Small businesses have until December 31 to apply for COVID-19 relief loans

Small businesses have until December 31 to apply for COVID-19 relief loans
(Source: Pexels user Alexander Mills)

WASHINGTON, D.C. (WLBT) - Small businesses will have December 31 to apply for a COVID-19 loan program administered by the Small Business Administration.

On Wednesday, the SBA announced that it had extended the deadline to apply for the Economic Injury Disaster Loan, which was put in place to provide economic relief to small businesses, nonprofits, and agricultural businesses during COVID-19.

The program was passed as part of a previous COVID relief package. Previously, applicants had until December 27 to seek funding.

“Following the president’s declaration of the COVID-19 pandemic, the SBA has approved over 3.6 million loans through our Economic Injury Disaster Loan program nationwide,” said Administrator Jovita Carranza.

“The EIDL program has assisted millions of small businesses, including nonprofit organizations, sole proprietors, and independent contractors, from a wide array of industry and business sectors.”

Loans are offered at 3.75 percent interest rates for small businesses and 2.75 percent interest for nonprofits, and come with a 30-year maturity, according to an SBA release.

Recipients are automatically granted a one-year deferment before monthly payments begin.

To be eligible groups can employ no more than 500 employees, according to the SBA website.

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