Do I Qualify for an Economic Injury Disaster Loan (EIDL)?


What is an EIDL loan?

An Economic Injury Disaster Loan (EIDL) is a loan offered to small business owners in Florida and throughout the United States amidst the Coronavirus (COVID-19) pandemic. This loan has an interest rate of 3.75%.

One of the most attractive features of the EIDL loan is its advance option. One can apply for an EIDL advance that will not have to be repaid. COVID-19 related EIDL advances can be up to $10, 000. The purpose of the COVID EIDL advances are to provide immediate relief while one’s regular EIDL loan is being processed.

The SBA considers a business of 500 employees or less a small business. Nonetheless, some industries render small businesses with a higher number of employees to still be a small business as per the SBA Table of Small Business Size Standards on its website. Business owners in Miami can reference this table to determine if they qualify as a small business.

To qualify for an EIDL loan, a small business must be organized for profit, have a place of business in the U.S., and operate primarily within the U.S.. Additionally, it must be independently owned and operated, and must not be the dominant nationwide business in its field.

How do I Apply for an EIDL Loan as a Florida Business owner?

A business lawyer can help guide you through the process of obtaining an EIDL loan. First, one must apply for an EIDL on the SBA’S website:

The application will ask you to provide business information, such as your income statement as of January 31, 2020. Additionally, individuals who own a 20% or greater stake will be asked to provide their Social Security Number, birthday, birthplace, citizenship status, and street address. If your business is owned by another business, you will need to indicate that. The application itself should take no longer than two hours and ten minutes.

Once one has applied for the loan, one can request the advance. This grant money will be given to the applicant, and it will not have to be repaid, whether or not the applicant ultimately qualifies for the normal EIDL. If the applicant does qualify for a normal EIDL, the loan advance will be deducted from the total loan eligibility.

How can I use my EIDL loan?

Those that apply for EIDL loans have also likely received a Paycheck Protection Program (PPP) loan. The SBA requires that one use the PPP and EIDLs funds for different purposes. For example, if an employer uses the PPP for payroll, the employer cannot use the EIDL funds for payroll as well. The employer can use the funds for debts, accounts payable, or other bills.

When will I Receive my EIDL Loan?

Upon submitting an EIDL application, the applicant will be assigned a loan officer, who can assign the advance within days if the application is successfully filed. Receiving the EIDL loan itself will take much longer, closer to one month.

EPGD Business Law is located in beautiful Coral Gables. Call us at (786) 837-6787, or contact us through the website to schedule a consultation.

*Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns. Contacting us through our website does not establish an attorney-client relationship.*

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Oscar Gomez

Oscar A. Gomez is a Partner and Chair of the Litigation Practice Group at EPGD Business Law. His practice focuses on Business Litigation, including but not limited to Business & Partnership Disputes.


*The following comments are not intended to be treated as legal advice. The answer to your question is limited to the basic facts presented. Additional details may heavily alter our assessment and change the answer provided. For a more thorough review of your question please contact our office for a consultation.



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