CARES Act: SBA Issues Updated Guidance on COVID-19 Economic Injury Disaster Loan Program | Practical Law

CARES Act: SBA Issues Updated Guidance on COVID-19 Economic Injury Disaster Loan Program | Practical Law

The US Small Business Administration (SBA) issued updated guidance about applicant deadlines for its COVID-19 Economic Injury Disaster Loan (COVID-19 EIDL) program. This program is designed to serve and support small business communities that are suffering from the COVID-19 pandemic.

CARES Act: SBA Issues Updated Guidance on COVID-19 Economic Injury Disaster Loan Program

by Practical Law Finance
Published on 22 Nov 2021 • USA (National/Federal)
The US Small Business Administration (SBA) issued updated guidance about applicant deadlines for its COVID-19 Economic Injury Disaster Loan (COVID-19 EIDL) program. This program is designed to serve and support small business communities that are suffering from the COVID-19 pandemic.
On March 27, 2020, the US government passed the CARES Act in response to the COVID-19 crisis. Under Section 1112 of the CARES Act, the US Small Business Administration (SBA) received funding and authority to modify existing loan programs to assist small businesses adversely impacted by COVID-19. One of these existing loan programs was the SBA's Economic Injury Disaster Loan (EIDL) program. For information on EIDL, see CARES Act: Stimulus for Small Businesses Under the SBA Checklist and SBA: Economic Injury Disaster Loans.
On November 19, 2021, the SBA issued a press release that announced the following updated guidance about applicant deadlines for loans (COVID-19 EIDL loans) and advances (COVID-19 EIDL advances) under its COVID-19 EIDL program:
  • The SBA will accept applications for COVID-19 EIDL loans and COVID-19 EIDL advances until December 31, 2021 and will process these applications after December 31, 2021 until funds are exhausted. However, because legal requirements may prevent the SBA from processing some applications for additional COVID-19 EIDL advances (supplemental targeted EIDL advances) if these applications are submitted close to the December 31, 2021 deadline, the updated guidance encourages any entity eligible for a supplemental targeted EIDL advance to apply by December 10, 2021. For more information on supplemental targeted EIDL advances, see CARES Act: Stimulus for Small Businesses Under the SBA Checklist: Additional EIDL Advances Under the 2021 CAA and Additional EIDL Advances Under ARPA-21.
  • A borrower can request an increase in its COVID-19 EIDL loan up to the maximum for which it is eligible for up to two years after the origination of the COVID-19 EIDL loan. On September 9, 2021, the SBA announced an increase in the maximum amount of COVID-19 EIDL loans that certain entities can borrow (see Legal Update, CARES Act: SBA Announces Enhancements to COVID-19 Economic Injury Disaster Loan Program).
  • Unless funding is no longer available, the SBA will accept and review a reconsideration or appeal request for a COVID-19 EIDL Loan application if it receives the request by December 31, 2021 and within:
    • six months from the date of decline (for a reconsideration); or
    • 30 days from the date of reconsideration decline (for an appeal).
For more information on COVID-19 EIDL Loans and COVID-19 EIDL Advances, see: