Coronavirus (COVID-19) Relief Center
- Relief Center
- New York State
- New York City
- Washington State
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
Description of Program and Relief
Small Business Administration Economic Injury Disaster Loans
Economic Injury Disaster Loans (“EIDLs”) provide working capital to help small business concerns, small agricultural cooperatives and aquaculture companies, and most private non-profit organizations (of all sizes) meet financial obligations that they might not otherwise be able to meet as a result of a disaster. Small businesses and non-profit organizations in all states and territories are now eligible to apply for EIDLs through the United States Small Business Administration (“SBA”) to alleviate economic injury caused by the COVID-19 disaster.
The SBA may generally grant EIDLs up to $2 million, but can waive this limit if a business is a major source of employment. Each EIDL is limited to the amount of the economic injury caused by the COVID-19 disaster, less any business interruption insurance or other recoveries the business receives. In determining the appropriate size of the EIDL, the SBA will also consider potential contributions that are available from the business owners and/or affiliates.
The SBA determines the appropriate term and installment repayment plan for each EIDL based upon the financial condition of the borrower. The term can be up to 30 years and includes a fixed interest rate of 3.75% for small businesses and 2.75% for non-profit organizations.
Government or Lead Agency
United States Small Business Administration
Loans are currently available in all states and territories and will be available through at least December 16, 2020.
To be eligible to receive an EIDL, applicants must:
Pass a credit history check by the SBA,
Demonstrate an ability to repay the loan, and
Provide collateral for all EIDLs over $25,000. Real estate may be used as collateral when available. The SBA will not decline a loan because the borrower does not have collateral to provide, but if collateral is available, the SBA will require the borrower to pledge it.
Applicants who have previously not complied with the terms of SBA loans may not be eligible. EIDLs cannot be used to refinance long term debts. The SBA may require borrowers to obtain and maintain insurance, including flood insurance for collateral property if it is located in a flood hazard area.
Application Deadlines (If Applicable)
December 16, 2020
Contact for More Information
SBA’s Customer Service Center
Tel: (800) 659-2955
Tel: (800) 877-8339 (TTY: deaf and hard-of-hearing)
List of Additional Information
Additional information on the EIDL application process:
Register for an account to apply online or download application forms:
Additional information on SBA disaster assistance in response to COVID-19:
© 2020 Paul, Weiss, Rifkind, Wharton & Garrison LLP. This does not constitute legal advice and does not create an attorney-client relationship. In some jurisdictions, this publication may be considered attorney advertising. Past representations are no guarantee of future outcomes.