COVID-19 Economic Injury Disaster Loans
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).

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

If you have already applied via the streamlined application portal, please do not resubmit your application.

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.
FORGIVABLE

NO – EIDL Loan

MATURITY

30 years

PAYMENTS

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

Set up online payments through Pay.gov OR mail payments to:

U.S. Small Business Administration
721 19th Street
Denver, CO 80202


https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loans