NEW SBA EIDL Loan & Grant Application Deadlines
The SBA releases new rules on the SBA Covid-19 EIDL Loan and EIDL Advance Grant application deadlines. Small business owners and independent contractors will now have more time to apply for the EIDL Loan and EIDL Grant Advance.
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The SBA announces new application deadlines for the SBA EIDL loan and the SBA EIDL grant, meaning that now you have more time for your application to get processed by the SBA if you haven’t received the EIDL loan nor the grant. The new deadlines, that’s what we’re going to talk about in this video.
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We are recording this video on November 22nd, 2021. We always emphasize the date on the recording of any video related to the SBA EIDL loans, because these loans have been constantly changing, so that’s the importance of subscribing to our channel, that way you’re always up to date with the most current and correct information relating to these SBA loans.
As I mentioned, the SBA came out last Friday with a press release, basically where they are announcing new guidance towards new deadlines for the covid EIDL loans and grants. Let’s go over the changes.
The first change is very big, is that the EIDL loan and the targeted advanced applications will be accepted until December 31st and will continue to be processed after this date until funds are exhausted. What does this mean? If you are applying for an EIDL loan for the first time, the original rule said that you had to have your EIDL loan approved by December 31st, and since the processing times were approximately 21 days, basically that deadline to apply for the EIDL loan was the first week of December, so you would give enough time for the SBA to get your loan approved by December 31st. This changes now if you are applying for an SBA EIDL loan, you have until December 31st to submit your application, because the SBA will continue to process applications after December 31st until the funds are exhausted.
The same change goes for the EIDL Targeted Advance or better known as the EIDL grant (Remember this is a $10,000 grant which in order to for your business to qualify, you need to show at least a 30% reduction in revenue, and your business needs to be in a low-income community in order to get the full $10,000 grant). The grant had the same rule that you had to have the grant approved by December 31st, but now it has changed. You can now apply for the grant until December 31st and the SBA will continue processing EIDL grant applications after December 31st until the funds are exhausted.
Now, another change is this one, let me highlight it. It says Supplemental Targeted Advanced applications, what is that? Remember that there is the $10,000 grant, but on top of that if your business can show at least 50% reduction in revenue and is also located in a low-income community, you get an additional $5000 of grant money on top of the $10,000 EIDL grant. Now, this is a little bit different because SBA is saying that for the additional $5000 supplemental grant, they will not process supplemental grant applications after December 31st, they are saying that they suggest that you apply for this supplemental grant at least by December 10th, because they need enough time to process the application; so, this one is different.
Also, another change is the SBA is telling anybody who already received an EIDL loan that they can request an increase of the loan up to two years after the loan origination date, basically from the date you receive the funds, you have two years to apply for an increase with the SBA or until the funds are exhausted. This also changed because if you wanted an EIDL loan increase, you had to have the increase approved before December 31st, now this has changed; now the SBA is saying that after your loan origination date you have 2 years to apply for the increase or until the funds are exhausted. So, these are very big changes with SBA.
Another big change is that the SBA will continue to accept reconsideration applications. It says, if you have had your EIDL loan denied and you are in a reconsideration process, they will process the reconsideration applications after December 31st until the funds are exhausted. This is good news because many of you still have not received your ideal loan, you haven’t had it approved, you’re still waiting for the SBA grant, you haven’t had it approved and most of you were a little bit already stressed out because December 31st is around the corner and you have to have your loan approved by December 31st, at least now you have a little bit more time. But if you haven’t applied for the loan or grant you still have to apply as soon as possible, because the SBA will process these loans and grant applications for the applications that were received by December 31st, but they will continue processing applications until the funds are exhausted.
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