The SBA has reopened EIDL applications to all business sectors. We’ll walk you through loan amounts, uses, and qualification requirements for businesses seeking support and as a reference for previous EIDL applicants.
An Economic Injury Disaster Loan (EIDL) can be used to support your business with working capital to cover day-to-day expenses.
Small businesses can receive up to $2 million in support during an economic crisis.
Primarily small businesses with fewer than 500 employees, as well as private nonprofit organizations, are eligible for EIDLs.
An Economic Injury Disaster Loan is a traditional SBA loan reserved for disaster relief. While generally known for strict requirements and long wait times before receiving funds, much of that has shifted in response to the CARES Act and coronavirus (COVID-19) pandemic.
The SBA is offering a loan advance, the Emergency Economic Injury Grant (EEIG), of up to $10,000 for businesses that applied.
These loans offer support for small businesses and help them stay operational during disaster-induced hardship. Use these funds to cover necessary day-to-day expenses your business would have successfully covered before coronavirus or other disasters impacted your finances. Examples include:
Loan amounts for this disaster relief loan cap at $2 million. However, there are several other important details you should know.
There are other specific requirements for EIDLs. These requirements also apply to businesses that had previously applied for an EIDL due to COVID-19.
Those requirements are that you:
The SBA requires you to prove your business has suffered as a direct result of coronavirus. If your business was experiencing financial hardship before the pandemic, you likely won’t qualify.
You can apply for an EIDL and the advance on the SBA website.
– James H.
Mar 30, 2020