COVID-19 Economic Injury Disaster Loans (EIDL)

In response to the Coronavirus (COVID-19) pandemic, small business owners, including agricultural businesses, and nonprofit organizations in all U.S. states, Washington D.C., and territories can apply for an Economic Injury Disaster Loan. The EIDL program is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to coronavirus (COVID-19).

Here are some basic facts about this program:

PURPOSE:

To meet financial obligations and operating expenses that could have been met had the disaster not occurred.

TERMS:

3.75% for businesses (fixed)

2.75% for nonprofits (fixed)

30 years

No pre-payment penalty or fees

USE OF PROCEEDS:

Working capital & normal operating expenses Example: continuation of health care benefits, rent, utilities, fixed debt payments.

COLLATERAL REQUIREMENTS:

Required for loans over $25,000. SBA uses a general security agreement (UCC) designating business assets as collateral, e.g. machinery and equipment, furniture and fixtures, etc.

NOT FORGIVABLE

MATURITY:

30 years

PAYMENTS:

Deferred 1 year; interest still accrues. Borrower may make payments if they choose to do so.

SBA is currently accepting new Economic Injury Disaster Loan (EIDL) applications from all qualified small businesses, including agricultural businesses, and private nonprofit organizations.

Please contact our office so we can schedule a consultation with you by clicking Here.  Type in the Subject line "EIDL Loan" and provide your name and phone number to be contacted.