COVID-19 EIDL Program Expansion
From GBQ
Ohio Restaurant & Hospitality Alliance
Last Update 3 năm trước
Recently, the Small Business Administration (SBA) expanded its Economic Injury Disaster Loan (EIDL) program to help small businesses access working capital with favorable repayment terms. Several restauranteurs had applied for the Restaurant Revitalization Grant (RRG) but due to insufficient funding, many did not receive those funds. The COVID EIDL expansion is an alternate source of capital to restaurant companies to assist in the recovery from the pandemic.
What has changed compared to the original EIDL?
- Loans can be up to $2 million compared to the original maximum amount of $500,000
- Use of funds has been expanded to include prepayment of commercial and credit card debt
- Eligibility rules, including affiliation, are more aligned with those used for the RRG
It is important to remember that the EIDL is not a forgivable loan and must be paid back. However, the terms are favorable, allowing a low interest rate and 30 years to repay the loan. In order to qualify, your restaurant must have been in operation as of 2019 and the funds cannot be used to expand the business.