Just weeks into 2022, many small businesses are still struggling to overcome the ongoing challenges posed by the pandemic. A number of loan programs were put into place to help support business owners grappling with everything they’ve had to face as a result of COVID-19’s consistent spread, but the two most widely used—the Paycheck Protection Program and the U.S. Small Business Administration’s (SBA’s) Economic Injury Disaster Loan (EIDL) Program for businesses impacted by COVID-19—are no longer available.
The SBA stopped accepting applications for COVID-19 EIDLs after December 31, 2021. Since March 20, 2020, when the entire U.S. and its territories were declared a disaster area, countless eligible businesses took advantage of these low interest rate loans, which have a repayment period of 30 years, as well as special grants created by Congress to help businesses through the pandemic. The applications of any businesses that applied before the end-of-the-year deadline will still be processed, so some COVID-19-related EIDLs will be approved in 2022.
What Now?
The EIDL program is still available, just not for COVID-related reasons. If your business is located in a federally declared disaster area (whether due to fires, hurricanes, tornados, floods or other disasters) and suffers economic injury as a result, you can apply for a low-interest EIDL directly through the SBA at SBA.gov.
Small business owners who are still struggling as a result of the pandemic will have to look strategically elsewhere for other alternative funding relief options. Options may include:
- Private small business grants
- State and local government grants and relief programs
- Traditional SBA loans
- Other small business loans
Why Clear Skies Capital?
For many years, we have supported businesses that need alternative funding solutions—giving them that sought-after “yes” after many have been turned down by traditional lenders like banks. We are here when the economy is strong, and we are here when the economy is uncertain, like it is now. Our commitment is to do all we can to help businesses survive short-term financial setbacks—and we’ve been the difference between coming out stronger on “the other side” and having to close up shop for countless clients.
The Takeaway
With options like COVID-19 EIDLs no longer on the table, you are not out of luck if you need help to make it through the ongoing challenges brought about by the pandemic. There are options available to you, even if you don’t have great credit, from public and private sources.
If you have any questions about where you might find funding, give us a call at 800-230-9822 so we can help you determine the best option for your business—which may or may not be us!