Economic Impact Disaster Loan
In response to the Coronavirus (COVID-19) pandemic, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for an Economic Injury Disaster Loan. The EIDL program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to COVID-19.
To meet financial obligations and operating expenses that could have been met had the disaster not occurred
3.75% for businesses (fixed)
2.75% for nonprofits (fixed)
No pre-payment penalty or fees
USE OF PROCEEDS
Working capital and normal operating expenses
Example: continuation of health care benefits, rent, utilities, fixed debt payments.
Required for loans over $25,000
SBA uses a general security agreement (UCC) designating business assets as collateral, such as machinery and equipment, furniture and fixtures, etc.
NO – EIDL Loan
YES – EIDL Advance*
*Advance funds have been fully allocated and are not currently available
Deferred one year; interest still accrues
Borrower may make payments if they choose to do so.
Set up online payments through Pay.gov OR mail payments to:
U.S. Small Business Administration
721 19th Street
Denver, CO 80202
Be sure to include EIDL loan number on mailed-in checks.
SBA is currently accepting new Economic Injury Disaster Loan (EIDL) applications from all qualified small businesses, including agricultural businesses, and private nonprofit organizations.
If you have already applied via the streamlined application portal, please do not resubmit your application.
Small business owners and qualified agricultural businesses in all U.S. states and territories are currently eligible to apply for a low-interest loan due to COVID-19.
Agricultural businesses with 500 or fewer employees are now eligible as a result of new authority granted by Congress in response to the COVID-19 pandemic.
Agricultural businesses include those businesses engaged in the production of food and fiber, ranching, and raising of livestock, aquaculture, and all other farming and agricultural related industries (as defined by section 18(b) of the Small Business Act (15 U.S.C. 647(b)).
COVID-19 EIDL Loan Application
Targeted EIDL Advance
COVID-19 Targeted EIDL Advance was signed into law on December 27, 2020, as part of the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act. The Targeted EIDL Advance provides businesses located in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency.
Advance funds of up to $10,000 will be available to applicants located in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding.
Applicants do not need to take any action at this time.
SBA will reach out to those who qualify.
SBA will first reach out to EIDL applications that already received a partial EIDL Advance (between $1,000 - $9,000). Applicants will be contacted directly by SBA via email in the coming weeks with instructions to determine eligibility and submit documentation.
All communications from SBA will be sent from an official government email with an @sba.gov ending. Please do not send sensitive information via email to any address that does not end in @sba.gov.
Applicants may qualify if they:
Are located in a low-income community. To help applicants determine if they are located in a low-income community as defined in section 45D(e) of the Internal Revenue Code, a mapping tool is available at https://sbaeidl.policymap.com/app. Note that the business address must be located in a low-income community in order to qualify so SBA encourages potential applicants to check the map to see if they meet the low-income community eligibility requirement before you apply; AND
Can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction.
Next, SBA will reach out to those who applied for EIDL assistance on or before December 27, 2020, but did not receive an EIDL Advance due to lack of program funding.
These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation. Applicants may qualify for a Targeted EIDL Advance if they meet the above criteria (low-income location and reduction in revenue)
Have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.
All applicants may be asked to provide an IRS Form 4506-T to allow SBA to request tax return information on the applicant's behalf.
Please do not submit duplicate COVID-19 EIDL applications. Only prior applicants will be considered for the Targeted EIDL Advance.
SBA will reach out to you if you qualify!
Mapping tool: https://sbaeidl.policymap.com/app
EIDL Advance (NO LONGER AVAILABLE)
EIDL Advance funds were originally calculated based on the number of employees indicated on an applicant's COVID-19 EIDL application: $1,000/employee, up to a maximum of $10,000.
EIDL Advance does not have to be repaid.
Recipients did not have to be approved for an EIDL loan to receive the EIDL Advance.
The amount of the loan Advance was deducted from total loan eligibility.
Businesses who received an EIDL Advance in addition to the Paycheck Protection Program (PPP) loan will no longer have the amount of the EIDL Advance subtracted from the forgiveness amount of their PPP loan.
If you already applied for PPP loan forgiveness and had the amount of your EIDL Advance subtracted from the forgiveness amount, updated guidance will be published soon.
EIDL loan applications are still being processed, even though applications for the Advance are no longer available.
Please do not submit additional applications on the COVID-19 EIDL portal.