Program Reopened for Small Businesses and Nonprofits | Economic Injury Disaster Loan (EIDL)
The US Small Businesses Administration has reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19. The EIDL program offers long-term, low interest loans for small businesses and nonprofits that can be used to cover payroll and inventory, pay debt, or fund other expenses. The EIDL Advance program will provide up to $10,000 of emergency economic relief grants to businesses that are currently experiencing temporary difficulties.
Economic Injury Disaster Loan Emergency Advances provide an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury Disaster Loan (EIDL). To access the advance, you must first apply for an EIDL and then request the advance. The advance does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.
Are businesses and private non-profits in my state eligible for an EIDL related to COVID19?
Yes, those suffering substantial economic injury in all 50 states, including Vermont, may apply for an Economic Injury Disaster Loan (EIDL).
What is an EIDL and what is it used for?
EIDLs are lower interest loans of up to $2 million in assistance per business, with principal and interest deferment available for up to 4 years, that are available to pay for expenses that could have been met had the disaster not occurred, including payroll and other operating expenses.
SBA’s Economic Injury Disaster Loans (EIDL) provide economic support to overcome temporary loss of revenue. EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses and 2.75% for private non-profit organizations, which are also eligible for EIDLs. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay, up to a maximum of 30 years. Small businesses with credit available elsewhere may not be eligible.
Who is eligible for an EIDL?
Those eligible are the following with 500 or fewer employees:
- Small business concerns (including sole proprietorships, with or without employees)
- Independent contractors
- Cooperatives and employee owned businesses
- Private non-profits
- Tribal small businesses
My private non-profit is not a 501(c)(3). Is it still eligible for an EIDL and an EIDL Emergency Advance?
Yes, if you are a private non-profit with an effective ruling letter from the IRS, granting tax exemption under sections 501(c), (d), or (e) of the Internal Revenue Code of 1954, or if you can provide satisfactory evidence from the State that the non-revenue producing organization or entity is a non-profit one organized or doing business under State law.
Who is eligible for an Economic Injury Disaster Loan Emergency Advance?
Those eligible for an EIDL and who have been in operation since January 31, 2020.
How long are Economic Injury Disaster Loan Emergency Advances available?
January 31, 2020 – December 31, 2020. The advances are backdated to January 31, 2020 to allow those who have already applied for EIDLs to be eligible to also receive an advance.
If I get an EIDL and/or an Economic Injury Disaster Loan Emergency Advance, can I get a PPP loan?
Whether you’ve already received an EIDL unrelated to COVID-19 or you receive a COVID19 related EIDL and/or EIDL Emergency Advance between January 31, 2020 and June 30, 2020, you may also apply for a PPP loan. If you ultimately receive a PPP loan or refinance an EIDL into a PPP loan, any advance amount received under the EIDL Emergency Advance Program would be subtracted from the amount forgiven in the PPP.
How do I know if my business is a small business?
Please visit https://www.sba.gov/size-standards/ to find out if your business meets SBA’s small business size standards. You will need the 6-digit North American Industry Classification Code for your business and your business’ 3-year average annual revenue.
How do I apply for an economic injury disaster loan?
To apply for an EIDL online, please visit https://covid19relief.sba.gov/#/.
I am unfamiliar with the EIDL process, can anyone help me apply?
Yes, A resource partners are available to help guide you through the EIDL application process. The Vermont Small Business Development Center (VtSBDC) can help you get started.
Documents that may be requested when applying include recent federal tax return, profit-and-loss statement and balance sheet. For more information, call the SBA disaster assistance customer service center at 1-800-659-2955 or e-mail firstname.lastname@example.org. For local SBA information, call 802-828-4422.