COVID-19 Economic Injury Disaster Loan

This loan provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue.

Loan details

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In response to COVID-19, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for the COVID-19 Economic Injury Disaster Loan (EIDL).

FAQ Regarding COVID-19 EIDL

PURPOSE	To meet financial obligations and operating expenses that could have been met had the disaster not occurred
LOAN AMOUNT	For loans approved starting the week of April 6, 2021: 24-months of economic injury with a maximum loan amount of $500,000. For loans approved prior to the week of April 6, 2021, see loan increases.
TERMS	3.75% for businesses (fixed) 2.75% for nonprofits (fixed) 30 years 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.
COLLATERAL REQUIREMENTS	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.
FORGIVABLE	NO – EIDL Loan YES – EIDL Advance* *Advance funds have been fully allocated and are not currently available
MATURITY	30 years
PAYMENTS	Borrowers 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 COVID-19 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.

Loan eligibility

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 pandemic.

Agricultural businesses include those businesses engaged in the production of food and fiber, ranching, 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)).

 

Targeted EIDL Advance

The 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 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 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.

SBA is reaching out to those who qualify.

SBA first reached out to EIDL applicants who already received a partial EIDL Advance (between $1,000 – $9,000). Applicants are being contacted directly by SBA via email with instructions to determine eligibility and submit documentation. 

All communication from SBA will be sent from an official government email account ending with @sba.gov. Please do not send sensitive information via email to any address that does not end with @sba.gov.

Applicants may qualify if they:

• Are in a low-income community. To help applicants determine if they are 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. The business address must be in a low-income community to qualify so SBA encourages potential applicants to check the map to see if they meet the low-income community eligibility requirement before they apply; and
• Can demonstrate more than 30% reduction in revenue during an eight-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 is reaching 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 low-income location and reduction-in-revenue criteria, and:

• 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 if you qualify.

 

Source: SBA