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 July 13, 2020.

 

IMPORTANT UPDATE:  As of June 15, 2020, the SBA is now accepting new applications for the SBA economic injury disaster loans (EIDL) from all types of small businesses and nonprofits. However, the SBA is no longer providing EIDL advances to new applicants because it has run out of funding for the advances.

 

What should I do if I already applied?

  • If you have already applied and you have an SBA ten-digit number that starts with a ‘3’, you do not need to re-apply.  The SBA is continuing to work through its backlog of applications and anticipates processing pending applications within the next few weeks. 
  • If you applied before March 29th and you have a ten-digit number that starts with a ‘2’, you need to reapply.
  • Non-agricultural businesses that applied when the portal was only open to agricultural businesses between May 4th and June 14th (you may have received an email from SBA stating you could not apply at that time), you do not need to re-apply.  Those applications will be processed.

 

Funding status

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.  There is no end date for this program. As of July 11, 2020, the SBA had allocated all of the funds provided for EIDL advances.

 

Overview

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.

 

Eligibility

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.

 

Amount

The law provides that applicants can request up to $10,000 for the advance and $2 million for the loan; 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. There have also been reports that the SBA has also lowered the maximum loan size to $150,000.  However, SBA has not provided public guidance on how it will determine the amount of the advance or loan.  Please check the Small Business Administration website 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.

 

More Information

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.

If you need additional assistance, please reach out to your local Small Business Development Center, Women’s Business Center, SCORE chapter, or SBA District Office.