Economic Injury Disaster Loan (EIDL) Advance: Update
On July 11th, the U.S. Small Business Administration (SBA) announced that it would discontinue making Economic Injury Disaster Loan (EIDL) Advances to new applicants, having allocated the full $20 billion appropriated by Congress. EIDL advances had provided $1,000 per employee up to a maximum of $10,000, and recipients did not have to be approved for a loan to receive the Advance.
While the Advance is no longer available, the SBA is still processing EIDL loan applications. As a reminder, EIDL provides 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.