SBA Expands EIDL Program To Boost Loans

October 2021 ISSUE September 21, 2021 Updated October 1, 2021
Practice Management Financing
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Looking for long-term, low-interest, fixed-rate practice financing (or refinancing)? If so, a COVID-19 Economic Injury Disaster Loan (EIDL) from the SBA may be your answer. Under this program, which runs through December 31, 2021, your practice can receive a loan repayable over a 30-year term, at a fixed interest rate of only 3.75%.

Recently, the U.S. Small Business Administration (SBA) announced major improvements to the EIDL program, as it seeks to dole out more than $150 billion in available funding. The SBA announced it was implementing the following key changes, effective immediately, making it easier for small businesses to recover from the economic hit from the pandemic:

  • Quadrupling the COVID-19 EIDL loan limit from $500,000 to $2,000,000.
  • Expanded use of proceeds – Loan proceeds can be used for normal operating expenses including payroll, rent (or mortgage payments), utilities, and other operating expenses, as well as for purchasing equipment, paying debt, and working capital. Under these new rules, loan proceeds can be used to make debt payments including monthly installments, deferred interest, and prepayment on business debt, whether the loan was incurred before or after submitting your SBA loan application. Previously, funds could only be used for working capital needed to sustain the business until it could resume normal operations.
  • Longer deferred payment period – Under the revised program, loan repayments won’t begin until two years after the loan origination. Debt payments are deferred for the first two years, during which time interest will accrue, with payments of principal and interest made over the remaining 28-year loan term. The loan can be prepaid at any time without penalty.


  • 30-day exclusivity window – In order to ensure Main Street businesses have time to access these funds, the SBA is implementing a 30-day exclusivity window for approving and disbursing loans of $500,000 or less. Approval and disbursement of loans over $500,000 will begin on October 8, 2021.

For more information, call the SBA’s Customer Service Center at 800.659.2955 or visit the SBA's COVID-19 EIDL page.

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