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Tuesday, 16 June 2020 16:41

SBA's Economic Injury Disaster Loans and Advance Program Reopened

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To further meet the needs of U.S. small businesses and nonprofits, the U.S. Small Business Administration on June 15 reopened the Economic Injury Disaster Loan (EIDL) and EIDL Advance program portal to all eligible applicants experiencing economic impacts due to COVID-19.

“The SBA is strongly committed to working around the clock, providing dedicated emergency assistance to the small businesses and nonprofits that are facing economic disruption due to the COVID-19 impact," said SBA Administrator Jovita Carranza. "With the reopening of the EIDL assistance and EIDL Advance application portal to all new applicants, additional small businesses and nonprofits will be able to receive these long-term, low interest loans and emergency grants---reducing the economic impacts for their businesses, employees and communities they support.

 

“Since EIDL assistance due to the pandemic first became available to small businesses located in every state and territory, SBA has worked to provide the greatest amount of emergency economic relief possible. 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.”

 

SBA’s EIDL program offers long-term, low-interest assistance for a small business or nonprofit. 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 currently experiencing temporary difficulties, and these emergency grants do not have to be repaid.

 

SBA’s COVID-19 Economic Injury Disaster Loan (EIDL) and EIDL Advance

 

The SBA is offering low interest federal disaster loans for working capital to small businesses and nonprofit organizations suffering substantial economic injury as a result of COVID-19 in all U.S. states, Washington D.C., and territories.

 

These loans may be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan. The interest rate is 3.75% for small businesses. The interest rate for nonprofits is 2.75%.


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