Updated: 8/4/2021
Candace J. Dixon
The FAQs for COVID-19 EIDL were overhauled on August 4, 2021 replacing all previous guidance. COVID EIDL Loans FAQs is the latest version.
The Small Business Administration's (SBA) Economic Injury Disaster Loan (EIDL) provides up to $2 million of financial assistance to sole proprietorships and independent contractors; businesses with 500 or less employees (or considered small by the SBA’s Size Standards), cooperatives and agricultural enterprises with 500 or less employees; and private non-profits and faith-based organizations located in a disaster declared or bordering county that are currently experiencing substantial economic injury as a result of the declared disaster, regardless of whether or not they sustained physical damage. EIDL funds are not currently forgivable; they need to be paid back monthly for the next 30 years. EIDLs are available through Dec. 31, 2021.
An EIDL can help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Loan proceeds may be used for working capital and normal operating expenses including continuation of health care benefits, rent, utilities, fixed debt payments. EIDLs do not replace lost sales or revenues. You can apply for the EIDL if you already received a Paycheck Protection Program loan, but funds from both loans can't be used for the same purpose.
Terms:
The maximum loan amount for loans approved beginning the week of April 6, 2021 is 24-months of economic injury with a maximum loan amount of $500,000.
Maturity rate of 30 years
3.75% fixed interest rate for business, 2.75% for nonprofits.
Collateral is required for loans over $25,000
Deferment periods have been extended until next year
The first payment due date for loans made in 2020 is 24 months from the date of the note. The first payment for loans made in the 2021 is due18 months from the date of the note
Answer these questions on the Benefits.gov website to see if you may be eligible.
The COVID-19 EIDL Loan Application, which has been streamlined for COVID-19 loans and takes about 2 hours to complete, can be completed on the SBA website. Each business can only apply for a Covid-19 EIDL once.
You can create an account in the SBA Capital Access Financial System (CAFS) to monitor the status of your loan. CAFS Account Enrollment Instructions can be found here.
There are no upfront fees or early payment penalties charged by SBA. The repayment term will be determined by your ability to repay the loan. The 1201 Borrower Payments form on the Pay.gov website can be used to pay the EIDL.
Payments can also be mailed to:
U.S. Small Business Administration 721 19th Street Denver, CO 80202
Be sure to include the EIDL loan number on your check.
Resources:
Cross-program eligibility on SBA COVID-19 relief options
FAQ Regarding Participation of Faith-Based Organizations in PPP and EIDL
FAQ Regarding Agricultural and Farm Loan Collateral Security and the SBA EIDL Program
Report suspected EIDL ID theft