SBA reopens economic injury disaster loans and advance program

Federal Issues SBA Small Business Lending Covid-19

On June 15, the Small Business Administration (SBA) reopened the Economic Injury Disaster Loan (EIDL) and the EIDL Advance program portal to new applicants experiencing economic impacts due to the Covid-19 pandemic, including qualified small businesses and U.S. agricultural businesses. The EIDL program offers long-term, low-interest federal disaster loans for small businesses or non-profit organizations that can be used to cover payroll and inventory, pay debt, or fund other expenses not already covered by a Paycheck Protection Program loan. The loans carry interest rates of 3.75 percent for small businesses and 2.75 percent for non-profits and have terms up to a maximum of 30 years. The first payment on these loans will also be deferred for one year. In addition, as part of the loan process, qualified applicants may also apply for an EIDL Advance, which “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,” SBA notes, do not have to be repaid.