SBA EIDL Funds Back Open
As a reminder, the Small Business Administration ran out of Economic Injury Disaster Loan (EIDL) funding on April 15, 2020 and reopened the program May 4, 2020 to Agricultural and Farming Businesses at that time.
Starting yesterday, June 15, 2020 all small businesses may apply again for EIDL funding.
Final note, up to $10,000 will still be available as an advance, which a business does not have to repay. A business receives $1,000 per employee, up to $10,000 as the advance. You can receive an advance, if you are not approved for a loan.
To apply, click HERE
For more information, click HERE
SBA’s COVID-19 Economic Injury Disaster Loan (EIDL) and EIDL Advance
The SBA is offering low interest federal disaster loans for working capital to small businesses and non-profit organizations that are suffering substantial economic injury as a result of COVID-19 in all U.S. states, Washington D.C., and territories.
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, SBA offers loans with long 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.
SBA’s EIDL and EIDL Advance are just one piece of the expanded focus of the federal government’s coordinated response.
The SBA is also assisting small businesses and non-profits with access to the federal forgivable loan program, the Paycheck Protection Program, which is currently accepting applications until June 30, 2020.