COVID-19 Emergency Injury Disaster Advance and Loans (EIDL)

EIDL EMERGENCY ADVANCE 

An emergency grant can provide an advance of up to $10,000 to small businesses and non-profits harmed by COVID-19 within three to five days of applying for a COVID-19 Economic Injury Disaster Loan (EIDL). The advance does not need to be repaid, and may be used to keep employees on payroll, pay for sick leave, meet increased production costs due to supply chain disruptions, or pay general business obligations. 

A business must have been in business as of January 31, 2020 in order to receive the emergency grant. The amount of emergency grant received (up to $10,000) is at the discretion of the Small Business Administration (SBA). 

Provided below is an overview of an SBA EIDL. The emergency grant request is part of the COVID-19 EIDL application. If you are denied the EIDL, you are not required to repay the emergency grant received. If you apply for an EIDL and the emergency grant, you can still apply for the Paycheck Protection Program (PPP) loan. However, the amount of PPP loan forgiven will be reduced by the emergency grant received.  

To apply for the COVID-19 EIDL, go to https://covid19relief.sba.gov/#/ 

INFORMATION ON EIDLS 

Economic Injury Disaster Loans are working capital loans intended to help small businesses of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These loans are intended to assist through the disaster recovery period. 

EIDLs may be used to pay fixed debts, payroll, accounts payable and other bills that cannot be paid because of the disasters impact. However, if the COVID-19 EIDL proceeds are used for payroll, PPP loan proceeds cannot also be used for the same payroll. 

LOAN AMOUNT, TERMS, & INTEREST RATE 

• Loan amount: The SBA determines the loan amount, not the applicant. The law limits EIDL up to $2 million. The loan amount is limited to the economic injury determined by the SBA, less business interruption insurance and other recoveries. If a business is a major source of employment, SBA has the authority to waive the $2 million limit. 
• Loan terms: Determined on a case-by-case basis, based upon the borrower’s ability to repay. SBA will determine an appropriate installment payment based on the financial condition of each borrower, which in turn will determine the loan term (max of 30 years). 
• Interest rate: Maximum annual rate of 3.75%.  

Updated 3/31/2020 at 11:00 AM