Economic Injury Disaster Loan (EIDL)
Notice: At this time, only agricultural business applications will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. For agricultural businesses that submitted an EIDL application through the streamlined application portal prior to the legislative change, SBA will process these applications without the need for re-applying. Eligible agricultural businesses may apply for the Loan Advance here.
Lapse in Appropriations- SBA is unable to accept new applications at this time for the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act expands the Small Business Administration’s long-standing Economic Injury Disaster Loan Program (EIDL). The EIDL program was created to assist businesses, renters, and homeowners located in regions affected by declared disasters.
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Apply online at www.SBA.gov/disaster
Who is ELIGIBLE?
- In general, all of the following entities that have suffered substantial economic injury caused by a disaster provided they were in existence on January 31, 2020:
- Businesses with fewer than 500 employees
- Cooperatives, ESOPs, and tribal small businesses with fewer than 500 employees
- Sole proprietors
- Independent contractors
- Most private nonprofits - except 501 (c)6
What are the LOAN PARAMETERS?
- The maximum EIDL is a $2 million working capital loan at a rate of 3.75% for businesses and 2.75% for non-profits with up to a 30-year term
- Payments on Coronavirus EIDL loans are deferred for one year
- Up to $200,000 can be approved without a personal guarantee
- Approval can be based on a credit score and no first-year tax returns are required
- Borrowers do not have to prove they could not get credit elsewhere
- No collateral is required for loans of $25,000 or less. For loans of more than $25,000, general security interest in business assets will be used for collateral instead of real estate
- The borrowers must allow the SBA to review its tax records
How can I access an EMERGENCY $10,000 GRANT?
- Eligible applicants for an EIDL can receive a $10,000 emergency grant within three days of application (through Dec. 31, 2020)
- There is no obligation to repay the grant. To receive the $10,000 emergency grant, it is not necessary to have an approved EIDL loan. However, if you are able to secure a PPP loan, the $10,000 grant will be subtracted from the forgiveness amount
NOTE: The Paycheck Protection Program (PPP) created by the CARES Act prohibits borrowers from taking out two loans for the same purpose. For more information on PPP loans, visit uschamber.com/sbloans
Where can I get assistance filling out the application or with general information?
before you apply we suggest watching this ASBTDC video and slides to help you in filling out the application. We suggest that you print out the forms and gather the information before you begin the online application process.
For Arkansas SBTDC assistance with an EIDL disaster loan: 1-800-862-2040
For SBA assistance applying for an EIDL disaster loan: 1-800-659-2955
For The Conductor assistance contact : Grace@ARConductor.org or Tiffany@ARConductor.org
Fact sheet for borrowers to review before meeting with your lender.
How do I APPLY?
Apply online at www.SBA.gov/disaster
The SBA administers the EIDL program. Please contact the SBA with specific questions.