Can Y'all Apply for an EIDL Loan Twice?
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The COVID-19 pandemic has been a very long emergency. Pocket-size businesses dealing with the pandemic and possibly other disasters as well may be searching for any and all relief bachelor to them. The Small Business Administration (SBA) offers emergency funding through its Economic Injury Disaster Loan (EIDL) programme. In normal times, EIDLs are bachelor to businesses located in areas where a declared disaster, such as a hurricane or wildfire, took place. But in 2020, the SBA also implemented a separate COVID-nineteen EIDL plan for businesses across the land that were negatively impacted by the pandemic. How much can y'all really borrow for your pocket-size concern through the EIDL programme right now? Discover out whether or not you can get more than one EIDL. Can You Apply for an EIDL Loan Twice?
If you lot're wondering if you can use for a 2d EIDL, the answer is "it depends." Here are three different scenarios to illustrate how the procedure works. - Your original EIDL application was denied. In this case, yous should have received a reason for why your application wasn't accepted. If yous tin can accost the SBA'south concerns, then you can initiate an EIDL reconsideration request.
- You want a second EIDL. Y'all may employ for only 1 COVID-19 EIDL. Just if your business is located in a alleged disaster expanse and it experienced additional economic injury, you may apply for a carve up EIDL as well equally a COVID-19 EIDL.
- You received COVID-xix EIDL funds before the loan limit increased either in April 2021 or in September 2021. In either case, yous can request a larger loan amount. Technically, this isn't considered getting an boosted loan. Rather, you're just taking advantage of new rules regarding loan limits. The SBA will contact you if you're eligible for additional funds.
Tin can Yous Increase Your EIDL Size?
In some cases. The SBA increased the size of COVID-xix EIDLs, starting with loans canonical Apr. seven, 2021 or subsequently. That maximum loan corporeality was $500,000. Every bit of Sept. 8, 2021, the maximum has been increased again, this time to $2 million. To bank check your eligibility, compare the new loan limit to your current loan amount. While there'southward no straight way to apply for more funds on the SBA's public website, yous should receive instructions from the SBA on how to move forward if you lot choose. EIDL Size Standards
In social club to qualify for COVID-19 EIDLs, eligible businesses must have 500 employees or fewer. In improver to small businesses, agricultural enterprises and co-ops meeting the same employee limits may also authorize for a COVID-nineteen EIDL. SBA Size Standards
Many SBA financing programs refer to "size standards." This is the maximum size a company can be and all the same qualify every bit a small business. Each industry has its own size standard. Business organisation owners can apply the SBA's Size Standard Tool to check eligibility. PPP Size Standards
Looking at some other program created to assistance stem the financial touch of the COVID-xix pandemic, Paycheck Protection Payment (PPP) borrowers could meet size standards in a few different ways. In lodge to be considered small businesses they must authorize using one of the following size standards: - 500 employees or fewer
- Average annual receipts less than the industry-specific threshold (you tin can use the Size Standard Tool to check)
- Alternative-based measures such as net worth and/or internet income
How to Request an Increment to Your Existing EIDL Loan
The SBA website links to the requirements and the form to request an increase to your COVID-19 EIDL loan. SBA loan rates are typically much lower than those for private loans for minor businesses. And then if your business organisation does need additional funding, this could be a practiced opportunity. However, EIDL loans are not forgivable. Dissimilar PPP loans, they must be repaid in total. Plus, that maturity term tin can be as long as xxx years. That'southward a long time for your business to repay debt if the funds aren't actually needed. And then it'due south mostly wise non to borrow more than yous need. EIDL Maximum Loan Amounts
As of Sept. 8, 2021, the SBA raised its COVID-19 EIDL limits. When calculating your EIDL loan corporeality, the current limit is $ii million. Any COVID-xix EIDL corporeality over $25,000 requires collateral, typically in the form of a full general security agreement from the SBA. This uses your business concern assets as collateral for the loan. The skilful news is that you don't have to offering a personal guarantee to qualify for these funds. PPP Maximum Loan Amounts
The PPP plan is separate from the COVID-xix EIDL program and its maximums are very different. First draw PPP loans came with a maximum loan amount of $10 meg. The second round of funding was express to $2 meg. Businesses could calculate their eligible limit by multiplying their monthly payroll costs by ii.v, or by iii.5 if in the nutrient or hospitality industry. When Is the Borderline to Apply for EIDL Funding for COVID-nineteen Relief?
COVID-19 EIDL applications must be submitted by December 31, 2021. Yet, you can still asking additional funds after the deadline. If y'all borrowed less than you were offered and after changed your heed, you have two years afterwards the loan promissory appointment. The Takeaway
Navigating your company's finances during a pandemic or other disaster is complicated. Yous tin arrive a scrap easier by comparing several small business loan options with i simple online form. Lantern past SoFi offers a single small business awarding form with access to multiple loan offers for your company.
Photo credit: iStock/mphillips007 The tips provided on this website are of a general nature and do not have into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your ain circumstances. SOLC0721132
Frequently Asked Questions
Can you apply for a second EIDL loan?
Can I get multiple EIDL loans?
Can you get more than than one EIDL loan or grant if you have more than one concern?
What is the maximum EIDL loan amount I tin become for COVID relief?
Will the SBA run out of EIDL funding?
Most the Author
Lauren Ward is a personal finance expert with almost a decade of experience writing online content. Her work has appeared on websites such as MSN, Fourth dimension, and Bankrate. Lauren writes on a diversity of personal finance topics for SoFi, including credit and cyberbanking.
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