SBA Economic Injury Disaster Loan (EIDL) & Targeted EIDL Advance*
EIDL Application Filing Deadline: December 31, 2021
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).
In December 2020, SBA extended the deadline to December 31, 2021 for accepting new EIDL applications from qualified small businesses and U.S. agricultural businesses.
*Note: Targeted EIDL Advance applicants do not need to take any action at this time. The SBA will reach out to those who qualify.
Applicant must be physically located in the United States or designated territory and suffered working capital losses due to the coronavirus pandemic, not due to a downturn in the economy or other reasons. Eligible applicants include:
- Businesses with 500 or fewer employees or defined as small per SBA.gov/SizeStandards
- Cooperatives with 500 or fewer employees
- Agricultural enterprises with 500 or fewer employees
- Most private nonprofits
- Faith-based organizations
- Sole proprietorships and independent contractors
Ineligible businesses include those engaged in illegal activities, loan packaging, speculation, multi-sales distribution, gambling, investment or lending
Targeted EIDL Advance
The Targeted EIDL Advance program is available to applicants in low-income communities who previously received an EIDL advance for less than $10,000, or those who applied but received no funds due to lack of available program funding. The SBA will reach out to those who qualify.
Loan Terms & Forgiveness
- 3.75% for businesses (fixed)
- 2.75% for nonprofits (fixed)
- 30 years
- No pre-payment penalty or fees
- Payments are deferred for one year (interest still accrues)
Targeted EIDL Advance
The EIDL Emergency Advance loan does not have to be repaid. Advance funds of up to $10,000 will be available to applicants located in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding.
Targeted EIDL Advance Program Details
SBA will first reach out to EIDL applications that already received a partial EIDL Advance (i.e. between $1,000 – $9,000). Applicants will be contacted directly by SBA via email in the coming weeks with instructions to determine eligibility and submit documentation.
Applicants may qualify if they:
- Are located in a low-income community. The definition of a “low-income community” is defined in section 45D(e) of the Internal Revenue Code. Note that the applicant must be located in a low-income community in order to qualify. Additional details on how SBA will identify low-income communities will be available soon on www.sba.gov/coronavirusrelief; AND
- Can demonstrate more than 30% reduction in revenue during an 8-week period beginning on March 2, 2020, or later. If an applicant meets the low-income community criteria, they will be asked to provide gross monthly revenue (all forms of combined monthly earnings received, such as profits or salaries) to confirm the 30% reduction.
Next, SBA will reach out to those who applied for EIDL assistance on or before December 27, 2020, but did not receive an EIDL Advance due to lack of program funding. These applicants will receive an email from SBA with instructions to determine eligibility and submit documentation. Applicants may qualify for a Targeted EIDL Advance if they meet the above criteria (low-income location and reduction in revenue) AND:
- Have 300 or fewer employees. Business entities normally eligible for the EIDL program are eligible, including sole proprietors, independent contractors, and private, nonprofit organizations. Agricultural enterprises are not eligible.
Deadline & How to Apply
The EIDL program application deadline is December 31, 2021.
Qualified small businesses, agricultural businesses, and nonprofits should apply directly with the SBA at https://covid19relief.sba.gov.
Targeted EIDL Advance applicants do not need to take any action at this time. The SBA will reach out to those who qualify. All communications from SBA will be sent from an official government email with an @sba.gov ending. Please do not send sensitive information via email to any address that does not end in @sba.gov.
For application status inquiries and/or questions about the EIDL program:
If you have additional questions or require further assistance, please call our Disaster Customer Service Center at 1-800-659-2955 or, for the deaf and hard-of-hearing 1-800-877-8339 (Monday through Friday from 8:00 am to 8:00 pm, Saturday and Sunday from 8:00 am to 8:00 pm Eastern Time) or email us at: disastercustomerservice@sba.
For more information about the EIDL and Targeted EIDL Advance programs, click here.