The U.S. Small Business Administration (SBA) is offering low-interest federal disaster loans for working capital (up to $2 million) to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
Economic Injury Disaster Loans (EIDL) are available statewide in Indiana, Michigan, and Tennessee to small businesses and private, non-profit organizations to help alleviate economic injury caused by COVID-19. Other approved states can be found here.
EIDL loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years. Terms are determined on a case-by-case basis, based upon each borrower’s ability to repay.
EIDL funds come directly from the U.S. Treasury - applicants do not go through a bank to apply. There is no cost to apply and no obligation to take the loan if approved. Applicants can have an existing SBA Disaster Loan and still qualify for an EIDL, but the loans cannot be consolidated.
If interested, we recommend that businesses apply online as soon as possible due to anticipated high demand. If you do not have access to a computer or smartphone, please call 1‐800‐659‐2955 for assistance. Applicants will receive an answer within 21 days from SBA on approval, and another two weeks to process paperwork and disburse funds. Total estimated timeline is 4-6 weeks to fund if approved.
CLICK HERE to download the Three Step Disaster Loan Process Guide
This guide outlines each step in the application process, including required documents you'll need to submit with your application. The biggest reason for delays in processing is due to missing information. Make sure to complete all filing requirements before submitting the application and forms.