Economic Injury Disaster Loans :

    UPDATE:
    June 15, 2020

    In response to the Coronavirus (COVID-19) pandemic, small business owners in all U.S. states, Washington D.C., and territories are able to apply for an Economic Injury Disaster Loan and the advance of up to $10,000. This advance is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue. This loan advance will not have to be repaid. Recipients do not have to be approved for a loan in order to receive the advance, but the amount of the loan advance will be deducted from total loan eligibility.

    SBA will begin accepting new Economic Injury Disaster Loan (EIDL) and EIDL Advance applications on June 15 to qualified small businesses and U.S. agricultural businesses.

    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 small businesses and agricultural businesses may apply for the Loan Advance here.

    If you have questions and/or would like assistance with applying for the EIDL, please email me

    For more information about SBA Loan Programs related to COVID-19 relief, including the PPP, please click here.

    UPDATE:
    April 23, 2020

    House set to pass $484 billion bill with money for small businesses, hospitals and testing to battle coronavirus

  • If you’ve already applied for an EIDL: The SBA is processing applications already in their system on a first-come, first-served basis. You do not need to reapply.
  • If you have not already applied for an EIDL: Check back at the SBA application page once the additional funding is signed into law. The SBA will re-open applications shortly afterwards.
  • If you’ve already applied for a PPP loan through an SBA lender but have not been approved yet: Check with your lender to see if they are maintaining a queue of applications during the lapse or if you will need to reapply when the renewed funding comes through.
  • If you have not applied yet for a PPP loan through an SBA lender: Have the application form filled out and your documentation ready to provide to your lender. (For businesses with employees, have payroll documentation; for independent contractors, have your 2019 Form 1040, Schedule C, and 1099-MISC.) If you have an existing relationship with an SBA lender, you should go to that lender first once the program reopens, but be prepared to try multiple lenders, which you can find on the SBA site.
  • UPDATE:
    April 16, 2020

    Ryan Lambert, Intergovernmental Affairs Officer for the U.S. Small Business Administration (SBA) has provided a statement by Secretary Mnuchin and Administrator Carranza on the Paycheck Protection Program and Economic Injury Disaster Loan Program.

    Currently SBA has issued a Lapse in Appropriations Notice. SBA is unable to accept new applications at this time for the Paycheck Protection Program or the Economic Injury Disaster Loan COVID-19 related assistance program (including EIDL Advances) based on available appropriations funding.

    This powerful resource is critical to the recovery of many small businesses.

    EIDL applicants who have already submitted their applications will continue to be processed on a first-come, first served basis.

    Further noted was: “SBA has processed more than 14 years’ worth of loans in less than 14 days. The Paycheck Protection Program is saving millions of jobs and helping America’s small businesses make it through this challenging time. The EIDL program is also providing much-needed relief to people and businesses. By law, the SBA will not be able to issue new loan approvals once the programs experience a lapse in appropriations. SBA is urging Congress to appropriate additional funds for the Paycheck Protection Program.”

    An additional $2.5 Billion has been proposed for use by qualifying SBA loan applicants.

    In the interim, LEDBizloan.com remains an option. If your lending institution(s) are not participating in the program currently, there remains capacity in the program. Lenders are encouraged to contact LED’s Kelly Raney for additional information (Kelly.raney@la.gov)

    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.
    For a guide to the SBA’s Economic Injury Disaster Loans from the US Chamber of Commerce, click HERE.

    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

  • 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 Paycheck Protection Program


    How do I APPLY?
    Apply online at www.SBA.gov/disaster.
    The SBA administers the EIDL program. Please contact the SBA with specific questions.