The SBA has announced that the deadline to apply for economic injury disaster loans has been extended to Dec. 31, 2021 as a result of the COVID-19 relief bill passed by Congress and signed by President Donald Trump on Dec. 27, 2020.

SBA’s EIDL program offers long-term, low-interest assistance for small businesses and nonprofits in an effort to help provide economic support to alleviate temporary loss of revenue and can be used to cover payroll and inventory or pay debt or fund other expenses.

Loans are offered at a 3.75% interest rate for small businesses and 2.75% interest rate for nonprofit organizations, a 30-year maturity and an automatic deferment of one year before monthly payments begin, according to the SBA.

The SBA in June 2020 initially reopened its EIDL portal to eligible applicants experiencing economic impacts due to COVID-19. By the end of October 2020, the SBA reported that nationally, the EIDL program had added 3.6 million small business loans valued at $191 billion with an additional 5.7 million EIDL advances worth $20 billion.

Frequently asked questions about scams related to the EIDL program answered by Sarah Hodgens, the New York Credit Union Association’s director of compliance, can be accessed by clicking here.