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SBA EIDL Deadline 12/31: What it Means for Businesses in 2022

·5 min read

SAN FRANCISCO, CA / ACCESSWIRE / December 5, 2021 / The U.S. Small Business Administration (SBA) popular COVID Economic Injury Disaster Loan (EIDL) loan program has a deadline of December 31, 2021 for certain businesses, but not all. This has caused a lot of confusion for small business owners and principals. For business entities that have never applied for an EIDL loan yet, the 12/31 deadline applies. For those businesses wanting to do a loan modification increase request up to the current $2 million maximum, or that have been denied in the past six months or less, and need to file a reconsideration request to appeal a decline, these will continue into 2022.

Confused and worried businessman wondering if his company will receive a SBA EIDL loan before the COVID EIDL funds run out. Image Credit: 123rf / Boggy22.

"There are many small business owners confused about the December 31st deadline. The only businesses that need to worry about that deadline are the ones who have never applied for the SBA EIDL COVID loan program before," said Marty Stewart, Chief Strategy Officer for Disaster Loan Advisors (DLA).

The DLA Strategic Advisory Team are SBA loan consultants that specialize in assisting business owners with multiple company entities, to help navigate the SBA EIDL loan program for maximum EIDL qualification. Companies that received prior SBA EIDL loans that need an increase or loan modification (up to $2M maximum), as well as EIDL loan reconsideration requests for those businesses that have been denied.

"Many companies that are in the process of loan modification increase requests, or reconsideration appeal requests within six months of receiving a decline letter from the SBA, will continue well into 2022 until the EIDL funding eventually runs out," continued Stewart.

SBA Deadlines for the COVID Economic Injury Disaster Loan (EIDL) Program

The SBA recently announced updated guidance regarding applicant deadlines for the COVID EIDL disaster loan program set to expire on December 31, 2021 for certain businesses.

  • EIDL loan and Targeted Advance applications will be accepted until December 31 and will continue to be processed after this date until funds are exhausted.

  • Supplemental Targeted Advance applications will be accepted until December 31; however, the SBA may be unable to process some Supplemental Targeted Advance applications submitted near the December 31 deadline due to legal requirements. The SBA cannot continue to process Supplemental Targeted Advance applications after December 31 and strongly encourages eligible small businesses to apply by December 10 to ensure adequate processing time.

  • Borrowers can request increases up to their maximum eligible loan amount for up to two years after their loan origination date, or until the funds are exhausted, whichever is soonest.

  • The SBA will accept and review reconsideration and appeal requests for COVID EIDL applications received on or before December 31 if the reconsideration/appeal is received within the timeframes in the regulation. This means six months from the date of decline for reconsiderations and 30 days from the date of reconsideration decline for appeals - unless funding is no longer available.

Economic Injury Disaster Loan (EIDL) Program Enhancements

In September 2021, SBA Administrator Isabella Casillas Guzman announced major enhancements to the COVID Economic Injury Disaster Loan (EIDL) program.

Key changes announced by the SBA included:

  • Increasing the COVID EIDL Cap. The SBA will lift the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.

  • Implementation of a Deferred Payment Period. The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after loan origination so that they can get through the pandemic without having to worry about making ends meet.

  • Establishment of a 30-Day Exclusivity Window. To ensure Main Street businesses have additional time to access these funds, the SBA will implement a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less. Approval and disbursement of loans over $500,000 will begin after the 30-day period.

  • Expansion of Eligible Use of Funds. COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.

  • Simplification of affiliation requirements. To ease the COVID EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund (RRF).

End-of-Year (EOY) Deadline Should Prompt Action by Small Business Owners

"The best strategic move for companies to make is to set your loan reconsideration or loan modification increase in motion as soon as possible. It will help set your business up for success going into 2022," said Stewart.

About Disaster Loan Advisors™

Disaster Loan Advisors™ is a trusted team of professionals dedicated to saving small businesses and companies from lost sales, lost customers, lost revenue and rescuing your business from potential financial ruin from this COVID-19 / Coronavirus disaster, and the recent Hurricane Ida 2021 declared disaster.

DLA specializes in assisting ownership groups with multiple business entities, multiple location restaurants and retail groups, and other complex situations that require an expert to be brought in to assess the situation and create the most strategic path forward.

Has Your Small Business or Company Suffered Financial Loss due to COVID, Hurricane Ida, or Other Natural Disaster? Was Your SBA Loan Application Denied for an EIDL Loan? Are You Looking for an Increase to Your Existing SBA EIDL Loan (up to $2 Million) Need Strategic Guidance Before You Make Your Next Move?

Disaster Loan Advisors
Elena Goldstein
Director of Media Relations
877-463-9777 ext. 3

Connect with Disaster Loan Advisors via social media:

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For a strategic exploratory conversation, schedule a free consultation call by visiting:


SOURCE: Disaster Loan Advisors

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