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Economic Injury Disaster Loan (EIDL)

Updated: May 12, 2021

Originally Posted Apr. 2, 2020

Are you a small business that has been significantly impacted by the COVID-19 pandemic? Businesses needing larger amounts of longer-term assistance should look at this low-interest loan program


Economic Injury Disaster Loan

This is a low-interest loan program offered by the Federal Government that is offered through the Small Business Administration (SBA) to help American companies who have been affected by a natural disaster. Unlike past EIDL offerings, for COVID-19, this assistance program has been expanded to include many different business types not usually included as well as including a grant-like advancement of up to $10,000 that does not have to be repaid.

Who is an Eligible Recipient?

In addition to the entities that are already eligible for SBA disaster loans (small businesses, private non-profits, and small agriculture cooperatives), eligibility is temporarily expanded to include: ● Business entities with 500 or fewer employees Businesses in certain industries may have more than 500 employees if they meet the SBA’s size standards for those industries ● Sole proprietorship's, with or without employees ● Independent contractors ● Cooperatives and employee-owned businesses ● Tribal small businesses; and

● Private non-profits of any size.

Who is Not Eligible Recipient?

Big businesses, gambling entities, casinos, certain lending or investment concerned companies and pawnshops are not eligible for these specific loans. Also, real estate developers who engage in subdividing property into lots and developing it for resale on their own account are not eligible.

What expenses will be forgiven?

Unlike the Pay Check Protection Program, none of the loan will be forgiven, rather applying for the EIDL provides an option to also apply for the EIDL Emergency Advance, which is available up to $10,000 (per SBA's review) of relief to businesses that are currently experiencing temporary difficulties. The EIDL Emergency Advance does not need to be repaid even if the applicant is denied an EIDL, making it similar to a grant.

What should I do to prepare for participating in this loan? 

1) Figure out if you are eligible

2) Figure out how much you can or need to borrow

3) Decide if you are in a position to take on that level of debt

4) Apply, with the current condition of the economy, many businesses are applying for these loans and there is a significant wait time from applying until you actually see fund amounts.

Where do we go to apply for this loan?

To apply for the EIDL, visit the SBA's website at:

NOTE: As of 8/25/20, the SBA is taking new applications for the EIDL, however due to a lapse in funding, they are not dispensing monies until further notice. Continue to compile your information and be prepared to apply quickly if additional funds are appropriated.


Additional Random Questions Answered

How long do I have to apply for the EIDL?

The EIDL is available until December 31, 2020.

I am a new employer, am I eligible for this program?

You must have been in business as of January 31, 2020.

If I request the EIDL Emergency Advancement, will I get the full $10,000?

Possibly but it will be up to the SBA to determine how much they will offer a businesses. I have heard that the determining factor is the number of employees.

What if I already applied for and/or received a Pay Check Protection Loan? Am I still eligible to apply for this loan program?

The short answer is yes, but it becomes more difficult. One, you cannot take out the loan on expenses a loan is already taken out on. If you receive a PPP and EIDL, the amount forgiven under a Paycheck Protection Program loan will be decreased by the up to $10,000 advance. You will also have the option to roll the EIDL loan into the PPP loan.

Can I utilize the employee retention credit or delay of payment of employer payroll taxes if I take out a pay check protection loan?

No. You cannot utilize these options as well as a covered loan under paragraph (36) of section 7(a) of the Small Business Act.

How long does it take to receive this advancement?

It is intended to not take more than 3 days though the SBA has moved to 10 days and even now it could take longer than 10 days.

What can these funds be used on?

This advancement "may be used to address any allowable purpose for a loan made under section 7(b)(2) of the Small Business Act (15 U.S.C. 636(b)(2)), including—

(A) providing paid sick leave to employees unable to work due to the direct effect of the COVID–19; (B) maintaining payroll to retain employees during business disruptions or substantial slowdowns (C) meeting increased costs to obtain materials unavailable from the applicant’s original source due to interrupted supply chains; (D) making rent or mortgage payments; and (E) repaying obligations that cannot be met due to revenue losses."


Contact Info:

To follow-up on your EIDL application, connect with the 24/7 SBA Disaster Assistance Customer Service Center at 1-800-659-2955 (TTY: 1-800-877-8339) or by email @

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