The U.S. Small Business Administration (SBA) reopened the Economic Injury Disaster Loan (EIDL) program to all eligible applicants, extending loans of up to $150,000 to help small businesses and private non-profit organizations overcome COVID-19 related loss of revenue. EIDL loans are calculated as up to six months of working capital, and offered to businesses in operation for at least a year prior to the disaster. 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.
Through EIDL, the SBA also offers an advance of $1,000 per employee up to a $10,000 maximum to all applicants that successfully submit an EIDL application. And as a reminder, applicants will not be required to pay back the advance even if they are subsequently denied for an EIDL loan or decline the EIDL loan offer.
We encourage business owners to calculate their gross revenue and cost of goods sold for the twelve months prior to the disaster, and contact a Pace SBDC Business Advisor at email@example.com to discuss eligibility. You can also check out our website’s EIDL program page for more detail and a step-by-step view of the application.