A Closer Look at Economic Injury Disaster Loans (EIDL)
The Coronavirus Aid, Relief, and Economic Security (CARES) Act expands the Small Business Administration’s long-standing Economic Injury Disaster Loan Program (EIDL). The EIDL program was created to assist businesses, renters, and homeowners located in regions affected by declared disasters.
Many people are applying for these loans and the response can be overwhelming to the websites so please be patient when applying. Consider trying to apply at non-peak times.
You can check on status of EIDL application status at 1-800-659-2955 but please be patient. Do not resubmit application, this only worsens the issue. You should be receive an acknowledgment once you submit application.
Processing time is being currently being quoted at 18-21 business days; wait times are much shorter for the Paycheck Protection Program (PPP).
Who is ELIGIBLE?
In general, all of the following entities that have suffered substantial economic injury caused by a disaster provided they were in existence on January 31, 2020:
Businesses with fewer than 500 employees
Cooperatives, ESOPs, and tribal small businesses with fewer than 500 employees
Most private nonprofits
What are the
The maximum EIDL is a $2 million working capital loan at a rate of 3.75% for businesses and 2.75% for non- profits with up to a 30-year term
Payments on Coronavirus EIDL loans are deferred for one year
Up to $200,000 can be approved without a personal guarantee
Approval can be based on a credit score and no first-year tax returns are required
Borrowers do not have to prove they could not get credit elsewhere
No collateral is required for loans of $25,000 or less. For loans of more than $25,000, general security interest in business assets will be used for collateral instead of real estate
The borrowers must allow the SBA to review its tax records
How can I access an
EMERGENCY $10,000 GRANT?
Eligible applicants for an EIDL can receive a $10,000 emergency grant within three days of application (through Dec. 31)
There is no obligation to repay the grant. To receive the $10,000 emergency grant, it is not necessary to have an approved EIDL loan. However, if you are able to secure a PPP loan, the $10,000 grant will be subtracted from the forgiveness amount
NOTE: The Paycheck Protection Program (PPP) created by the CARES Act prohibits borrowers from taking out two loans for the same purpose. For more information on PPP loans, visit uschamber.com/sbloans