SBA Economic Injury Disaster Loans and Loan Advance

SBA Economic Injury Disaster Loans and Loan Advance

Posted on April 02, 2020 at 09:39 AM. Written by Entrepreneur Fund

In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000. The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

Summary of Program: Low interest, long term Economic Injury Disaster Loans for up to $2 million: The first payment is deferred for 12 months. The application has been simplified and can be completed 100% online through our improved web portal at www.sba.gov/disaster. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75% and the loans can be extended over 30 years. 
  • Why this might make sense for you: The SBA EIDL can be used to maintain payroll, provide paid sick leave, meet increased costs, make rent or mortgage payments, as well as repay unmet expenses and obligations.

  • SBA EIDL Grants - Businesses applying for an EIDL loan can request up to $10,000 be disbursed immediately. The amount need not be repaid, regardless of the loan decision. The form to apply for an advance is part of the new EIDL applicationIf you have already applied for an EIDL Loan and wish to apply for the advance, please fill out the new, streamlined application.
  • Why this might make sense to you: This advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.

The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

Economic Injury Disaster Loans are also available to residents in declared disaster areas. To view the full list of disaster declarations, click here.

To apply for a disaster loan unrelated to COVID-19, click here.

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