The Coronavirus Aid, Relief, and Economic Security (CARES) Act expands
the Small Business Administration’s long-standing Economic Injury Disaster
Loan Program (EIDL). The EIDL program was created to assist businesses,
renters, and homeowners located in regions affected by declared disasters.
Who is ELIGIBLE?
- In general, all of the following entities that have suffered
substantial economic injury caused by a disaster
provided they were in existence on January 31, 2020:
- Businesses with fewer than 500 employees
- Cooperatives, ESOPs, and tribal small businesses with
fewer than 500 employees
- Sole proprietors
- Independent contractors
- Most private nonprofits
What are the
LOAN PARAMETERS?
- The maximum EIDL is a $2 million working capital loan
at a rate of 3.75% for businesses and 2.75% for nonprofits with up to a 30-year term
- Payments on Coronavirus EIDL loans are deferred
for one year
- Up to $200,000 can be approved without a
personal guarantee
- Approval can be based on a credit score and no
first-year tax returns are required
- Borrowers do not have to prove they could not get
credit elsewhere
- No collateral is required for loans of $25,000 or less.
For loans of more than $25,000, general security
interest in business assets will be used for collateral
instead of real estate
- The borrowers must allow the SBA to review
its tax records
How can I access an
EMERGENCY $10,000 GRANT?
- Eligible applicants for an EIDL can receive a $10,000
emergency grant within three days of application
(through Dec. 31)
- There is no obligation to repay the grant. To receive the
$10,000 emergency grant, it is not necessary to have
an approved EIDL loan. However, if you are able to
secure a PPP loan, the $10,000 grant will be subtracted
from the forgiveness amount
NOTE: The Paycheck Protection Program (PPP) created
by the CARES Act prohibits borrowers from taking out two
loans for the same purpose.
- For more information on PPP
loans, visit uschamber.com/sbloans
How do I APPLY?