WASHINGTON – The U.S. Small Business Administration reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19.
In early May, SBA placed new restrictions on Economic Injury Disaster Loans (EIDL) as demand skyrocketed and funding evaporated. The changes stopped many real estate pros from applying for aid because it not only capped the amount available, but SBA limited it to agricultural businesses.
On Tuesday, however, SBA sent out an email saying the program was expanding again to “further meet the needs of U.S. small businesses and non-profits.”
“With the reopening of the EIDL assistance and EIDL Advance application portal to all new applicants, additional small businesses and non-profits will be able to receive these long-term, low interest loans and emergency grants – reducing the economic impacts for their businesses, employees and communities they support,” says SBA Administrator Jovita Carranza.
Carranza says SBA has improved the application and closing process with new technology and automated tools.
EIDL offers long-term, low interest assistance for a small business or non-profit. The loan can be used to cover payroll and inventory, pay debt or fund other expenses. EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses experiencing temporary difficulties – and the emergency grants don’t have to be repaid.
SBA’s COVID-19 Economic Injury Disaster Loan (EIDL) and EIDL Advance
- The low-interest federal disaster loans offer working capital to small businesses and non-profit organizations suffering substantial economic injury as a result of COVID-19. They’re available in all U.S. states, Washington D.C., and territories.
- The loans may be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact – and that are not already covered by a Paycheck Protection Program loan. The interest rate is 3.75% for small businesses and 2.75% for non-profits.
- Loans generally have long repayment terms – up to a maximum of 30 years – and the first payment is deferred for one year.
- Small businesses and non-profits may request, as part of their loan application, an EIDL Advance of up to $10,000. The EIDL Advance provides emergency economic relief to businesses that are currently experiencing a temporary loss of revenue. It does not have to be repaid, and small businesses may receive an advance even if they aren’t approved for a loan.
- The SBA will also help small businesses and non-profits access the federal forgivable loan program, the Paycheck Protection Program, which is currently accepting applications until June 30, 2020.
For additional information about SBA’s response to the COVID-19 pandemic, visit its website.
By Kerry Smith
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