On June 15th, the SBA reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic distress due to the COVID-19 pandemic.
The EIDL Loan and EIDL Advance is a program separate from the Paycheck Protection Program and is administered directly through the SBA. The EIDL offers more flexible use of proceeds, longer repayment terms, and different eligibility requirements. Certain business types not eligible for PPP may be eligible for disaster assistance under SBA EIDL Loan.
- 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, the EIDL offers loans with longer 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.
For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.