SBA clarifies COVID-19 EIDL application deadlines

By Jeff Drew

The U.S. Small Business Administration (SBA) released updated guidance Friday regarding applications for loans, advances, and appeal requests with the COVID-19 Economic Injury Disaster Loans (EIDL) program.

While the previously established Dec. 31 deadline remains in place, the SBA said it strongly recommends that businesses seeking a Supplemental Targeted Advance submit their application no later than Dec. 10. The agency cannot continue to process Supplemental Targeted Advance applications after Dec. 31, which means that applications received close to that date might not complete the review process in time.

In contrast, EIDL and Targeted EIDL Advance applications received by Dec. 31 will continue to be processed after that date until all funds are exhausted.

The SBA said it would accept and review reconsideration and appeal requests received on or before Dec. 31, provided that the reconsideration or appeal is received within six months from the date of decline for reconsiderations and 30 days from the date of reconsideration decline for appeals — provided funding is still available.

The COVID-19 EIDL programs are designed to provide funding access to small businesses hurt economically during the COVID-19 pandemic. The funding comes in three forms, as follows:

  • COVID-19 EIDL loans have a 30-year term with fixed interest rates of 3.75% for small businesses, including sole proprietors and independent contractors, and 2.75% for not-for-profits. Loan proceeds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt. Loan payments are deferred for the first two years, though interest will accrue. Payments on interest and principal will then take place over the final 28 years of the loan.
  • A Targeted EIDL Advance of up to $10,000 is available to businesses that are located in low-income communities, have 300 or fewer employees, and suffered a revenue loss of more than 30% due to COVID-19.
  • A Supplemental Targeted Advance is available to Targeted EIDL Advance recipients that have 10 or fewer employees and saw revenues drop at least 50% due to COVID-19. The cap on the advance is $5,000, meaning that businesses face a total cap of $15,000 if they receive both types of advance grants. Neither of the advance grants needs to be repaid.

The guidance issued Friday by the SBA comes a little more than two months after the agency announced major modifications to the EIDL program designed to make the money more accessible to more businesses. The most significant change was raising the cap on EIDL loans from $500,000 to $2 million.

According to a report issued Thursday, the SBA has approved:

  • 3.84 million EIDL loans totaling nearly $300 billion;
  • More than 465,000 Targeted EIDL Advances totaling a little more than $4 billion;
  • And more than 372,000 Supplemental Targeted Advances totaling nearly $1.9 billion.

AICPA experts discuss the latest on the COVID-19 EIDL and other small business aid programs during a virtual town hall held every other week. The webcasts, which provide CPE credit, are free to AICPA members and $39 for nonmembers. Go to the AICPA Town Hall Series webpage for more information and to register. Recordings of Town Halls are available to view for free on AICPA TV.

The AICPA's Paycheck Protection Program Resources page houses resources and tools produced by the AICPA to help address the economic impact of the coronavirus.

For more news and reporting on the coronavirus and how CPAs can handle challenges related to the outbreak, visit the JofA's coronavirus resources page or subscribe to our email alerts for breaking PPP news.

Jeff Drew ( is a JofA senior editor.

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