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 announced that it is increasing the maximum amount small businesses and non-profit organizations can borrow through the Economic Injury Disaster Loans (EIDL) program. Starting the week of April 6, 2021, the SBA raised the loan limit for the COVID-19 EIDL program to 24-months of economic injury with a maximum loan amount of $500,000.
Businesses that received a loan subject to the limits in effect prior to April 7 can now request an increase under the new limits. SBA is sending a direct email to borrowers to provide instructions on how to submit a loan increase request. Any new loan applications and any loans already in process when the new loan limits went into effect will automatically be considered under the new limits covering 24 months of economic injury up to a maximum of $500,000. Collateral will continue to be required for loans over $25,000.
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 SBA announced an extended EIDL loan deferral period - all EIDL loans made in calendar year 2020 will have a first payment due date extended to 24-months from the date of the note, and EIDL loans made in calendar year 2021 will have a first payment due date extended to 18-months from the date of the note.
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 was extended until December 31, 2021.
Check out the SBA's EIDL Frequently Asked Questions document for further detail.
If you are ready to apply, the NYSBDC application guide offers 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.
The Coronavirus Response and Relief Supplemental Appropriations Act provided $20 billion to fund EIDL Advance grant distributions of $10,000 to eligible small businesses and nonprofits in low-income communities that did not previously secure these allocations, or the difference between what an entity received under the CARES Act and $10,000 if they received some prior EIDL advance funding. As a reminder, recipients do not have to be approved for a loan to receive the Advance.
The Targeted EIDL Advance program has reopened for businesses that have 300 or fewer employees that had previously applied to the SBA for EIDL assistance before December 27, 2020, are located in federally identified low-income communities, and can demonstrate a reduction in revenue of more than 30% during an 8-week period beginning on March 2, 2020 or later. Click here and read our blog post for more detail.
Effective immediately, the SBA has indicated applicants can email a request for reevaluation of a Targeted EIDL Advance application that was declined to TargetedAdvanceReevaluation@sba.gov. Be sure to use the subject line “Reevaluation Request for [insert your 10-digit application number],” and in the body of the email, include 1) identifying information for the application such as application number, business name, business address, business owner name(s) and phone number; and 2) an explanation and any documentation that addresses the reason for the decline.