What is a COVID EIDL loan?
In response to the COVID-19 pandemic, SBA was given the authority to make low-interest fixed-rate COVID EIDL loans to help small businesses and other entities overcome the effects of the pandemic by providing borrowers with working capital to meet ordinary and necessary operating expenses.
What can I use the loan proceeds for?
Borrowers may use COVID EIDL working capital loan proceeds to make regular payments for operating expenses and to:
• Pay or pre-pay business non-federal debt incurred at any time (past or future), including monthly payments, payments of deferred interest
• Pay regularly scheduled payments on federal debt
• Other ordinary business expenses