SBA Economic Injury Disaster Loan and Emergency Grant
This page will be updated continuously to reflect the most recent information on the coronavirus. This page was last updated on April 27, 2020.
IMPORTANT UPDATE: On April 24, 2020, the Paycheck Protection Program and Health Care Enhancement Act was signed into law, providing an additional $50 billion for EIDL loans and an additional $10 billion for emergency advances. This new law also expanded eligibility to include agriculture businesses with less than 500 employees. The funding could be made available very soon, at which point the SBA will begin accepting applications again. Please check the SBA’s website for updates.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act temporarily expands eligibility for SBA economic injury disaster loans (EIDL) and provides an emergency advance of up to $10,000 to small businesses and private non-profits harmed by COVID-19.
To access the advance, you 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.
Note: while the law provides that SBA shall provide the funds within three days of applying for an SBA Economic Injury Disaster Loan (EIDL), overwhelming interest in the program has slowed the process. This makes it difficult to estimate when applicants will receive the advance.
In addition to the entities that are already eligible for SBA disaster loans (small businesses, private non-profits, and small agriculture cooperatives), eligibility is temporarily expanded to include:
- Business entities with 500 or fewer employees:
- Sole proprietorships, with or without employees
- Independent contractors
- Cooperatives and employee owned businesses
- Tribal small businesses
- Private non-profits of any size
- New eligibility: Agriculture enterprises with less than 500 employees.
Additionally, you must have been in business as of January 31, 2020. Expanded eligibility criteria and the emergency advance are only available between January 31, 2020 and December 31, 2020.
How to Apply
- You can apply for an EIDL online with the SBA.
- When you apply, you can request an emergency advance of up to $10,000.
- You will not have to repay the advance, even if your application for a loan is denied.
- You can visit an SBA resource partner who can help guide you through the loan application process. You can find your nearest Small Business Development Center (SBDC) or Women’s Business Center here.
The law provides that applicants can request up to $10,000; however, it seems that the SBA may scale the advance based on the number of employees an applicant has. Based on reports, the SBA may provide $1,000 per employee for up to ten employees. However, SBA has not provided public guidance on how it will determine the amount of the advance. Please check back for updates.
Can I apply for other SBA loan programs?
If you apply for an EIDL and the advance, you can still apply for a Paycheck Protection loan. However the amount forgiven under a Paycheck Protection loan will be decreased by the amount of the advance that you received.
For more information about SBA loan programs, please visit the Small Business Administration. More information about small business programs in the CARES Act can be found on the U.S. Senate Committee on Small Business and Entrepreneurship website.