|Summary||Economic Injury Disaster Loan is a low-interest, fixed-rate loan, with extended terms, purposed to offset a lack of working capital for small businesses. EIDLs can be used to pay for operational costs such as rent, utilities, and payroll. Applicants should receive a grant up to $10,000 with an allocation of $1,000 per employee as of January 31.|
|Who should consider applying?||Businesses with need for quick cash to support operations.
Businesses that have long-term working capital needs other than payroll, rent, interest, and utilities that exceed the funds available through the Paycheck Protection Program.
|Highlights||– Up to $10,000, with an allocation of $1,000 per employee as of January 31.
– Loan amounts up to $2 million
– First year of payments are deferred
– Loan terms up to 30 years 3.75% interest
|Where do I apply?||Apply directly through SBA’s website at covid19relief.sba.gov|
|What forms and information will I need to apply?||1. Application (SBA Form 5 or Form 5C for Sole Proprietorships)
Other information that might be requested by SBA and helpful to have on hand:
1. IRS 4506T for applicant business and all 20%+ owners
2. Most recent copy of business tax return
3. Schedule of Liabilities (SBA Form 2202)
4. Personal tax returns for all principals
5. Business year-end financial statements Current P&L (within 90 days)
6. Monthly Sales figures (SBA Form 1368)
Are businesses and private non-profits in my state eligible for an EIDL related to COVID-19?
What is an EIDL and what is it used for?
Who is eligible for an EIDL?
– Sole proprietorships, with or without employees
– Independent contractors
– Cooperatives and employee owned businesses
– Tribal small businesses
Small business concerns and small agricultural cooperatives that meet the applicable size standard for SBA are also eligible, as well as most private non-profits of any size. See below for more info on size standards.
My private non-profit is not a 501(c)(3). Is it still eligible for an EIDL and a grant?
Who is eligible for an Emergency Economic Injury GRANT?
Can I use an EIDL to make payments on my existing SBA loans or on other long-term debt obligations?
Is collateral required?
Do EIDLs have prepayment penalties?
Once I get approved, how are the funds disbursed?
If I am applying for or have received an Economic Injury Disaster Loan, is my small business eligible to participate in the Paycheck Protection Program?
What if I have more questions?