In response to the Coronavirus (COVID-19) pandemic the Small Business Administration (SBA), is providing information on how to apply for an Economic Injury Disaster Loan (EIDL) advance of up to $10,000. This loan is available to small business owners that have 500 or less employees in all U.S. states, Washington D.C., and territories.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The EIDL loan advance program will provide immediate economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
The EIDL program will be in operation until December 31, 2020. Businesses with fewer than 500 employees, sole proprietors, independent contractors or self-employed individuals who have been in business since January 31, 2020 are eligible to apply.
The maximum loan amount under this program is $2,000,000 and no collateral is required. Personal guarantees are not required for loans less than $200,000. The duration of this loan is for up to 30 years with a fixed interest rate of 3.75% for businesses and there is no loan forgiveness. The loan can be used for payroll, fixed debts such as mortgage, rent or lease, accounts payable, and other bills.
Applicants that apply for this loan may request an advance Emergency EIDL grant of up to $10,000 from the SBA. The emergency EIDL grant of up to $10,000 is forgiven and must be used for the following expenses:
• Providing paid sick leave to employees unable to work due to the direct effect of the COVID-19
• Maintaining payroll to retain employees during business disruptions or substantial slowdowns
• Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains
•Making rent or mortgage payments
• Repaying obligations that cannot be met due to revenue losses.
Click here to begin the application process for this opportunity.
SGIA will continue to follow this important and rapidly changing situation. For more information, please contact the SGIA Government Affairs Department at govtaffairs@sgia.org.
The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. The EIDL loan advance program will provide immediate economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
The EIDL program will be in operation until December 31, 2020. Businesses with fewer than 500 employees, sole proprietors, independent contractors or self-employed individuals who have been in business since January 31, 2020 are eligible to apply.
The maximum loan amount under this program is $2,000,000 and no collateral is required. Personal guarantees are not required for loans less than $200,000. The duration of this loan is for up to 30 years with a fixed interest rate of 3.75% for businesses and there is no loan forgiveness. The loan can be used for payroll, fixed debts such as mortgage, rent or lease, accounts payable, and other bills.
Applicants that apply for this loan may request an advance Emergency EIDL grant of up to $10,000 from the SBA. The emergency EIDL grant of up to $10,000 is forgiven and must be used for the following expenses:
• Providing paid sick leave to employees unable to work due to the direct effect of the COVID-19
• Maintaining payroll to retain employees during business disruptions or substantial slowdowns
• Meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains
•Making rent or mortgage payments
• Repaying obligations that cannot be met due to revenue losses.
Click here to begin the application process for this opportunity.
SGIA will continue to follow this important and rapidly changing situation. For more information, please contact the SGIA Government Affairs Department at govtaffairs@sgia.org.