Economic Injury Disaster Loans (EIDL) Portal Reopening Offers Additional Relief For Businesses
Last week, the Small Business Administration (SBA) resumed accepting new online applications for EIDL and related emergency grants.
The streamlined application is available at https://covid19relief.sba.gov/#/
Most small businesses who have been financially impacted by COVID-19 will qualify for a loan of up to $150,000. Some of the companies who applied for an EIDL loan last week reported the receipt of loan funds within a few days of submission of their application. As part of the application, borrowers may also request an EIDL Advance of up to $10,000 to provide emergency relief to companies suffering from a decline in revenue. The advance can be made even if the related loan is not approved, and does not have to be repaid.
The amount of information requested about the business and the owners has been reduced and the application is designed to take less than 20 minutes to complete. Although owner information must be provided, personal guarantees are not required.
The fixed interest rate the SBA charges on an EIDL is 3.75% (2.75% for non-profit organizations), with repayment terms of up to 30 years. In addition, no payments are required for the first year.
Borrowers who have received a PPP loan from the SBA are still eligible for EIDL. Any EIDL Advance received will reduce the amount of your PPP loan forgiveness. Please note that if you are still considering the submission of a PPP loan application, the deadline is June 30, 2020. You can apply for an EIDL loan related to COVID-19 through December 31, 2020.
Businesses recovering from the impact of COVID-19 should evaluate all options for relief. Please contact your Anchin Relationship Partner or our COVID-19 Resource Team to see how the EIDL Program may be part of the relief available for your business.
Disclaimer: Please note this is based on the information that is currently available and is subject to change.