The SBA is offering low interest federal disaster loans for working capital.
To meet the needs of small businesses and non-profits, the U.S. Small Business Administration (SBA) today reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible small businesses and nonprofits experiencing economic impacts due to COVID-19.
SBA’s EIDL program provides low interest, long-term assistance for small businesses or non-profit organizations. These loans help alleviate temporary loss of revenue and can be used to fund expenses, pay debt, and cover payroll and inventory. The EIDL Advance offers up to $10,000 ($1,000 per employee) of emergency relief to businesses experiencing temporary difficulties, and these emergency funds do not need to be repaid.
SBA’s Economic Injury Disaster Loan (EIDL) and EIDL Advance During COVID-19
- The SBA is providing working capital in the form of low interest federal disaster loans. The loans are available to small businesses and non-profit organizations that have suffered substantial economic injury from the COVID-19 pandemic.
- These SBA loans may be used for payroll, debts, accounts payable and other bills that are not already covered by a Paycheck Protection Program loan. The interest rate is 3.75% for small businesses and 2.75% for non-profits.
- The first payment is deferred for one year and the loans have repayment terms extend to a maximum of 30 years.
- As part of the loan application, small businesses and non-profits may request an EIDL Advance of up to $10,000. The EIDL Advance offers emergency relief to businesses currently experiencing a loss of revenue. Small businesses may receive an advance even if not approved for a loan and the advance does not have to be repaid.
- The SBA is also offering the Paycheck Protection Program (the federal forgivable loan program) which is still accepting applications through June 30, 2020.
For more information about disaster assistance, please visit the SBA website at SBA.gov/Disaster.
For the latest updates on legislation that affects your business or nonprofit organization, please visit the CGA COVID-19 Business Resource Page on our website.
For additional information about EIDL, PPP, or any other federal disaster assistance program, please contact a CGA Business Law attorney.
For assistance reopening your business after the Governor’s closure order, please contact a CGA Labor and Employment Law attorney.
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