COVID-19 had an effect on you? Discover how the Small Business Administration’s Economic Injury Disaster Loan may help you keep your firm functioning.
What you’ll discover:
components of the Economic Injury Disaster Loan program.
EIDL eligibility
How to Use
Table of Contents
Economic Injuries Disaster Loan Program Components
A loan advance of up to $10,000 is available.
Small company owners may qualify for a $10,000 Economic Injury Disaster Loan (EIDL). The advance is intended to give economic help to firms suffering from a temporary loss of income as a result of the health crisis. The funds will be made accessible immediately and will not have to be returned. The advance might be used to retain personnel on the payroll, cover sick leave, cover higher production expenses due to supply chain interruptions, or satisfy other business responsibilities (including debts, rent, and mortgage payments).
Any small firm in the United States is eligible to apply for the advance. Before you may seek the advance, you must first apply for an EIDL.
Bridging loans of up to $25,000 are available.
Small company owners who already have an SBA Express Lender connection may utilize the Express Bridge Loan Pilot Program to get up to $25,000 with less paperwork. These loans are intended to assist small enterprises in swiftly overcoming the temporary loss of income caused by the health crisis. The Fast Bridge Loan may be used to bridge the gap while you wait for an EIDL decision (and payout). Express Bridge Loans may be repaid in whole or in part using EIDL revenues.
Catastrophe Loan for Economic Injuries: up to $2,000,000
EIDLs are low-interest loans of up to $2 million that may be postponed at the SBA’s discretion to pay for expenditures that would have been paid had the catastrophe not happened, such as payroll and other operational expenses. You may apply for a COVID-19 catastrophe loan online.
Eligibility for EIDL
EIDLs are available to small enterprises with 500 or less workers that fit into one of the following categories:
Whether with or without staff, sole proprietorships
Contractors who work on their own
Employee-owned enterprises and cooperatives
Small tribal enterprises
Small company concerns and small agricultural cooperatives that fulfill the appropriate size threshold for SBA are also eligible, as are most private non-profits of any size (you will need your 6-digit NAICS Code and your 3-year average annual sales).
How to Use
SBA lenders are now offering EIDLs. When seeking for SBA help, you may apply for an EIDL online or by contacting your local SBA District Office. You may also use the SBA’s website to locate an SBA lender near you.
