SBA Economic Injury Disaster Loans: What you should know
Updated: Apr 16, 2020
4/16/20 Notice: Lapse in Appropriations
SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.
Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
What's an Economic Injury Disaster Loan (EIDL)?
The SBA EIDL program can provide low-interest loans of up to $2M to businesses and private non-profits
EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills
The interest rate is 3.75% for small businesses without credit available elsewhere. The interest rate for non-profits is 2.75%.
EIDLs have long-term repayment options, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based on borrower's ability to repay
CARES Act EIDL Provisions
The CARES Act created a $10,000 forgivable loan advance for businesses within days of applying for the EIDL, at the rate of $1,000 per employee. The loan advance will not have to be repaid if funds are used for payroll, even if the Disaster Loan is ultimately not completed.
To be eligible for the $10,000 forgivable loan advance, businesses need to complete the new application that launched March 30 even if they have already competed one of the prior versions of the application or if the business has already been declined for a loan. If you wish to apply for the advance on your EIDL, please visit www.SBA.gov/Disaster to fill out a new, streamlined application.
How do I apply?
Online at SBA.gov/disaster
Still need help? Call the SBA's Disaster Customer Service Center at 800-659-2955 or email email@example.com. Individuals who are deaf or hard-of-hearing can call 800-877-8339.
To view the SBA's COVID-19 Guidance for Small Businesses, visit sba.gov/coronavirus.
Take GCP's COIVD-19 Impact Survey HERE
Please note, this article is provided for information purposes only. All information is subject to change. Businesses should consult with their attorneys for guidance.