COVID-19: Turned down for EIDL? It’s not too late

By Michelle Price
UCBJ Managing Editor

NASHVILLE – For the many small businesses that were turned down for funding during the first round of the Economic Injury Disaster Loan (EIDL), there is still hope. The Small Business Administration (SBA) Tennessee District Office will host a live webinar on Friday, June 26 from 11 a.m. to noon with Deputy District Director Shawn McKeehan leading a discussion on the process for reconsideration and how to reapply. 

Registration for the webinar is free and can be done here. The live discussion will also include frequently asked questions regarding COVID-19 disaster services.

SBA’s EIDL program offers long-term, low interest assistance for a small business or non-profit organizations. These loans can provide vital economic support to help alleviate temporary loss of revenue. EIDL assistance can be used to cover payroll and inventory, pay debt or fund other expenses that are not already covered by a Paycheck Protection Program loan. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. 

To keep payments affordable for small businesses, SBA offers loans with long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year. Additionally, the EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid. The EIDL program will remain open until the funds are depleted or until 12/30/20. 

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