Yesterday, I wrote about the ability to apply for additional EIDL monies. Some further clarification will be helpful.
In a typical EIDL program, borrowers can apply for up to $2,000,000 of relief. While the program operated in this manner at the beginning of the Covid-19 crisis, and some borrowers could get larger loans, the SBA then decided to cap loans at $150,000 to handle the demand.
The $150,000 cap still holds, and the current program for Covid-19 expires on December 31st. So if you have not applied for an EIDL yet, you still have time. And if you received an EIDL for under $150,000, you can apply for more using the procedure I outlined in yesterday's post. But you will be capped at a maximum of $150,000.
It's also important to note that if you did receive an EIDL and risk shutting your business, according to the loan agreement you signed, you have a responsibility to go back to the SBA and ask for money. They can deny your request, but you need to let them know that your business is at risk of shutting down.
All of this being said, December 31st is just around the corner, and it's imperative that Congress sorts out the next relief act and gets business owners the help they desperately need. The EIDL should be a vital component of this relief, as I wrote about in my inc.com column last week.