On March 27, 2020, Congress passed the historic CARES Act. With its passing, a host of stimulus programs became available to combat the impact of COVID-19 on our economy. One of the programs established by the CARES Act was the EIDL loan program. While the guidelines and parameters have changed several times, funding is still available. Even if you already took out a paycheck Protection Loan (PPP),you can take an EIDL as well.
What is an EIDL loan?
The Economic Injury Disaster Loan (EIDL) is a Small Business Administration guaranteed loan program. Its purpose is to help businesses meet their financial obligations and operating expenses while still in the face of the COVID-19 crisis. The program is available in to businesses in all U.S. states and territories owned by U.S. citizens, non-citizen nationals, or resident aliens. Businesses with 500 or fewer employees as well as sole proprietors and independent contractors are eligible to participate.
Below is a helpful Frequently Asked Question form to help answer any questions you may have.
The EIDL program information is as follows:
- Interest rate: 3.75% for businesses and 2.75% for non-profits
- 30 year Term
- No prepayment penalty or guarantee fees
- No payments for first year
- Use funds for working capital and normal operating expenses
- For loans greater than $25,000.00, the SBA will file a general security agreement (UCC) designating business assets such as furniture, machinery and equipment, and fixtures as collateral
- Borrow up to six months of working capital to a maximum of $150,000.00
- No personal guarantee required
- If your business is located in a federally designated disaster area due to weather or civil unrest and you already have a COVID EIDL loan, you may be eligible for an additional EIDL loan.
EIDL Application Assistance
Our staff are here to provide application assistance for you and your small business. We are not a federal agency or a loan lender. We are an application assistance provider for this program. In light of having served over 3300 clients obtain loans over the past 5 years, our experienced staff will help insure that your business successfully applies for and receive these much needed funds.