SBA Economic Injury Disaster Loan (EIDL) & Targeted EIDL Advance*
EIDL Application Filing Deadline: December 31, 2021
Last Updated: September 10, 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).
Update: SBA Administrator Guzman Enhances COVID Economic Injury Disaster Loan Program to Aid Small Businesses Facing Challenges from Delta Variant: Increased Loan Cap to $2 Million, Expanded Use of Funds to Pay and Prepay Business Debt, Streamlined Review Processes, and Deferred Payments; First Approval and Disbursement of Loans of $500,000 or Less Also Introduced.
Key changes being announced by the SBA include:
- Increasing the COVID EIDL Cap. The SBA will lift the COVID EIDL cap from $500,000 to $2 million. Loan funds can be used for any normal operating expenses and working capital, including payroll, purchasing equipment, and paying debt.
- Implementation of a Deferred Payment Period. The SBA will ensure small business owners will not have to begin COVID EIDL repayment until two years after loan origination so that they can get through the pandemic without having to worry about making ends meet.
- Establishment of a 30-Day Exclusivity Window. To ensure Main Street businesses have additional time to access these funds, the SBA will implement a 30-day exclusivity window of approving and disbursing funds for loans of $500,000 or less. Approval and disbursement of loans over $500,000 will begin after the 30-day period.
- Expansion of Eligible Use of Funds. COVID EIDL funds will now be eligible to prepay commercial debt and make payments on federal business debt.
- Simplification of affiliation requirements. To ease the COVID EIDL application process for small businesses, the SBA has established more simplified affiliation requirements to model those of the Restaurant Revitalization Fund.
To obtain a loan via COVID EIDL, small business owners must meet the eligibility requirements outlined in Section 2 of the FAQS.
Additionally, below are the credit score requirements:
- $500,000 or under: 570
- greater than $500,000: 625
Small businesses must qualify for a certain loan amount by completing the economic injury formula which takes into account two years’ worth of revenue and cost of goods sold to produce an eligible loan amount. Review Section 2 of the FAQS and Intake application form checklist for more details
If the small business has already obtained a loan via COVID EIDL before, complete the following steps to apply for a loan increase:
- Confirm Eligibility (review FAQs and below Loan Eligibility section)
- Log onto Account on SBA Portal (do not apply for another loan) to submit loan modification
- Complete portal steps and submit relevant documents
- Respond to SBA requests for signature, confirmation, and documents
The average SBA decision timeline for $500,000 or under loans is several weeks.
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 the first 2 years (during which interest will accrue), and payments of principal and interest are made over the remaining 28 years.
Targeted EIDL Advance & Supplemental Targeted EIDL Advance Program Details
For more information on the Targeted EIDL & Supplemental Targeted EIDL Advance, please click here.
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.
Completing the Targeted EIDL Advance application is a requirement to be considered for the Supplemental Targeted Advance, and SBA is reaching out directly to those who may qualify. All application decisions will be communicated via email.
Need more information?
For more information about the EIDL and Targeted EIDL Advance programs, click here.
For application status inquiries and/or questions about the loan program:
Please contact the SBA at 1-800-659-2955 (TTY: 1-800-877-8339) or email@example.com.
For assistance with completing an application:
Our Florida SBDC disaster recovery specialists provide one-on-one confidential consulting at no cost to help businesses prepare disaster loan applications and assist with other post-disaster challenges. Please note that consultations are taking place via phone call or virtual meeting. Due to the COVID-19 pandemic, we are experiencing high volumes of calls, emails, and requests for consulting. We will work to respond to your request as quickly as possible. We ask that you remain patient during this time and we’ll be in touch with you as soon as possible.
Find your local SBDC office by clicking here.