As of 2025, you cannot apply for a new EIDL or PPP loan. The SBA stopped accepting new applications for the COVID-19 Economic Injury Disaster Loan (EIDL) program on January 1, 2022, and the Paycheck Protection Program (PPP) is also closed to new applications.
Yes, you can have 2 SBA loans at the same time! The Small Business Administration (SBA) doesn't limit you to a single loan. However, qualifying for a second loan depends on a few factors, such as your ability to manage the existing debt and meet the requirements for the new loan.
The SBA Hardship Accommodation (for EIDL) was a temporary payment-relief plan that reduced monthly payments for a limited period, allowing interest to continue accruing; it ended on March 19, 2025.
Personal and Business Credit Issues
SBA lenders expect strong personal and business credit. You may be disqualified if: Your personal credit score is very low (commonly below 650) You have recent bankruptcies, foreclosures, or unpaid tax liens.
Yes, a new LLC can get an SBA loan, but it's challenging as lenders often prefer established businesses (2+ years), requiring strong personal credit, a solid business plan, and sometimes collateral, though SBA microloans and certain 7(a) programs offer more flexibility for startups, focusing on the owner's creditworthiness and feasibility of the business idea.
There's no single minimum for all SBA loans, but generally, expect to need a personal credit score of 650 or higher for major 7(a) loans, while SBA Microloans might accept scores around 620, and some lenders may look for scores in the 600s for smaller 7(a)s if financials are strong. The SBA also uses the FICO SBSS score, with a minimum of 165 for 7(a) Small Loans, but individual lenders set their specific credit requirements, so strong business financials and cash flow can sometimes offset a slightly lower score.
Yes, PPP loans under $150,000 can still be audited by the SBA, though they benefit from a "safe harbor" for good faith necessity certification, meaning they aren't automatically audited like loans over $2 million. The SBA reserves the right to review any loan, and while documentation retention is shorter (3-4 years for smaller loans vs. 6 years for larger ones), borrowers must still keep records in case of a specific review for fraud or misuse.
What: The EIDL advance grant is a form of small business relief providing $10,000 dollars in grants, i.e., completely free and non-repayable money, to select small businesses. The grant program was part of the initial CARES Act in 2020, but funds were exhausted within weeks.
If you can't pay back your EIDL loan, the SBA can seize collateral, garnish wages (up to 15%), offset federal payments (like tax refunds), damage your credit, and take legal action, potentially leading to lawsuits and loss of business or personal assets, with the debt transferred to the Treasury Department for collection, which has significant enforcement powers.
Economic hardship refers to the difficulties faced by individuals or families due to income loss, unemployment, job instability, and economic insecurity.
I've been speaking with a number of lenders and recently learned about the SBA's rule that owners with 20% ownership or greater must provide a personal guaranty on the loan.
What You Need to Qualify for $200k Business Loans
Newly-Formed Business Entities, New Debt Obligations, and Other Atypical Business Activities. Other red flags for PPP loan fraud include atypical business activities such as forming new business entities and entering into new debt obligations.
According to pandemic oversight data, there are currently more than 700 active investigations into PPP and EIDL loan fraud.
These include term loans, SBA loans, lines of credit, merchant cash advances, invoice factoring and invoice financing as well as personal loans and business credit cards. As always, compare your options to make sure you're getting the best deal.
Mistake #1: Rushing to File a Loan Forgiveness Application
Why rush? We understand that people are anxious. And there may be some – very few – legitimate reasons for wanting to submit the application sooner rather than later. But generally speaking, we think rushing is a big mistake.
Thereafter, in consultation with the Treasury Department, the SBA issued guidance explicitly stating that it would review all PPP loans in excess of $2 million following a lender's submission of a borrower's loan forgiveness application. any time in [its] discretion.” As such, all PPP borrowers are subject to audit.
Loan eligibility
To obtain a loan via COVID-19 EIDL, small business owners must have met the eligibility requirements. Additionally, below were the credit score requirements: $500,000 or under: 570. Greater than $500,000: 625.