Everything you Need to Know about COVID-19 Economic Injury Disaster Loans
In response to the coronavirus (Covid-19) pandemic, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for an Economic Injury Disaster Loan (EIDL).
The EIDL program, administered by the U.S. Small Business Administration (SBA), is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to Covid-19. An EIDL can help you meet necessary financial obligations that your business or private, the non-profit organization could have met had the pandemic not occurred.
Who is eligible to apply for the Covid-19 EIDL?
According to the SBA, in order to apply for coronavirus-related EIDL, applicants must be physically located in the U.S. or designated territory and suffered working capital losses due to the coronavirus pandemic. Eligible applicants include:
- Businesses with 500 or fewer employees or defined as small per SBA’s Size Standards
- Cooperatives with 500 or fewer employees
- Agricultural enterprises with 500 or fewer employees
- Most private nonprofits
- Faith-based organizations
- Sole proprietorships and independent contractors
How do I apply for the Covid-19 EIDL Loan?
To apply, visit the SBA’s COVID-19 Economic Injury Disaster Loan Application page and complete all requested information. For help completing your application or to check the status of your application, you can call the SBA’s Customer Service Center at 1-800-659-2955.
You may still apply for the Covid-19 EIDL if you have already received a Paycheck Protection Program loan, however, funds from both loans cannot be used for the same purpose. Each business may only apply for a Covid-19 EIDL once.
Fast Facts about the Covid-19 EIDL
If you are applying for a loan over $25,000 in value, collateral is required for a business to obtain that loan. The SBA uses a general security agreement (UCC) designating business assets as collateral, such as machinery and equipment. EIDL loans are not forgivable and have a maturity rate of 30 years. Payments are deferred one year, but borrowers may make payments if they chose to do so. Interest will still accrue.
The loan terms for EIDL are as follows:
- 3.75% for businesses (fixed)
- 2.75% for nonprofits (fixed)
- 30 years
- No pre-payment penalty or fees
For more information, visit the SBA’s Economic Injury Disaster Loan page. Also be sure to check out Covid-19 EIDL Frequently Asked Questions page for answers to specific questions. For additional resources on Loan programs, visit the Benefits.gov Loans and Disaster Relief categories or browse our News page. Be sure to take the Benefits Finder questionnaire to find other benefit programs that may be of assistance to you.