TIP: If you’re on the fence about whether to obtain an EIDL during these uncertain times, the time to apply is now. There is no obligation for a business to take the loan if one is offered, but starting the application process will secure your place in the queue.
How to Apply for an SBA Economic Injury Disaster Loan (EIDL)
MARCH 27, 2020 SC&H GROUP
Updated on 3/27/2020 at 8:40am EST
In light of the economic turmoil brought on by the COVID-19 global pandemic, the U.S. Small Business Administration has been thrust into the national spotlight to provide assistance to thousands of small businesses looking to apply for disaster assistance loans for Coronavirus-related economic disruptions.
The SBA is providing low-interest working capital loans of up to $2 million to almost all U.S. small businesses (must have fewer than 500 employees) and private non-profit organizations to pay fixed debts, payroll, accounts payable, and other expenses. These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits — the loan repayment terms vary by applicant, up to a maximum of 30 years. There are a few exceptions:
- Agricultural Enterprises
- Religious Organizations
- Charitable Organizations
- Gambling Concerns
- Casinos and Racetracks
Additionally, due to increased volume the time to receive funds may take longer than normal and there are no fees to apply. Applicants are permitted to have an existing EIDL and still qualify for this disaster relief, but the loans cannot be consolidated (ie. If a Howard County small business has an EIDL due to the flooding, they are still eligible to obtain another EIDL for the COVID-19 disaster.) In the event their request is denied, the applicant will be given up to six months to provide new information and submit a written request for consideration.