SBA Reopens Economic Injury Disaster Loan and EIDL Advance Application Portal
Tuesday, June 30th, 2020 -- 9:40 AM
-The SBA reopened the SBA Economic Injury Disaster Loan and EIDL Advance Application Portal to All Eligible Small Businesses.The SBA is offering low interest federal disaster loans for working capital to small businesses and non-profit organizations that are suffering substantial economic injury as a result of COVID-19 in all U.S. states, Washington D.C., and territories. These loans may be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. To keep payments affordable for small businesses, SBA offers loans with long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year. In addition, small businesses and non-profits may request, as part of their loan application, an EIDL Advance of up to $10,000. The EIDL Advance is designed to provide emergency economic relief to businesses that are currently experiencing a temporary loss of revenue. This advance will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan. The grant is determined based on $1,000 per eligible employee of the business. You can count the business owner as an employee too.
If you have not applied for the EIDL Loan in the past they would encourage you to consider it. You can still apply for EIDL even if you got a PPP loan. Remember though if you get an EIDL Grant, not EIDL Loan, your forgivable portion of the PPP loan will be reduced by the amount of your EIDL grant received up to $10,000. Here is a link to the SBA EIDL Grant and Loan Application: https://www.sba.gov/page/disaster-loan-applications. The SBA is still offering the Paycheck Protection Program, loans through banks and is currently accepting applications until June 30, 2020. For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.
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