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SBA Economic Injury Disaster Loans

How does it work?

        • The application is open to businesses that were operating before January 31, 2020. 
        • Registration ends December 31, 2021.

Where else can I get funding?

You can also apply for funding through the Paycheck Protection Program (PPP) - also part of the CARES Act where you can borrow up to 2.5x average monthly payroll costs.

Is my business eligible?

You can qualify for an EIDL if your business can prove to have been affected by the coronavirus pandemic, is located in the USA and is classified as a “small business” as defined by the SBA, that is:

        • Businesses or ESOPs with up to 500 employees
        • Nonprofit organizations
        • Eligible independent contractors
        • Sole proprietors 
        • Tribal businesses

Usually, you’d need to provide collateral, but due to the Coronavirus crisis, the SBA is waiving that requirement for now. Keep in mind that this is still a loan, therefore, you’ll still need a relatively good credit score to prove that you can repay the funds.

What can the funds be used for?

The EIDL was designed to help your business get back on track until normal business operations continue once again. The funds must be used to pay for existing business costs such as business debts, make payroll, and other bills that you could have paid had the coronavirus outbreak (disaster) not occurred.

Note that your EIDL cannot be used to replace lost revenue, refinance debt, or pay back loans.

What are the interest rates?

The interest rates of the coronavirus EIDL is 3.75% for businesses and 2.75% for non-profits.

Moreover, these disaster loans offer four months of payment deferral automatically that begins from the date of the note.

Which businesses are not eligible?

Businesses that don’t qualify for the SBA coronavirus business loan include:

        • agricultural businesses
        • adult entertainment
        • religious organizations
        • some charitable organizations
        • gambling businesses
        • lobbying
        • government entities
        • businesses that are owned at least 20% by the People's Republic of China or the Special Administrative Region of Hong Kong
        • businesses that include a board member who is a resident of the People's Republic of China
        • businesses that received a shuttered venue operator grant

How quickly can I get the funds?

For businesses in need of immediate cash, eligible small businesses will be able to access an advance of up to $10,000 within 3 days of applying! You won’t be required to repay that advance if denied a loan - making this a great opportunity for many businesses.

You should receive a decision within 21 days. You’ll then be asked to review your loan amount and terms and sign the required documents. Once signed, you should get your funds from the SBA via direct deposit within 3-5 business days.

How much money can I borrow?

You can request a loan amount up to $2 million to support your business through this economic crisis. 

Where does the money come from?

Unlike typical SBA loans where funding comes from a bank, capital from an EIDL comes directly from the US Treasury.

Do I need a personal guarantee?

No personal guarantee needed for EIDLs of less than $200,000.

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