The Small Business Administration (SBA) is offering the Economic Injury Disaster Loan (EDIL) to small businesses and nonprofit organizations that are suffering substantial economic injury as a result of COVID-19. These loans may be used for debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan.
The interest rate is 3.75% for small businesses and 2.75% for nonprofits. The first payment is deferred for one year. The deadline to apply has been extended to Dec. 31, 2021. The SBA has also extended deferment periods for all disaster loans (including EIDL) until 2022.