Emergency Economic Injury Disaster Loans (EIDL)
Businesses with 500 employees or fewer, including sole proprietors, independent contractors, and cooperatives may be eligible for Economic Injury Disaster Loans (EIDL) during the covered period of Jan. 31 to Dec. 31, 2020 in response to COVID-19.
- The business must show hardship due to the Coronavirus.
- The Economic Injury Disaster Loans are available for up to $2 million for businesses.
- During the covered period, SBA can determine loan eligibility based solely on the applicant’s credit score or use of an alternative appropriate method for determining an applicant’s ability to repay.
- The SBA must waive any personal guarantee on loan advances or loans under $200,000.
- Legislation provides $10 billion in funding to provide an emergency advance of up to $10,000, which is forgivable debt, to small businesses within three days of the business applying for the Economic Injury Disaster Loan (EIDL).
Economic Injury Disaster Loans may be used for the following:
- Paid sick leave to employees impacted by COVID-19
- Rent/Mortgage Payments
- Debt obligations due to loss revenues
- Increased costs due to chain supply disruptions and materials
Apply through a local SBA Lender. More details can be found here