Spectacular news out of Washington last night: SBA reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19 today.
"With the reopening of the EIDL assistance and EIDL Advance application portal to all new applicants, additional small businesses and non-profits will be able to receive these long-term, low interest loans and emergency grants – reducing the economic impacts for their businesses, employees and communities they support," said SBA Administrator Jovita Carranza.
Remember, the SBA EIDL Loan and EIDL Advance is a separate program from today's Paycheck Protection Program.
More flexible Use of Proceeds, longer repayment terms, and different eligibility requirements. For example, certain business types not eligible for PPP may be eligible for disaster assistance under SBA EIDL Loan.
- 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.
Even better…To meet the unprecedented need, the SBA has made numerous improvements to the application and loan closing process, including deploying new technology and automated tools.
Spread the word to your small business networks and customers, especially small businesses who missed the original application period.
Question: Is my customer eligible for both a PPP Loan and SBA EIDL Loan? Yes!
For additional information, please visit the SBA disaster assistance website at SBA.gov/Disaster.