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SBA’s Economic Injury Disaster Loan window closes Dec. 31

Small businesses and nonprofits adversely affected by the COVID-19 pandemic are encouraged to consider applying for the U.S. Small Business Administration’s COVID-19 Economic Injury Disaster Loan (EIDL) during the month of December.

Applications must be submitted via SBA’s online application link no later than Dec. 31, 2020 to be considered, the agency said.

A total of 23,674 EIDL loans for $1.4 billion have been approved for small businesses and nonprofits in Puerto Rico as of Nov. 23, 2020. In addition, 39,544 Puerto Rico-based small businesses took advantage of the Paycheck Protection Program, which closed Aug. 8, 2020, bringing more than $1.8 billion in funds to the island, most of which is eligible for full forgiveness.

Small businesses with less than 500 employees operating prior to Feb. 1, 2020 may still apply for EIDL. Interest rates are 3.75% for small businesses, and 2.75% for nonprofits. Payments are deferred for a year, and the loan may be repaid at any time within the 30-year maturity with no pre-payment penalties.

“In these uncertain times for small entrepreneurs, EIDL and PPP have been an extraordinary source of funds to save jobs and preserve some cash flow level,” said María de los Ángeles de Jesús, SBA’s deputy district director for Puerto Rico and U.S. Virgin Islands.

The streamlined online application takes about 15 minutes on average to complete. If approved, small businesses struggling to meet financial obligations and operating expenses that could have been met had the disaster not occurred, will have access to up to six months of working capital, up to $150,000. If the application is denied, small businesses will still have up to six months, through June 2021, to apply for reconsideration.

The SBA’s Puerto Rico outreach and marketing specialist will hold four additional online EIDL webinars on Dec. 21, 23, 28 and 30, covering application form guidance, reasons for denial, reconsideration process and other resources, the agency announced.

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This story was written by our staff based on a press release.

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