The Economic Injury Disaster Loan and Loan Advance (EIDL) 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. Small businesses can access a $10,000 loan advance that is not repaid.
Can I apply directly with an SBA-approved lender for an EIDL or Emergency EIDL (cash advance grant)?
What are the basic filing requirements for applying for an EIDL and Emergency EIDL?
What is considered “substantial economic injury”?
How long will it take my loan application to be approved and for me to receive money?
Is there loan forgiveness for either the EIDL or the Emergency EIDL?
What can I not use the EIDL or Emergency EIDL for?
If I receive an EIDL, can I apply still for a PPP loan?
Are any normal requirements for an EIDL waived at this time?
If I need assistance with my application, who should I contact?
You must apply for both the EIDL and the emergency EIDL directly online with the SBA at https://disasterloan.sba.gov/ela or you can also reach out to your local SBA District Office.
Small businesses must submit:
Additional information that may be requested:
Substantial economic injury generally means a decrease in income from operations or working capital with the result that the business is unable to meet its obligations and pay ordinary and necessary operating expenses in the normal course of business.
Once a borrower applies for an EIDL, approval timelines can vary depending on volume. Typically, a decision is made within 21 days of application, and disbursement of money within five business days. Borrowers are assigned individual loan officers for servicing the loan.
For the Emergency EIDL (cash advance grant), upon the successful application, the SBA will disperse the money within three business days.
There is no loan forgiveness for the EIDL. However, the $10,000 Emergency EIDL cash advance is not expected to be repaid, if it is used for:
The emergency loan is also forgivable even if the grantee is subsequently denied an EIDL.
Small businesses cannot use an EIDL or Emergency EIDL cash advance for any of the following purposes:
Small businesses can take advantage of multiple SBA programs. However, loans must be used for different purposes. For instance, both the EIDL and PPP may be used to assist with salaries, but you cannot “double-dip.” So, for the eight-week period of the PPP, the EIDL could cover the salary “gap” for employees who make over $100,000 or for a different time period.
For any EIDL application resulting from COVID-19, the following requirements are waived:
We recommend speaking with your accountant or financial advisor. SBA offers work with local partners to provide assistance to small businesses, and you find a local partner here.
Read more about both SBA Loan programs from APMA’s outside law firm Foley & Lardner, LLP. Additional information on SBA assistance and small business resources are provided by APMA’s health policy consultants Hart Health Strategies.