The U.S. Small Business Administration has re-opened the application portal for the Economic Injury Disaster Loan and the EIDL Advance for all business types as of June 15, 2020.
The re-opened SBA portal is an updated version of the original process for small businesses and non-profits that have been affected by the COVID-19 pandemic.
“To meet the unprecedented need, the SBA has made numerous improvements to the application and loan closing process, including deploying new technology and automated tools,” said SBA Administrator Jovita Carranza.
According to the SBA:
SBA’s EIDL program offers long-term, low interest assistance for a small business or non-profit. These loans can provide vital economic support to help alleviate temporary loss of revenue. EIDL assistance can be used to cover payroll and inventory, pay debt or fund other expenses. Additionally, the EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid.
The EIDL is a loan that may be used for a variety of business expenses, including debts, payroll, accounts payable, and other bills. The interest rate is 3.75% for small businesses and 2.75% for non-profits, with terms up to 30 years.
The EIDL Advance is an emergency relief packages of $1,000 for each employee a business employed pre-pandemic, up to $10,000. according to the SBA, the EIDL Advance “will not have to be repaid, and small businesses may receive an advance even if they are not approved for a loan.”
For more information, join one of LA SBDC’s upcoming, no-cost webinars or visit the SBA Disaster Loan Application webpage at: https://www.sba.gov/page/disaster-loan-applications