. The grants of up to $15,000 are for businesses and nonprofits that were hit hard by the pandemic and are in poor neighborhoods.

However, SBA said applicants should submit their paperwork immediately because the agency "may be unable to process some [applications] submitted near the Dec. 31 deadline due to legal requirements. The SBA cannot continue to process Supplemental Targeted Advance applications after Dec. 31," the agency said.

Grant applicants must first apply for an EIDL loan and then SBA "will invite [them] via email to apply for one of the Advance programs if [they] are located in a low-income area," the agency said.

Questions about the grant programs may be sent to TargetedAdvance@sba.gov. More information is available at sba.gov/eidl.

By James T. Madore

james.madore@newsday.comJamesTMadore

James T. Madore writes about Long Island business news including the economy, development, and the relationship between government and business. He previously served as Albany bureau chief.