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Businesses get more time to repay EIDL loans


eidl loansBy Benjamin R. Bostic

Businesses and nonprofits that received a COVID-19 Economic Injury Disaster Loan (EIDL) can now wait up to 30 months from the loan date to begin repaying under a recent change by the U.S. Small Business Administration.

Though the SBA is not taking new COVID-19 applications, existing borrowers who did not receive their total eligible loan amount can request additional money for as long as the program has remaining funds, the agency said.  Borrowers seeking additional funds are encouraged to act quickly as the SBA estimates the funds will be exhausted by mid-April 2022.

Borrows should note that interest does accrue during the repayment deferment period. COVID-19 EIDLs are 30-year loans, and the interest rate for businesses is 3.75 percent and 2.75 percent for nonprofits. You can also repay the entire loan early without penalty.

A brief COVID-19 EIDL refresher

  • Borrowers can use the loans for regular operating expenses and working capital, including payroll, purchasing equipment, and paying off debt.
  • EIDL loans are not forgivable, but if an EIDL applicant received an advance of up to $10,000, they do not have to repay and the advance is not taxable.
  • Borrowers can seek up to $2 million, up from the previous $500,000 cap. The SBA requires collateral on loans over $25,000 and a personal guaranty for loans greater than $200,000.
  • The SBA lifted the COVID EIDL borrowing cap from $500,000 to $2 million. Again, the SBA is not accepting new loan applications, but existing borrowers with loans under the limit can seek to increase their loans.

For more information about COVID-19 EIDL, visit

Bottom line

While the SBA has provided additional flexibility regarding COVID-19 EIDL payments because interest accrues during the deferral period, your business or nonprofit may want to consider not waiting. Also, you can make partial payments during the deferral period.

The Boyer & Ritter team is ready to help with any questions regarding this or any other programs to help your company or nonprofit get the full benefits of COVID-19 economic relief.

Benjamin R. Bostic, CPA, is a principal of Boyer & Ritter and has advised business and nonprofit clients regarding the various pandemic relief programs. Reach Ben at 717-264-7456 or


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