The EIDL is a loan directly from the SBA that offers a low-interest, fixed rate, long-term loan that is available to businesses that were impacted by the pandemic. Unlike the PPP, the EIDL must be repaid and cannot be forgiven.

Below are the updates to the EIDL program:

  • Maximum loan amount increased from $500,000 to $2 million

o There is an exclusivity period; the SBA will not start approving loans greater than $500,000 until October 8, 2021

o From September 8, 2021 to October 8, 2021, the SBA will be approving loan applications for amounts that are less than $500,000

  • Increased use of funds flexibility

o In addition to the current use of funds, the EIDL funds can now also be applied to payment and prepayment of commercial debt and regularly scheduled payments of federal debt

  • The SBA will automatically defer loan repayment for 24 months from loan origination for all loans
  • Simplified affiliation requirements for all industries

o An affiliate is a business that you control or in which you have 50% or more ownership

  • There is a $10 million limit on the maximum aggregate EIDL loans to a single corporate group

o Entities are part of a single corporate group if they are majority owned, directly or indirectly, by a common parent

How to Apply

If you are a new applicant, there is a two-step application process:

  1. Visit and complete the application on the portal. If you are approved, you can receive up to $500,000. The decision timeline is 3 weeks
  2. Once you have been approved, log into your SBA account on the portal (Do not apply for another loan), verify additional eligibility, and submit a loan modification to receive up to $2 million. The decision timeline for this portion is 6 weeks

If you are a returning applicant and have already received EIDL funds:

  1. Log into your SBA account on the portal and verify additional eligibility (Do not apply for another loan)
  2. Submit a loan modification request to receive up to $2 million
  3. Receive a decision after October 8, 2021, or within 6 weeks of application submission


Required Documents

New applicants or loans less than $500,000:

  • Federal Income Taxes
  • IRS Form 4506-T

Loan modification requests over $500,000

  • ODA Form P-022 – Standard Resolution
  • SBA Form 2202 – Schedule of Liabilities
  • List of Real Estate Owned
  • SBA Form 413 – Personal Financial Statement


If you have any questions about the altered EIDL program, contact a member of the KROST SBA team, or your account manager, or alternatively, fill out this form: