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The COVID EIDL loan would allow business owners to borrow $2 million for recovery. But some worry about the commitment.

By David Ade and Natalie Grim

WASHINGTON (Gray DC) – Disaster loans are available for small business owners as the country faces the next chapter of the COVID-19 pandemic: the Delta variant.

โ€œYou can use these funds to invest in your business to get it onto recovery track,โ€ said Veronica Pugin, a senior advisor with the Small Business Administration.

Pugin said the COVID Economic Injury Disaster Loanโ€”or EIDL program will continue through the end of the year.

She said borrowers can apply to receive up to $2 million from the SBA to help cover pandemic-related expenses. The repayment period is 30 years.

โ€œThe repayment terms are much more generous than other expenses and financial demands that weโ€™re seeing businesses grappling with today,โ€ Pugin said.

The SBA has so far approved over 3.8 million loans totaling nearly $260 billion. But some small business owners are wary of the commitment of a loan.

Unlike the earlier Payment Protection Program loans that became grant money during the height of the pandemic, EIDL loans will have to be repaid. Frank Knapp, the co-chair of the nonpartisan group Small Business for Americaโ€™s Future said that could be more of a burden than aid to some businesses.

โ€œPeople are less likely to want to take out a loan,โ€ Knapp said. โ€œThey may want to just struggle to get by than to owe somebody money.โ€

Knapp said other government proposals: like the infrastructure package, and child care improvements, can better help address both the financial and labor needs of small businesses.

โ€œAll of these programs help put money on Main Street through the people, workers, through families,โ€ He said. โ€œAll of that is good for small business.โ€

But with Congress still debating the infrastructure package in the House, businesses will have to wait a little longer for that relief.

Small business owners can visit sba.gov for information about the EIDL loan and to fill out their application.

https://www.graydc.com/2021/09/24/small-business-owners-wary-accept-available-federal-covid-aid/?fbclid=IwAR1QGiJ9gELM3RpJyzCKkVMXgFi4F-aYPDvenNVs2WDLAKaOjF2mmfZ2oeA

https://www.wibw.com/2021/09/24/small-business-owners-wary-accept-available-federal-covid-aid/

https://www.uppermichiganssource.com/2021/09/24/small-business-owners-wary-accept-available-federal-covid-aid/

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