The Small Business Administration (SBA) has decided to reopen the Economic Injury Disaster Loan (EIDL) and EIDL Advance Program to all eligible applicants experiencing economic impacts due to COVID-19. This is in an effort for the SBA to further meet the needs to U.S. small businesses and non-profits, including agricultural enterprises.
All eligible organizations will be able to receive long-term, low interest loans and emergency grants. Because of the high volume of loan applications, the SBA has deployed new technology and automated tools to make the process move smoother and faster. EIDL assistance can be used to cover payroll and inventory, pay debt or fund other expenses. The EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties. These emergency grants do not have to be repaid.
SBA’s COVID-19 Economic Injury Disaster Loan (EIDL) and EIDL Advance
- The SBA is offering low interest federal disaster loans for working capital to small businesses and non-profit organizations that are suffering substantial economic injury as a result of COVID-19 in all U.S. states, Washington D.C., and territories.
- These loans may be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
- To keep payments affordable for small businesses, SBA offers loans with long repayment terms, up to a maximum of 30 years. Plus, the first payment is deferred for one year.
- In addition, small businesses and non-profits may request, as part of their loan application, an EIDL Advance of up to $10,000. The EIDL Advance is designed to provide emergency economic relief to businesses that are currently experiencing a temporary loss of revenue. This advance will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan.
- SBA’s EIDL and EIDL Advance are just one piece of the expanded focus of the federal government’s coordinated response.
- The SBA is also assisting small businesses and non-profits with access to the federal forgivable loan program, the Paycheck Protection Program. PPP is currently accepting applications until June 30, 2020.
For additional information, please visit the SBA disaster assistance website or visit the COVID-19 Resources page on the Arizona Farm Bureau website. Remember you can always reach out to the government relations team for any questions or concerns.