On March 12th, 2020, during the beginning stages of the pandemic, the SBA (Small Business Administration) announced that they released a program called the EIDL (Economic Injury Disaster Loan) to offer financial relief to the 30+ Million business owners in the U.S that were being affected by the pandemic. This program provides economic relief in the form of a long term, low interest loan to small businesses and nonprofit organizations that were, or are still currently experiencing a temporary loss of revenue due to the effects of COVID-19 on their business. The program originally offered a maximum loan of $150,000 when it was first released in 2020, they have since upped the maximum loan amount a business can receive to $2,000,000.
The EIDL loan terms as of May 2021 are as follows...
- Up to $2,000,000 in funding (Up from $150,000)
- 30 Year term
- No Payment for 24 Months from Date of Original Funding
- 3.75% fixed rate for businesses and 2.75% fixed for nonprofits
- No pre-payment penalty or fees
The requirements are as follows...
- Must have been in business prior to January 2020
- Personal Credit 550+
- No Defaults on prior SBA Loans
- No Bankruptcies
If you already got the PPP (Payroll Protection Program), you can still qualify and get the EIDL as well.
What can I use COVID-19 EIDL funds for? And how is that different from PPP funds?
EIDL proceeds can be used to cover a wide array of working capital needs and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments.
Can you help with an appeal?
Can I apply for the COVID-19 EIDL if I already received a PPP loan?
Yes. Borrowers can apply for both the PPP and EIDL, although funds from both cannot be used for the same purpose.
What do I need to apply?
Just fill out the 1 page application and one of our specialists will get back to you the same or next day.
Who is eligible for COVID-19 EIDL?
- Businesses with 500 or fewer employees
- Agricultural enterprises with 500 or fewer employees
- Most private nonprofits
- Faith-based organizations
- Sole proprietorships and independent contractors
Can you help with an increase?
I applied for a COVID-19 EIDL loan and I haven’t heard anything about my application. Should I reapply?
No. Any additional applications will be marked “duplicate” and will not be processed. Please call our Customer Service: Give us a call @ 888-445-1028.
I was recently declined for the EIDL due to my credit being too low, can I still qualify for other business financing?
YES! We are a full service DIRECT LENDER and have many options available besides the SBA EIDL. Fill out the application and one of our funding specialists will reach out to you soon after.