Economic Injury Disaster Loan (EIDL) Program for COVID-19
Small business owners in all U.S. states, Washington D.C., and territories may be eligible to apply for an Economic Injury Disaster Loan (EIDL) of up to $2,000,000 because of the COVID-19 disaster. The loan is made by the Small Business Administration directly and a $10,000 advance on the loan can be requested as well. This loan advance will not have to be repaid. You can only apply for this loan directly through the U.S. Small Business Administration website.
- [Important update: as of April 16, 2020, the U.S. Small Business Administration is only accepting new EIDL applications from agricultural businesses due to funding limitations.]
- Maximum amount of $2,000,000 [Important update: as of April 15, 2020: Many borrowers are reporting that they are only being approved for loan amounts far below their requested amount]
- Proceeds must be used for working capital needs such as fixed debt and payroll
- Interest rate of 3.75% for businesses and 2.75% for nonprofits
- Loan term of up to 30 years, depending on the needs of the borrower
- Automatic one-year deferment on repayment so the first payment is not due for a full year
Economic Injury Disaster Loan Emergency Advance
All businesses applying for an EIDL loan are eligible to also apply for a fast $10,000 advance on their loan. This advance does not have to be repaid, even if the applicant is not actually approved for the EIDL loan. Funds will be made available shortly following a successful application.
- Applicant must be adversely impacted by COVID-19
- Must be a small business with 500 or fewer employees. Businesses in certain heavily-impacted industries may be eligible as well even if they have more than 500 employees. Private non-profit organization or 501(c)(19) veterans organizations that meet the employee number requirement are also eligible.
- Sole proprietorships, independent contractors, self-employed persons, private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19. This program is for any small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.
- Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries.
- The Economic Injury Disaster Loan advance funds will be made available within days of a successful application, and this loan advance will not have to be repaid.
How Do I Apply for an EIDL?
Due to the increased need for the EIDL, the U.S. Small Business Administration has released an online application to streamline the process.
- SBA.gov Disaster Assistance page: https://www.sba.gov/funding-programs/disaster-assistance
- General Relief Options: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
- Information about EIDL: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
- Official Application: https://covid19relief.sba.gov/#/