Economic Injury Disaster Loan
Below you can access information about federal, state, city and private resources in regards to coronavirus (COVID-19).
The U.S. Small Business Administration’s (SBA) Economic Injury Disaster Loans (EIDL) offer up to $150,000 in working capital to help small businesses and private non-profit organizations overcome COVID-19 related loss of revenue. Loans have an interest rate of 3.75% for small businesses and 2.75% for non-profits, and a maximum term of 30 years. Additionally, the first payment is deferred for one year.
Check out the SBA's EIDL Frequently Asked Questions document for further detail.
The loans may be used to pay debts, payroll, inventory, accounts payable, and other ordinary and necessary expenses of the business that are not already covered by a Paycheck Protection Program loan. Business expansion/relocation, replacing lost profit or sales, refinancing long term debt, or acquiring fixed assets are not eligible uses of proceeds. The application deadline is December 21, 2020.
On July 11th, the SBA announced the conclusion of the Economic Injury Disaster Loan (EIDL) Advance program, which provided U.S. small businesses, non-profits, and agricultural businesses a total of $20 billion in emergency funding. The EIDL Advance provided $1,000 per employee up to a maximum of $10,000. Recipients did not have to be approved for a loan to receive the Advance. Having allocated the full $20 billion that was appropriated by Congress, SBA will discontinue making EIDL Advances to new applicants. EIDL loan applications will still be processed even though the Advance is no longer available.
Check out the NYSBDC application guide for a step-by-step view of the screens and information that will be asked through the SBA’s disaster loan portal. Keep in mind that EIDL loans are processed directly by the SBA, and you may be asked by an SBA loan officer to complete additional forms. Contact the SBA directly at email@example.com or (800)-659‐2955.