Recently, new guidance on the COVID-related Economic Injury Disaster Loans (EIDL) Program from the Small Business Administration (SBA) has been announced. These are loans with relatively low interest rates for small business and independent contractors that have been negatively affected economically by the COVID-19 pandemic.  

I know a number of small businesses and independent contractors may have gotten short changed out of sufficient EIDL funding under the previous administration. Recently, there has been an effort by the SBA to go back and try to correct that– given the law as it was written under the previous administration simply was not followed with respect to this. That means some small businesses only received one-tenth of what they should have received from the SBA. 

The only caveat is, now, this program has been separated into EIDL and Targeted EIDL. Targeted EIDL is considered more urgent relief. If you are a previous EIDL applicant, to be eligible for Targeted EIDL, you must meet the additional requirement of being located in a low-income community. 

There is a tool to help you determine whether your business is in a low-income community.

Once you put in your business address, if it’s shaded in purple, that means you’re in a low-income community.

This should be a reminder we need to start looking for office space in low-income communities if it makes sense.

The non-Targeted EIDL application is available at:

The non-Targeted EIDL loans are structured to provide 24 months of economic injury relief with a maximum loan amount of $500,000. The previous maximum (pre April 6th) was $150,000.

The first payment for EIDL loans disbursed in 2020 won’t be due until 24 months after origination, and the first payment for EIDL loans disbursed in 2021 won’t be due until 18 months after loan origination. These are referred to as deferment periods. These loans have 30 year maturities with 3.75% interest rates for small businesses and independent contractors. 

To be clear, this is a funding opportunity separate from the Paycheck Protection Program.

I’ll try to give you some additional information on this as it becomes available. Small business owners, let’s do what we can to stay open.


“Covid-19 Economic Injury Disaster Loan.” Accessed 4/2/2021.

“Small Businesses Can Get Another $500,000 from the SBA.” Accessed 4/2/2021.


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